Why Am I Getting Tax Debt Relief Calls?

Unexpected calls about tax debt relief are surprisingly common. Sometimes they're from legitimate companies trying to drum up business. Other times, scammers call hoping to trick you into sharing personal information. 

In either case, these calls usually aren't cause for concern as long as you know how to respond. We'll look at common reasons you might be receiving tax debt relief calls, signs of a scam, how to stop debt relief calls in general, and what to do if you actually have tax debt you need help with.

Common Reasons You're Receiving Tax Debt Relief Calls

Here's a look at some of the most common reasons you might receive tax debt relief calls.

Your information is on data broker lists

Data brokers gather personal information from public records, online forms, and various sources and sell this to other companies. If your contact details wind up on one of these lists, a variety of companies—not just tax debt relief companies—could reach out to you to offer their products and services. You're under no obligation to respond.

Your online activity triggered marketing

Searching for tax-related websites or advice could trigger targeted advertising and marketing calls for tax-related products—even if you don't search for anything that indicates you have tax debt. A simple "how to file your tax return" search could be enough. Getting a call shortly after a search like this doesn't mean you've done anything wrong or that you have an outstanding tax bill you didn't know about. 

You may have had a past tax issue

Some past tax issues, like tax liens, become a part of public records. If your name finds its way onto a data broker's list, they might identify you as a target for tax debt relief calls, even if your past tax issue was resolved. 

Random or automated dialing

Sometimes a tax debt relief call is pure chance. A robocaller working through all the phone numbers in your area might just happen upon yours. That doesn't mean there's any issue with your taxes or that you owe anything to the IRS.

Warning Signs of a Tax Relief Scam Call

Tax relief scams are especially common. Here are some of the key signs you should look for. Don't hand over any personal information if you spot these.

Caller claims to be from the IRS

The IRS contacts you via official mail when there's a real issue with your tax return or you have unpaid taxes. If you haven't received any letters and someone calls you claiming to be from the IRS, it’s likely a scam. Be careful about handing out personal information, even if the phone number appears official. Scammers can fake this.

Promises to settle debt for pennies on the dollar

Legitimate debt relief companies can’t offer any guarantees about how much they can save you, since they can’t compel creditors to settle with you. The IRS, in particular, is unlikely to allow you to settle outstanding debts for pennies on the dollar. If you notice any claims like this that seem too good to be true, be on your guard.

Demands for immediate payment or personal information

Scammers try to create a sense of urgency or fear to get you to hand over personal information before you've had a chance to really think about it. This is the opposite of how legitimate debt relief companies work. Established, reliable companies take their time, answer your questions, and make sure you have a complete understanding of the process before you have to hand over any personal information.

Charges upfront fees before doing any work

Scammers posing as someone trying to help you with your tax debt might demand upfront payment, then do little or nothing for you. Legitimate debt relief companies, like Freedom Debt Relief, aren’t allowed to take payment before they've reached a settlement that you approve and they've begun paying your creditor. Always research a company you're considering before you give them any money.

How to Stop Tax Debt Relief Calls

The following steps could significantly reduce the number of tax debt relief calls you get.

Register with the National Do Not Call Registry

You can join the National Do Not Call Registry for free online or by calling 1-888-382-1222. This can reduce legal marketing calls, though it can take up to 31 days to take effect. 

Also note that it may not stop scammers. They're already operating outside the law, so they may not comply with the registry's terms. 

Use call-blocking tools

Many smartphones already have some degree of spam blocking, and they enable you to block calls from unwanted numbers. Some cell phone carriers also have free spam blocking apps, like AT&T's ActiveArmor or T-Mobile Scam Shield. 

Some third-party apps can also reduce unwanted calls. Some of these may require a monthly subscription. If you don't want to pay for this year-round, you could activate your subscription during tax season when tax debt relief calls are most common. Then, you could cancel it afterward. Just remember to unsubscribe or the app developer will continue to charge you.

Request removal from the caller's list

Legitimate debt relief companies will honor requests to be removed from their call list. This may not work with scammers. In that case, it could help to document everything you can about the calls—the number used, when the call occurred, who you spoke to, the name of any company they give, and anything else you can remember that might be helpful. Then, follow the tips in the next section to report them.

Where to Report Suspicious Tax Relief Calls

If you receive a suspicious tax debt relief call that you think might be a scam, report it to the following agencies:

• Federal Trade Commission (FTC). Report the call to the FTC online or by calling 1-877-382-4357.

• Treasury Inspector General for Tax Administration (TIGTA). If the caller claims they work for the IRS, report them to TIGTA by calling 1-800-366-4484 or email [email protected].

Reporting these calls can help the authorities track patterns and protect other people from falling victim to these scams. When you make your report, provide as much detail as you can about what the caller promised and what they requested from you as well as any names or contact information they gave you.

Legitimate Options If You Have Tax Debt

You’ve got legitimate ways to address tax debt if you can’t afford to pay your bill all at once. Here are your best options.

Contact the IRS directly

Your best bet is to contact the IRS directly, either through its website or by calling 1-800-829-1040. The IRS has options, like installment agreements, to help those who are struggling with their payments.

In some cases, the IRS will let you settle your debt through an offer in compromise. You tell the IRS what you can afford to pay. The agency will review your income, assets, and other factors and make a decision about your offer. If they accept, you're off the hook for the remaining tax debt. 

Low-income taxpayer clinics

Low-income taxpayer clinics help those who may not be able to afford to hire an accountant or tax attorney to get help with their tax debt. These programs are usually run through law schools, legal aid societies, or nonprofits. You can find a list of clinics on the IRS's Taxpayer Advocate Service website.

Get help with other unsecured debts

An offer in compromise is the primary way to directly settle your tax debt with the IRS for less than you owe. Settling other types of unsecured debts, like credit card debt or personal loan debt, may give you more breathing room in your budget that you could put toward your tax bill. You can do this on your own or work with a professional debt settlement company, like Freedom Debt Relief.

Taking Control of Your Finances After Tax Relief Calls

Tax relief calls aren't always a problem. Often, they don't need any response at all. But if you suspect a scam, it helps to notify the authorities.

If you have actual tax debt, you have options. Start by reaching out to the IRS to find out what it's willing to offer you. Act promptly. If you can show you're being proactive, you have a better chance of reaching a favorable deal.