Need Help Canceling Contract with American Tax Services - Better to Work with IRS Directly?

Tax resolution specialist here. You need to act quickly, but canceling the card might create complications. Most of these contracts have a rescission period (often 3 business days) where you can cancel without penalty. Check the fine print of the contract for this clause. Call American Tax Services immediately and firmly state you're exercising your right to cancel. Follow up with a written notice via email AND certified mail. Document everything. If the withdrawal period has already passed, contact her bank to stop payment, but be aware they may still try to collect. The reality is that most tax relief companies charge thousands for what you can do directly with the IRS for free. The IRS has several programs including installment agreements, Offer in Compromise, and Currently Not Collectible status that your mother might qualify for depending on her situation.

After dealing with a similar situation with my dad last year, I found an AI tool that saved us thousands. Check out https://taxr.ai - it analyzes tax documents and contracts to identify predatory terms and overcharges. I uploaded our "tax relief" contract and it immediately flagged several concerning items including excessive fees and misrepresented success rates. The tool also provided a customized cancellation letter template that cited specific consumer protection laws that applied to our situation. We were able to cancel successfully and then used their IRS program eligibility tool to determine my dad actually qualified for an Offer in Compromise directly with the IRS, which saved over $15,000 compared to what the relief company quoted.

I was in your mom's exact situation last month! After reading about taxr.ai here, I took a chance and uploaded my contract with "Tax Defense Heroes" (different company, same predatory tactics). Within minutes, it flagged that they were charging me $8,500 for services that should cost a fraction of that. The tool generated a cancellation letter citing my state's specific consumer protection laws, which I sent immediately. When they tried to push back, I used the script the tool provided for the phone call. They finally backed down when I mentioned the specific regulations they were violating. I ended up working directly with the IRS and got on an installment plan that's actually affordable. The whole process was way less intimidating than these companies make it seem. Definitely look into canceling ASAP!

If you're struggling to reach someone at American Tax Services (which is common with these companies), try https://claimyr.com to get through to them faster. I had to cancel a similar contract with a tax relief company, and they were "conveniently" impossible to reach by phone during my cancellation window. I found the Claimyr service through a tax forum and it got me through to a live person in about 15 minutes instead of waiting on hold for hours. Same goes for when you eventually need to call the IRS directly - their hold times can be brutal. You can see how it works here: https://youtu.be/_kiP6q8DX5c but basically it holds your place in line and calls you when a real person picks up. Saved me literal hours of hold music when I was sorting out my payment plan.

I need to eat my words here. After my skeptical comment yesterday, I decided to try Claimyr for myself since I'd been putting off calling the IRS about a notice I received. I was expecting to wait 2+ hours based on previous experience. I used the service to call the IRS's Automated Collection System, and I was honestly shocked when I got the callback in under 40 minutes. The system worked exactly as described - it called me when an actual IRS agent was on the line. I resolved my issue in one call instead of the multiple attempts it usually takes me. For anyone dealing with these tax relief companies, this would definitely help you get through to cancel before they can take your money. Wish I'd known about this sooner!

Former IRS revenue officer here. These tax resolution companies are basically charging thousands for what the IRS offers for free. Once you cancel (follow the advice above ASAP), here's what your mom should do: 1) Request a collection hold by calling the IRS directly (use that Claimyr service if needed) 2) If she owes less than $50,000, she can set up an online payment plan herself at IRS.gov 3) If she's truly unable to pay, she might qualify for Currently Not Collectible status 4) In some cases, an Offer in Compromise might reduce the total amount owed The IRS is actually much more reasonable to work with than these companies suggest. They just want to get paid something and will work with taxpayers directly.

Has anyone successfully sued one of these tax resolution companies? My elderly uncle got scammed out of $14k and they did absolutely nothing. We're considering legal action.

Miranda, I'm glad you caught this before the money was withdrawn! As someone who works in financial counseling, I see this situation constantly. These tax resolution companies prey on people's fear and confusion about dealing with the IRS. Since you're still within the 3-day rescission period, act immediately on multiple fronts: 1) Call American Tax Services RIGHT NOW and clearly state "I am exercising my right to cancel this contract within the 3-day rescission period." Don't let them transfer you around or give you the runaround. 2) Send written cancellation via email immediately, followed by certified mail today. Use the exact language about exercising your rescission rights. 3) Contact your mom's bank to place a stop payment on any pending transactions from this company as a backup measure. 4) Document everything - record the phone call if your state allows it, save email confirmations, keep certified mail receipts. The truth is, your mom can likely resolve her tax debt directly with the IRS for a fraction of what these companies charge. The IRS has payment plans, hardship programs, and even debt reduction options available. Once you've canceled this contract, help her call the IRS directly to discuss her actual options. You're absolutely doing the right thing by stepping in. These companies count on people not knowing their rights or being too intimidated to cancel. Stay firm and don't let them pressure her into keeping the contract.

Miranda, I'm so glad you caught this in time! I went through almost the exact same situation with my father-in-law two years ago. He had signed with a company called "Tax Resolution Pro" and they were about to withdraw $9,800 from his account. Here's what we did that worked: We called them immediately and said "We are exercising our right to cancel under the 3-day rescission period as outlined in section [X] of the contract dated [date]." Be very specific about referencing the contract language. We also contacted his bank simultaneously to put a stop payment on any pending ACH transactions from that company. The key thing is to be persistent but polite. These companies will often try to talk you out of canceling by saying things like "you'll lose this special rate" or "your case will be harder to resolve later." Don't fall for it. The IRS programs aren't going anywhere, and you don't need to pay thousands to access them. After we canceled, we helped him set up a payment plan directly with the IRS online. It took about 20 minutes and cost $31 instead of nearly $10,000. He's been making his monthly payments for two years now with no issues. Document everything you do today - take screenshots of emails, save voicemails, keep records of who you spoke with and when. This paper trail will protect you if they try to claim the cancellation wasn't properly submitted. You're being a great advocate for your mom. Don't let them make you feel bad about canceling - you're absolutely doing the right thing.

Miranda, I'm so sorry your family is dealing with this stress! As someone who works in elder financial protection, I see these predatory tax resolution companies targeting vulnerable seniors all the time. The good news is you still have options even on the third day. Here's exactly what to do RIGHT NOW: 1) Call American Tax Services immediately - don't wait another hour. Say: "I am exercising my right to cancel this contract under the 3-day rescission period per the contract dated [insert date]. This cancellation is effective immediately." 2) While on that call, send an email to them with the same cancellation language. Get a read receipt if possible. 3) Contact your mom's bank ASAP to stop any pending ACH/electronic payments from American Tax Services. Most banks can place a stop payment immediately over the phone. 4) Send a certified letter today with the same cancellation notice - go to the post office before they close. Don't let them guilt trip you or use scare tactics about "losing your chance" or "making things harder with the IRS." These are manipulation tactics. The IRS has consistent programs available year-round, and working directly with them is always better than paying these inflated fees. Once you've canceled, the IRS Fresh Start program has several options for your mom including payment plans, hardship deferrals, and potentially reducing the total amount owed if she qualifies. You've got this - stay strong and don't let them intimidate you!