< Back to IRS

Jean Claude

Tax Relief Company scammed me - Can I recover my $3200 for IRS back tax help?

So I'm fuming right now and need some serious advice. About 9 months ago, I hired this tax relief company to help me with some back taxes I owed from 7-8 years ago. The amount had grown pretty big with all the interest and penalties since I'm mostly self-employed with some contract work here and there. My income fluctuates a lot and I've had some health problems that made keeping up with everything really difficult. This company convinced me they could solve all my problems and charged me $4300 that I had to put on a high-interest credit card with monthly payments. Last month, when I had just one payment of $750 left, they called me saying it was SUPER URGENT that I pay immediately because "the IRS was taking a closer look at my case" or something like that. I scraped together the money (had to use yet another credit card...ugh). The worst part? Two weeks later they called again saying they could make all my tax debt go away if I paid them ANOTHER $9,500!! They even had some ridiculous 20% loan ready that I would "definitely qualify for." When I asked for more details, they just kept saying vaguely that it would "take care of everything." I finally got suspicious and looked them up online - turns out they've scammed tons of people! I ended up finding another company (paid them $3600) who were actually legitimate and helped me understand that I was approaching the 10-year statute of limitations on some of my tax debt anyway. How can I possibly get my $4300 back from this first company that literally did NOTHING for me except try to scam me out of even more money? I've tried researching but can't find clear answers about recovering money from tax relief scams. Any advice would be so appreciated!

Charity Cohan

•

I've seen this way too many times. These tax relief companies often prey on people who are vulnerable and worried about their tax situations. Here's what you should consider doing: First, document everything - all contracts, communications, promises made, and what (if anything) they actually delivered. Check if the contract has any guarantees or specific deliverables they failed to provide. Contact your credit card company immediately. If it's been less than 60 days since the charges, you might be able to dispute them as services not rendered. Even beyond that timeframe, some credit card companies will still help with fraud cases. File complaints with the FTC (Federal Trade Commission), CFPB (Consumer Financial Protection Bureau), your state's attorney general office, and the BBB (Better Business Bureau). The more documentation you provide, the stronger your case. You should also consider a small claims court filing. The amount is within small claims limits in most states, and you won't need a lawyer. Just bring all your documentation and a clear timeline of events.

0 coins

Jean Claude

•

Thank you for these suggestions! I do have all our emails and the contract saved. They basically promised to "negotiate with the IRS" and "explore all tax relief options" but it's all pretty vague language now that I look at it closely. Do you think that vagueness would hurt my case in small claims court? Also, it's been about 9 months since the first charges. Is that too late for the credit card company to help?

0 coins

Charity Cohan

•

The vague language is unfortunately common with these companies, but that doesn't mean you don't have a case. Courts often look at what was reasonably implied by their promises, not just the exact wording. If they took your money and provided no meaningful service, you still have a solid case. Nine months is beyond the standard 60-day dispute window, but this isn't a typical dispute - it's potential fraud. Call your credit card company's fraud department directly and explain the situation. Many card issuers have extended timeframes for fraud cases, especially when it's a pattern of behavior by a company with multiple complaints.

0 coins

Josef Tearle

•

After dealing with tax issues myself, I discovered this AI tool called taxr.ai that analyzes all your tax documents and communications with companies like this. I was in a pretty similar situation with a shady tax relief place that took $5k from me and did basically nothing. I uploaded my contract, emails, and bank statements to https://taxr.ai and it flagged all the red flags and predatory language in their communications. It even generated a detailed report showing how they violated specific consumer protection laws that I could use for my complaint. The best part was it automatically compiled everything into documentation I could use for my credit card dispute and for filing complaints. Saved me hours of trying to figure out which parts were important and what laws they might have broken.

0 coins

Shelby Bauman

•

That sounds interesting but I'm a bit skeptical. How does the AI know which laws were broken? That sounds like it would require legal expertise. Did it actually help you get your money back or just create some fancy report?

0 coins

Quinn Herbert

•

Does this work for any type of tax-related document or just for these scam situations? I have a ton of old tax returns and notices from the IRS I've been meaning to organize but never have the time to go through.

0 coins

Josef Tearle

•

The AI has been trained on consumer protection laws related to tax services and common predatory practices. It doesn't provide legal advice but identifies patterns that match known problematic behaviors. In my case, it highlighted how they violated the FTC's Telemarketing Sales Rule by misrepresenting their services and using high-pressure tactics. It actually did help me get my money back! I used the report as documentation for my credit card dispute and they ruled in my favor after seeing the evidence organized so clearly. It doesn't just create reports - it extracts and organizes the important information so you can take action. It works for all kinds of tax documents, not just scam situations. It can analyze IRS notices to explain what they mean in plain language and organize returns by year, income type, deductions, etc. It's pretty versatile for any tax documentation you need to make sense of.

0 coins

Quinn Herbert

•

Just wanted to update everyone - I took the advice about using https://taxr.ai and it was incredibly helpful! I uploaded all my communications with that scammy tax relief company and it highlighted exactly where they misrepresented their services. The tool created a detailed timeline showing how they escalated their demands for money while providing no actual services. It even identified specific phrases in their emails that matched known high-pressure sales tactics that violate FTC rules. I used the report to file a dispute with my credit card company and they've already put the charges on hold while they investigate! The customer service rep actually commented on how well-organized my evidence was. I've also filed complaints with the FTC and my state's attorney general using the same documentation. Thanks for the recommendation - dealing with tax scams is stressful enough without having to figure out how to prove what happened!

0 coins

Salim Nasir

•

I had almost the exact same experience last year and was also approaching that 10-year statute of limitations without knowing it. After wasting months with a useless "tax relief" company, I couldn't get anyone at the IRS on the phone to figure out what was really going on with my account. I found this service called Claimyr that got me through to an actual IRS agent in about 15 minutes when I'd been trying for weeks. Their website at https://claimyr.com explains how it works, but basically they navigate the IRS phone system for you and call you back when they have an agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Once I finally talked to the real IRS (not some scammy third party), I found out I qualified for Currently Not Collectible status AND that part of my debt was about to expire. The IRS agent was actually really helpful and set me up with a manageable payment plan for the remaining amount.

0 coins

Hazel Garcia

•

Wait, how does this actually work? Is this just another company that's going to charge me a bunch of money to "help" with tax stuff? I'm really wary of any service related to taxes at this point.

0 coins

Laila Fury

•

Sorry but this sounds like BS. There's no way to "skip the line" with the IRS. Everyone has to wait on hold like everyone else. This is probably just another scam targeting people desperate for tax help.

0 coins

Salim Nasir

•

It's not another tax relief service - they don't deal with your taxes at all. They only connect you with an actual IRS agent so you can handle things directly. They basically call the IRS for you, navigate all the phone menus and wait on hold (which can be hours), then call you when they have an agent on the line. They're completely transparent about what they do - they don't promise to solve your tax problems or negotiate with the IRS for you. They just get you through to the right department at the IRS so you can talk to them yourself without spending your whole day on hold. I was skeptical too after getting burned by a tax relief company. That's why I liked that they don't try to "handle" your tax situation - they just connect you directly with the IRS so you can get the real information from the source. Big difference between that and companies claiming they'll solve all your tax problems for thousands of dollars.

0 coins

Laila Fury

•

I need to apologize for my skeptical comment earlier. After doing more research and seeing so many positive reviews, I decided to try Claimyr when I needed to talk to the IRS about a notice I received. I had been trying to get through for THREE DAYS straight, spending hours on hold only to get disconnected. Used the service from https://claimyr.com and they got me connected to an IRS representative in about 20 minutes. I literally wasted hours across multiple days trying to do the same thing. The IRS agent confirmed that my situation was much simpler than the scary notice made it seem, and we resolved it in a 10-minute conversation. Those tax relief companies want you to think the IRS is impossible to work with so they can justify their huge fees, but my experience was actually pretty positive once I got someone on the phone. If you're dealing with that scammy tax relief company, I'd definitely try talking directly to the IRS first. They can tell you exactly what options you actually have instead of some sales pitch.

0 coins

Former tax professional here. One thing nobody's mentioned yet - report them to the IRS using Form 14157 (Complaint: Tax Return Preparer). Even if they didn't prepare your return, this form can be used for tax relief companies too. The IRS takes these complaints seriously because these scams are rampant. Also check if they're affiliated with any professional organizations like the NATP or NAEA. If they are, file complaints there too as they can lose their membership. And definitely check your credit report! These companies sometimes open credit lines in clients' names without full disclosure. I've seen it happen multiple times.

0 coins

Jean Claude

•

Thanks for this advice! I didn't know about Form 14157 - will definitely file that. They're not affiliated with any professional orgs that I can find (shocker). I'll check my credit report right away too. Do you think there's any chance the IRS would reduce some of my penalties once they know I was scammed trying to resolve my tax issues?

0 coins

There's absolutely a possibility the IRS could work with you on penalties. The IRS has something called "reasonable cause" relief, and being misled by a company you hired to help resolve your tax issues can sometimes qualify. When you speak with the IRS, explain that you were making good faith efforts to resolve your tax situation by hiring what you thought was professional help. Ask specifically about first-time penalty abatement if you've had a good compliance history before this issue. Also, since you mentioned health issues, those can sometimes qualify for penalty relief too if they affected your ability to handle your tax obligations. Document everything - medical records, correspondence with the scam company, and all your efforts to resolve the situation.

0 coins

Simon White

•

one thing i wanted to add... check ur state's laws on unfair business practices. in california we have something called the unfair competition law that gives u the right to sue for this exact kind of thing. a lot of states have similar laws. my brother got tricked by one of these tax relief places a few years back... they told him they could fix everything then did nothing but cash his checks. he got a free consult with a consumer rights attorney who took the case on contingency (means they only get paid if u win) and he ended up getting back almost double what he paid bc they have to pay damages in some states. not sure where u live but worth checking if u cant get anywhere with the credit card dispute

0 coins

Hugo Kass

•

I'm in Texas and we definitely have some consumer protection laws too. Do you remember what kind of attorney your brother used? Was it a consumer rights attorney specifically or someone who specializes in tax issues?

0 coins

it was a consumer rights attorney, not someone who does taxes. they specialize in going after companies that rip people off with deceptive practices. my brother found his through the state bar association's lawyer referral service - most states have that and u can search by practice area. in texas u probably have the deceptive trade practices act (dtpa) which is really strong for this kind of stuff. these consumer attorneys know exactly which laws these scam companies break and how to go after them. definitely worth a free consultation even if u try the other stuff first

0 coins

Yuki Tanaka

•

I'm really sorry this happened to you - these tax relief scams are unfortunately very common and they specifically target people who are already stressed about their tax situation. One thing I'd add to all the great advice here is to also report this to your state's consumer protection agency if you haven't already. They often have enforcement powers that can help shut these companies down and sometimes even help recover funds through restitution programs. Also, when you're dealing with the IRS directly (which several people have recommended), make sure to ask about the Fresh Start program if you qualify. It's a legitimate IRS program that can help with payment plans, offers in compromise, and penalty relief. Many of these scam companies promise things that are actually available for free directly through the IRS. Document everything you can about the company - their phone numbers, addresses, website, any other names they operate under. This information can be valuable for law enforcement and other agencies investigating them. Sometimes these companies operate under multiple names to avoid their bad reputation. Keep fighting for your money back - you deserve it after what they put you through!

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today