Released on: February 20, 2008, 8:20 am

Press Release Author: Howard Schwartz - Communications Coordinator BBB CT

Industry: Non Profit

Press Release Summary: Better Business Bureau Gives "American Tax Relief" Failing
Grade

Press Release Body: Wallingford, CT - Helping Americans reduce back taxes, so called
"tax relief" has become a lucrative industry, but consumers do not always get what
they paid for and can be left to answer to the Internal Revenue Service without the
expertise or relief for which they paid.

One example is a company called American Tax Relief, which promises to "settle tax
debt for a fraction of the debt," and "remove penalties, interest and tax lien."
More than 150 customer complaints have been filed against this company, which
received an "F" from BBB. Two complaints against the company were filed in
Connecticut since 2005.

Better Business Bureau urges consumers to be careful, since many taxpayers have been
left with their original tax debt, additional interest and penalties.

According to Better Business Bureau Connecticut President Paulette Hotton, the so
called tax relief companies overstate their ability to help clients.

"Consumers complain that many of these firms exaggerate or misrepresent their
ability and expertise in effecting settlements and often promise much more than they
can deliver," says Hotton.

"They generally attribute their inability to obtain settlements on the fact that the
customer provided inaccurate or incomplete information."

In fact, none of the firms guarantee that anyone will be able to obtain a settlement
of their tax debt. In one case, a consumer paid American Tax Relief $3,900 and
sent them a form giving the company power of attorney to represent her. When she
checked, the I.R.S. had no record that American Tax Relief represented her, and the
company refused to refund her money.


"We urge caution," add Hotton. "Many taxpayers have been left with the original tax
debt, along with additional interest and penalties. "

If you have a tax debt with the I.R.S., Better Business Bureau suggests you first
seek the advice of an I.R.S. enrolled agent, CPA, or a tax attorney. You may also
consult with the I.R.S. to determine if you would qualify to file for an offer in
compromise, or some other type of payment arrangement. The I.R.S. says only these
professionals can represent you in tax matters.

To learn about the I.R.S. rules for an offer in compromise, visit the Internal
Revenue Service web site. You may check on the credentials of tax relief firms at
the Better Business Bureau web site.


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Web Site: http://www.bbb.org

Contact Details: Howard Schwartz - Communications Coordinator
Better Business Bureau Connecticut
94 South Turnpike Rd.
Wallingfoird, CT 06492
203-269-2700 ext 103