Tax Relief Scam Calls: How to Spot and Stop Them

Tax relief phone call scams are common all year round. Criminals use these scam calls to get money and commit identity theft. There really is an IRS tax debt compromise option that may allow you to settle your tax debt for less than the full amount. Make sure you're working with a legitimate offer from the real IRS.

There are, thankfully, some ways to tell if you're being contacted by the IRS or a con artist. And if you're not sure how to handle your tax debt, the real offer in compromise (OIC) may be the solution. OIC is an IRS program. Freedom Debt Relief doesn't handle tax debt.

If You Get This Call, Do This First

If someone calls, texts, or emails claiming you owe back taxes and demanding immediate payment, treat it as a scam. Follow these steps:

• Hang up or don't reply. Avoid sharing your Social Security number, bank details, or credit card information.

• Don't call back a number left in a voicemail or text. Verify any claim directly through IRS.gov or by calling 800-829-1040.

• Report the call to the IRS at [email protected] with the subject line "IRS Phone Scam," and to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

The IRS contacts taxpayers by mail first in nearly every case. A call demanding same-day payment is a strong sign of fraud.

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Why Am I Getting Tax Relief Phone Calls?

Scam calls surge during tax season, in the early months of every year. Criminals contact taxpayers and claim they are able to negotiate a debt settlement or eliminate tax debt, for an upfront fee.

Scammers get phone numbers through:

• Public records

• Data breaches

• Tax lien notices

• Social media

• Data brokers

Once a scammer has a list of numbers, mass calling is cheap and easy because of robocall technology.

Scammers often target seniors and people with real tax debt, since they view these groups as more likely to respond. Practically anyone may be targeted, though. 

What Is the IRS Offer in Compromise?

An offer in compromise (OIC) is a federal program that allows some taxpayers to pay less than the total amount of their tax debt to the IRS. If you can't pay your full tax bill, or if full payment would cause financial hardship, an OIC may be an option. You apply for this program directly with the IRS. Freedom Debt Relief doesn't handle tax debt.

Eligibility depends on your filing history, current bankruptcy status, and other requirements set by the IRS. The IRS reviews your income, expenses, and assets, and generally approves an offer if it's the most the agency could expect to collect from you within a reasonable time.

According to the IRS, you're eligible for an offer in compromise if you:

• Filed all your required tax returns and made all required estimated payments.

• Aren’t in an open bankruptcy proceeding.

• Have a valid extension on your current year tax return if you’re applying for an offer in compromise for the current year.

• Are an employer, and have made tax deposits for the current and past two quarters before you apply.

Weighing the IRS Offer in Compromise

An accepted OIC settles your tax debt for less than what you owe and stops the IRS from pursuing your assets or wages for that debt. Many applicants don't qualify, though: the IRS generally approves an OIC only for taxpayers who are unlikely to pay their full tax debt within 10 years. The process includes a $205 application fee, waived for applicants who meet low-income guidelines.

Beware of Tax Debt Compromise Program Phone Call Scams

The IRS lists tax debt compromise scams on its Dirty Dozen roster of tax scams every filing season. The FCC's Enforcement Bureau found 15.8 million robocalls about a "National Tax Relief Program" between Nov. 2023 and Jan. 2024, with no evidence the program is real. This pattern continues into the next tax season.

Scammers promise to solve tax debt for pennies on the dollar, often advertising on TV and radio or working from tax lien notices. They may charge fees for information you could find yourself, mislead you about your OIC eligibility, or steal your financial information.

Common tax relief scripts

Scammers often use phrases like "tax relief department," "new federal relief program," or "IRS forgiveness program," and sometimes reference a recent presidential administration. Here's an example of a typical scam voicemail:

"Hello, this is John at U.S. tax relief experts calling about your recent tax filings. It looks like you qualify for a federal relief program that could get rid of your tax debt with no penalties. This is a new program that was recently approved by the current administration to help people in your situation, but you need to enroll this month. So, before you make any arrangements to pay your tax debt, give me a call back at XXX-XXX-XXXX."

Practically anyone may be targeted by a tax scam, but people who owe money to the IRS face greater risk.

AI voice cloning and tax scam calls

Scammers increasingly use AI-generated voices and deepfake audio to sound more convincing. The warning signs stay the same regardless of how polished the call sounds: an unexpected call demanding payment, pressure to act immediately, and requests for personal information all point to a scam.

How Tax Relief Robocalls Work

A robocall is a pre-recorded message sent by an auto-dialer to a list of phone numbers. The message provides a callback number. Call it, and you reach a live agent who pressures you to pay upfront fees. Scammers often spoof caller ID so the call appears to come from a local number or a government agency, since those numbers are more likely to get answered.

Scammers prefer voicemails and prerecorded messages because they reach more people than live calls, and the format naturally filters out people who recognize the scam and don't call back.

Spot the Red Flags of Tax Relief Fraud

Watch for these warning signs:

• Unsolicited contact demanding payment right away. The IRS mails bills first and gives you the chance to appeal.

• A robocall or prerecorded voicemail. The IRS doesn't leave voicemails or make robocalls.

• A generic greeting like "Dear taxpayer." IRS mail is personalized with your name and address.

• A callback number that doesn't match the caller ID, a sign of spoofing.

• Guaranteed results. No legitimate program guarantees you qualify for an OIC before reviewing your case.

• High-pressure tactics or threats. The IRS doesn't impose same-day urgency.

• A request to pay by gift card, wire transfer, cryptocurrency, or prepaid debit card. Legitimate tax help doesn't require payment this way.

• A request for your Social Security number, bank details, or other personal information over the phone, text, or social media.

How the IRS Actually Contacts You

The IRS reaches out by mail first in nearly every case. It may call to discuss an existing case, verify information, or set up a meeting, but it doesn't demand payment by phone, email, text, or social media, and it doesn't guarantee OIC approval in advance. If you've never received mail from the IRS about a debt, treat any call claiming otherwise as a scam.

Block Future Scam Calls

Check what scam-call protection your wireless carrier offers. Verizon, AT&T, and T-Mobile all have free or paid apps that flag and block suspected scam and robocall numbers. Reporting spam calls to your carrier helps it block the number for other customers, too. You could also register your number with the National Do Not Call Registry.

What to Do if You've Been Scammed

If you sent money or shared personal information with a scammer, act quickly. Hang up or stop responding right away, and don't share any more information.

• Report it. Email [email protected] with the subject line "IRS Phone Scam," or contact TIGTA at 1-800-366-4484. You could also report the scam to the FTC, your state attorney general, the FBI, or the BBB.

• Dispute the charge. Contact your bank or credit card company, ask about reversing the transaction, and follow their dispute process. You typically have 90 to 120 days to dispute a charge.

• Protect your identity. Set up an IRS Identity Protection PIN at IRS.gov, sign up for credit monitoring, and watch your accounts for suspicious activity.

Legitimate Tax Debt Relief Options vs. Scams

The IRS offers real options for tax debt: an offer in compromise, short-term payment plans (up to 180 days), and long-term payment plans (three to 10 years). Apply for these directly with the IRS.

IRS programs vs. tax relief scams

Freedom Debt Relief works with credit card, medical, and personal loan debt, but tax debt doesn't settle the same way. Freedom Debt Relief doesn't provide tax debt services. Learn how Freedom Debt Relief works to find out if it's the right fit for other debt.