Is Blue Tax service a ripoff?
Has anybody used Blue Tax tax relief services? I used a different service about 7 years back and was ripped off and now I have a friend who is in tax trouble and is thinking of using them but I'm worried.
Has anybody used Blue Tax tax relief services? I used a different service about 7 years back and was ripped off and now I have a friend who is in tax trouble and is thinking of using them but I'm worried.
Comments
Any outfit that claims or implies that they can settle tax debts for "pennies on the dollar" is pretty much a scam. Many of them have been put out of business and their staff debarred from preparing tax returns for anyone but themselves. You haven't seen any of those annoying Roni Deutsch ads lately, and now you know why.
Keep in mind that there are 100 pennies in a dollar. If they get you a payment plan to pay in full, they have delivered on the "pennies on the dollar" promise although it didn't save you a dime. You could set up a payment plan yourself for as little as $52.
A local EA would be a much better pick. They will honestly evaluate your situation and advise you on your options without requiring massive up-front fees.
==== do not use the blue tax service == if your friend wants to have tax relief then it is best to plead the case at the IRS and tell them what monthly payments can be made to relieve the burden and debt. ANY tax service will not be able to resolve the problem and it is better to face the music and be upfront than to hide behind a scam tax and then be dragged into court ..... and the scam tax people will not be found and will not represent the tax victim in court ....
When hiring any tax solution firm, you need to do your research on the firm. Most importantly, look at reputable sights like the BBB and Trustlink. Many of the comments made about companies on sites such as rippoff report or complaints board our made by competitors. The BBB is the only watch dog group that actually verifies the legitimacy of the claim and confirms that the complaint is an actual client. Tha being said, Blue Tax had a good rating.
Yes.
I read that the people who started Blue Tax are all from American Tax Relief (ATR). ATR was shut down by the federal government a couple of years ago.
They do appear to be a scam. Most of these "tax relief" companies are. There is nothing that they can do for you that you cannot do for yourself. If you aren't comfortable handling the issue yourself, you can hire a local enrolled agent or CPA.