Tax Relief Scams
Rates and standards last checked against IRS.gov: November 6, 2026
People who owe the IRS are prime targets for scammers and overpriced settlement companies. This guide shows how the IRS really contacts you, the warning signs to watch for, and where to report fraud.
Quick answer
How do I spot a tax relief scam?
Be wary of anyone who guarantees results, promises to settle for "pennies on the dollar" before reviewing your finances, or charges large fees upfront. The real IRS usually contacts you by mail first and never demands payment by gift card, wire transfer or cryptocurrency.
Who this applies to: Anyone who owes the IRS or is contacted about a tax debt.
What can change this answer
- Pay the IRS only through IRS.gov/payments or by check made out to U.S. Treasury.
- You can apply for payment plans, penalty relief and offers yourself.
- Legitimate representatives are enrolled agents, CPAs or attorneys.
Recommended next step
Check your real balance in your IRS online account before you talk to any company.
Reviewed by Joseph Lancaster, 13+ years in tax resolution.
Key facts
| Item | Fact | Source |
|---|---|---|
| How the IRS usually first contacts you | By letter in the mail | IRS: How to know it's really the IRS |
| Gift cards, wire transfers or crypto | The IRS never demands payment this way | IRS: How to know it's really the IRS |
| Where to pay the IRS | IRS.gov/payments, or checks made out to U.S. Treasury | IRS: Payments |
| Offer in Compromise "mills" | On the IRS Dirty Dozen list of tax scams | IRS: Dirty Dozen tax scams |
| Report someone pretending to be the IRS | Treasury Inspector General for Tax Administration (TIGTA) | TIGTA: Report crime or misconduct |
| Report a tax relief company | FTC ReportFraud, and Form 14157 for preparers | FTC: ReportFraud |
Compiled November 10, 2026 from the linked primary sources.
How do I know if it's really the IRS?
The IRS usually starts with a letter in the mail. Its employees may call or visit in some cases, such as an unpaid balance or an audit, but generally only after you've had letters. A real IRS contact won't:
- Demand immediate payment by gift card, prepaid debit card, wire transfer or cryptocurrency.
- Threaten to have police or immigration officers arrest you for not paying.
- Demand payment without giving you a chance to question or appeal the amount.
- Ask for credit or debit card numbers over the phone.
If you're not sure, hang up and check yourself
What are the warning signs of a tax relief scam?
Some companies that advertise tax debt relief charge large fees and deliver little. The IRS calls the worst of them Offer in Compromise "mills" and lists them among its Dirty Dozen tax scams. Watch for these signs:
- Promises to settle your debt for "pennies on the dollar" before reviewing your income, expenses and assets.
- Guarantees that the IRS will accept an offer or remove a levy.
- Large upfront fees charged before any work is done.
- Pressure to sign today, or claims that a special program is about to end.
- Asks you to send IRS payments to the company instead of directly to the IRS.
- Won't name the enrolled agent, CPA or attorney who will handle your case.
Most people don't qualify for an offer
Source: IRS: Dirty Dozen tax scams
How do I find legitimate help?
- Check credentials: only enrolled agents, CPAs and attorneys have unlimited rights to represent you before the IRS. You can look up credentialed preparers in the IRS Directory of Federal Tax Return Preparers.
- Get the fee in writing:ask what it covers and what happens if they can't help.
- Know what you can do yourself: you can set up an installment agreement online or ask for penalty abatement by phone, without hiring anyone.
- Free help may be available: Low Income Taxpayer Clinics and the Taxpayer Advocate Service help people at no or low cost.
Where do I report a tax relief scam?
- Someone pretending to be the IRS: report it to the Treasury Inspector General for Tax Administration (TIGTA).
- A tax relief company that misled you: report it to the FTC at ReportFraud.ftc.gov and to your state attorney general.
- A tax preparer: file Form 14157, Return Preparer Complaint, with the IRS.
- If you already paid: contact your bank or card issuer right away to try to stop or reverse the payment.
Check a tax relief company before you pay
Go through each item before you sign anything or hand over money.
- Ask for the name of the enrolled agent, CPA or attorney who will work your case, and check their credentials.
- Ask for the total fee in writing, what it covers, and the refund policy if they can't help.
- Be wary of anyone who promises to settle for "pennies on the dollar" before reviewing your finances.
- Be wary of large upfront fees charged before any work is done.
- Look up your own balance and notices in your IRS online account, so you know the real numbers.
- Check whether you qualify for an offer yourself with the IRS Offer in Compromise Pre-Qualifier.
- Never pay the IRS through a company's account. Pay the IRS directly.
Frequently asked questions
How do I know if it's really the IRS contacting me?
The IRS usually contacts you first by letter in the mail. It won't demand immediate payment by gift card, prepaid debit card, wire transfer or cryptocurrency, threaten to have you arrested, or ask for card numbers over the phone. If you're unsure, check your IRS online account or call the number on IRS.gov, not a number given to you by the caller.
What is an Offer in Compromise mill?
The IRS uses this term for companies that heavily advertise settling tax debt for "pennies on the dollar" and charge large fees to people who don't qualify for an Offer in Compromise. The IRS lists them on its Dirty Dozen list of tax scams.
Are all tax relief companies scams?
No. Enrolled agents, CPAs and attorneys can legitimately represent you before the IRS. The warning signs are guaranteed results, large upfront fees before anyone looks at your finances, and pressure to sign quickly.
Can I apply for IRS relief without a company?
Yes. You can set up a payment plan online, ask for penalty relief by phone, and apply for an Offer in Compromise yourself using the forms in the Form 656 booklet. The IRS doesn't require you to hire anyone.
Where do I report a tax relief scam?
Report someone pretending to be the IRS to the Treasury Inspector General for Tax Administration (TIGTA). Report a company that misled you to the FTC at ReportFraud.ftc.gov and to your state attorney general. Complaints about a tax preparer go to the IRS on Form 14157.
What should I do if I already paid a scammer?
Contact your bank or card issuer right away and ask them to stop or reverse the payment. Report it to the FTC and, if the scammer pretended to be the IRS, to TIGTA. Then check your real balance in your IRS online account, because the IRS debt is still owed.
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