|
|
|
|
|
|
Tax Fraud
Credit Counseling Scams
Complaints about credit repair companies have been increasing during the last few years. That's why the IRS joins consumer watchdogs in urging taxpayers to
thoroughly check out credit counseling agencies before signing up for any program. And don't be swayed simply because a counseling service advertises itself
as not-for-profit. Many credit repair organizations do provide valuable financial counseling and education and are legitimate nonprofit groups. But others
fail to meet federal tax-exempt standards.
The IRS's Exempt Organizations office continues to examine consumer credit organizations to ensure that they operate in a legitimately tax-exempt manner. And
the agency warns consumers to be wary of quick fixes, whether during tax-filing season or year round, that could actually drive them deeper into debt.
Credit Counseling Scam Red Flags
The following claims should raise red flags immediately:
- Credit problems? No problem!
- We can erase your bad credit ? 100% guaranteed.
- Create a new credit identity ? legally.
- We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!
Remember, it's easy for someone to make a claim if they don't intend to follow through on their promises. In the end,
you're still responsible. Luckily, there are even more ways to tell the legitimate credit counselors apart from the
ripoff artists.
Even More Credit Counseling Scam Warning Signs:
- companies that want you to pay for credit repair services before they provide any services.
- companies that do not tell you your legal rights and what you can do for yourself for free.
- companies that recommend that you not contact a credit reporting company directly.
- companies that suggest that you try to invent a "new" credit identity - and then, a new credit
report ? by applying for an Employer Identification Number to use instead of your Social Security number.
- companies that advise you to dispute all information in your credit report or take any action that
seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you
may be subject to prosecution.
Related Tax Fraud Links:
IRS Free Online Filing
The "Dirty Dozen" Tax Scams
Tax Scams - How to Recognize and Avoid Them
|
|
|
|
|
|
|
This site is protected under both U.S. Federal copyright law and international treaties. No part of this site,
including text, layout or images, may be reproduced or copied in any form or by any method.
|
