# Anyone have experience with tax debt relief services?
**URL:** https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758
**Category:** In My Humble Opinion
**Created:** [September 12, 2016, 3:08pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758 "2016-09-12T15:08:32Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@Cuckoorex](https://boards.straightdope.com/u/Cuckoorex)
#### Post date: [September 12, 2016, 3:08pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/1 "2016-09-12T15:08:32Z")
Wondering if any of them are legit, or if it’s mostly scam artists. Anyone? Thanks in advance for the replies!
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### Author:  [@Yarster](https://boards.straightdope.com/u/Yarster)
#### Post date: [September 12, 2016, 9:37pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/2 "2016-09-12T21:37:21Z")
While I admit I don’t know anyone who has used on of these services, I have universally heard they are scam artists. Unless your debt is due to something that could reasonably be written off and as the result of incorrectly filed returns and they are expert negotiators who will get the IRS to waive or dismiss debt for a fee, you’d be better off getting a payment plan with the IRS directly. Otherwise, you’ll be beholden to a private company that will no doubt bind your house or some other tangible asset to the debt so they can foreclose or legally repossess it from you when you miss a payment. Their logic is, if you got yourself in financial dire straits with the IRS and are turning to them, you are very likely not good with making payments, and if that is the case, you’ll miss some of theirs too - doubly so if they have a high interest rate.
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### Author:  [@Lemur866](https://boards.straightdope.com/u/Lemur866)
#### Post date: [September 12, 2016, 10:05pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/3 "2016-09-12T22:05:54Z")
They are all pretty much con artists.
> **[Trouble Paying Your Taxes?](https://consumer.ftc.gov/articles/tax-relief-companies)**
>
> Do you owe back taxes and don’t know how you’re going to pay them? Tax relief companies say they can lower or get rid of your tax debts and stop back-tax collection. They say they’ll apply for IRS hardship programs on your behalf for an upfront fee....
> [@](#):
>
> Contact the Taxpayer Advocate Service, an independent organization within the IRS, for free help if you are having tax problems that you haven’t been able to resolve yourself, if your problems are causing financial difficulties for you or your business, or you face an immediate threat of adverse collection action by the IRS. Call 1-877-777-4778 or visit [irs.gov/advocate](http://irs.gov/advocate).
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### Author:  [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)
#### Post date: [September 12, 2016, 10:37pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/4 "2016-09-12T22:37:46Z")
Contact the IRS and any applicable state or local authorities. E.g. fill out an [installment plan](https://www.irs.gov/uac/about-form-9465), which is likely to be less usurious than other options. There may be other options as well, and more pleasant than waiting for them to garnish your wages.
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### Author:  [@SpoilerVirgin](https://boards.straightdope.com/u/SpoilerVirgin)
#### Post date: [September 12, 2016, 10:42pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/5 "2016-09-12T22:42:34Z")
Agree with the posters above that you should contact the IRS directly. From reading a ton of discussions about people with debt problems, the IRS are actually one of the easiest creditors to deal with. They will work with you to come up with a payment plan, will charge reasonable interest, and won’t charge outrageous fees for the privilege.
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### Author:  [@Cuckoorex](https://boards.straightdope.com/u/Cuckoorex)
#### Post date: [September 12, 2016, 11:30pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/6 "2016-09-12T23:30:52Z")
Thanks for the replies! I had already requested a “free consultation” with a couple of the firms, and talked to them on the phone. Of course both are eager to get me to hire them; the first one didn’t mention what it would cost to hire them, the second gave a figure of $2800, with $500 down and 5 monthly payments of $460. But if I can contact the IRS and negotiate a payment plan, of course I’ll do that!
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### Author:  [@Musicat](https://boards.straightdope.com/u/Musicat)
#### Post date: [September 12, 2016, 11:36pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/7 "2016-09-12T23:36:23Z")
> [@Cuckoorex](#):
>
> Wondering if any of them are legit, or if it’s mostly scam artists. Anyone? Thanks in advance for the replies!
NONE are legit. ALL are scam artists. But that’s just my opinion. Let us know how it works out.
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### Author:  [@dracoi](https://boards.straightdope.com/u/dracoi)
#### Post date: [September 12, 2016, 11:50pm UTC](https://boards.straightdope.com/t/anyone-have-experience-with-tax-debt-relief-services/765758/8 "2016-09-12T23:50:39Z")
I’ll agree that many of the tax settlement companies out there are frauds.
On the other hand, the FTC’s advice does not seem realistic to me. In dealing with even simple payment plans for my clients over the last year, I’ve discovered that I have to know the IRS’s procedures so that I can explain to the IRS’s employees what information they need and what steps they should take next.
For example, a recent conversation went like this
IRS Agent: “I need copies of bank statements”
Me: “No, you don’t. The Internal Revenue Manual says you can approve a streamlined agreement based only on the amount of debt and proposed monthly payment.”
IRS Agent: “Yes, but my manager might need the statements.”
Me: “No. The IRM says you can approve a streamlined agreement without manager approval.”
IRS Agent: “Well, then, um, what about a recent pay stub?”
Me: “Number one, you already have it. Number two, the IRM says you don’t need it.”
IRS Agent: “Well… let me review my files. Try calling me back tomorrow.”
I don’t know whether it makes sense to have those crazy conversations yourself or to hire someone to have them for you, but the IRS this year is understaffed and undertrained. I’ve been dealing with these guys for ten years and haven’t seen anything like this.
It’s probably worth starting the process yourself with the help of the Taxpayer Advocate Service and then seeing how far you get, but I really am not confident of the IRS’s ability to even open their mail this year.