These television ads for people who need help with their IRS debt irritate me no end. They invariably portray the non-taxpayers as victims, their enormous debts to the government somehow a function of IRS venality, and the company advertising their ability to assist as white knights tilting against the power of the IRS.
Most of us pay our taxes. We might not be happy about it, especially in light of some of the stories about government misspending, but we are law-abiding citizens and so we pay up. Not so the debtors in these ads. They are scofflaws of the highest order, willing to allow their neighbors to foot the bill for our central government while they, the tax cheats, fail to pay their share. Over time, they end up with huge debts to the IRS, debts which invariably include late fees, penalties, and interest that inflate their debts even more.
The ads promise to get them off with the payment of only a fraction of their debt. They will interface with the IRS for the tax cheats and work out a deal so that much of the debt goes away with only a partial payment. Naturally, a significant part of the deal is a payment to the tax relief company for their assistance.
Well, guess what? In most instances, the tax debtor could go to the IRS on his own and work out the same deal. The IRS is willing to work with these people and often what reduces the debt significantly is not some magic mouthpiece working for a tax relief company but the willingness of the IRS collection agent to accept a percentage of the original tax owed sans late fees and penalties.
The tax relief companies prey upon the tax cheats, not that they don’t deserve it. With hard economic times upon us, the situation promises to continue. Sharks will always be attracted to blood in the water.