Why You’re Getting Tax Debt Relief Calls

Your information is publicly available or has been sold

• One of the primary reasons you’re getting tax debt relief calls is that your contact information has been obtained through legal—though often ethically questionable—means.

• Data brokers compile massive databases of consumer information from public records, online activity, survey responses, warranty registrations, and countless other sources. This information is then packaged and sold to companies looking for potential customers.

• If you’ve ever filled out an online form, entered a sweepstakes, signed up for a “free” service, or even just browsed certain websites, your information may have been captured and sold.

• Many people unknowingly consent to having their data shared when they quickly click through terms and conditions without reading them carefully.

You’ve interacted with tax-related content online

• Modern marketing relies heavily on behavioral tracking. If you’ve searched for information about tax problems, visited websites about IRS debt, or engaged with tax-related content on social media, algorithms flag you as someone potentially interested in tax relief services. This digital footprint can trigger targeted advertising campaigns that include phone calls.

• Even something as innocent as researching how to file your taxes or reading an article about tax deductions can put you on a marketing list. Companies use sophisticated retargeting techniques that follow you across the internet and eventually convert your online activity into phone contact.

You may have actually had a tax issue in the past

• If you’ve previously had tax problems, filed for an installment agreement with the IRS, or had a tax lien placed against you, this information can become part of public records. Companies specializing in tax debt relief actively mine these records to find potential clients. Even if you resolved your tax issue years ago, you might still be on these lists.

• Tax liens, in particular, are public records that are easily accessible. Before the IRS changed its policies in 2018 to reduce the filing of tax liens, these records were routinely used by tax relief companies to identify prospects. Historical data from that era continues to circulate in marketing databases.

Random dialing and robocalls

• Sometimes there’s no complex explanation—you’re simply the victim of random or sequential dialing. Many tax debt relief operations use automated systems that dial thousands of numbers daily, often working through entire area codes or exchanges. If your number falls within their range, you’ll get a call regardless of whether you have any tax issues.

• Robocall technology has made it incredibly cheap for companies to place massive volumes of calls. These systems can place hundreds of calls simultaneously, connecting successful calls to live operators only when someone answers. The low cost per call means companies can afford to contact people indiscriminately.

Red flags of tax relief scams

Understanding the warning signs of fraudulent calls can protect you from becoming a victim. The IRS itself has identified tax-related scams as one of its “Dirty Dozen” tax schemes, and they’ve provided clear guidance on what to watch for.

• First and foremost, the IRS will never initiate contact with you by phone about taxes you owe. If someone calls claiming to be from the IRS and demanding immediate payment, it’s a scam, period. The IRS’s first contact is typically through official mail correspondence. They don’t call out of the blue to demand money, threaten arrest, or require payment through specific methods like wire transfers, prepaid debit cards, or cryptocurrency.

• Other red flags include high-pressure tactics demanding immediate action, threats of arrest or deportation, claims that you must pay without the opportunity to question or appeal the amount owed, and requests for payment information over the phone. Scammers often spoof caller ID to make it appear they’re calling from an official government number, so you can’t rely on caller ID alone to verify legitimacy.

• Be extremely wary of any caller who claims they can guarantee a specific outcome, such as settling your debt for pennies on the dollar. Tax resolution is a complex process, and no legitimate company can promise specific results without thoroughly reviewing your financial situation. Similarly, any company that asks for large upfront fees before providing services is likely operating unethically, if not illegally.

What legitimate tax relief companies look like

While most unsolicited calls are problematic, legitimate tax relief companies do exist. These companies typically don’t make cold calls but instead work through referrals, online marketing, or respond to inquiries from people actively seeking help. They employ licensed tax professionals, such as Certified Public Accountants (CPAs), Enrolled Agents (EAs), or tax attorneys who are authorized to represent taxpayers before the IRS.

• A legitimate company will want to conduct a thorough review of your tax situation before making any promises. They’ll ask for documentation, review your income and expenses, and provide a realistic assessment of your options.

• They’ll also be transparent about their fees, which are typically based on the complexity of your case rather than a percentage of your supposed “savings.”

• Professional tax relief companies are also registered with appropriate regulatory bodies and maintain proper credentials. You can verify an Enrolled Agent’s credentials through the IRS’s Enrolled Agent database, check a CPA’s license with their state board of accountancy, or verify an attorney’s license with their state bar association.

The real cost of engaging with these companies

Even if a tax relief company isn’t an outright scam, engaging with them can be costly and often unnecessary. Many companies charge thousands of dollars for services that you could potentially handle yourself or obtain for much less through other channels.

The tax relief industry has faced significant scrutiny and regulatory action over the years. The Federal Trade Commission has shut down numerous companies for deceptive practices, and many states have enacted laws specifically targeting abusive tax relief operations. Common problems include companies taking large upfront fees and then doing little or no work, making promises they can’t keep, and leaving clients worse off than when they started.

Moreover, working with an unqualified or unethical company can actually damage your relationship with the IRS. If a company files frivolous claims on your behalf or fails to respond to IRS communications in a timely manner, you could face additional penalties and interest on top of your original debt.

Immediate actions to stop the calls

When you receive an unwanted tax debt relief call, your first instinct might be to simply hang up, and that’s certainly a valid response. However, there are more effective steps you can take to reduce future calls:

1. If you’ve answered the call, clearly state that you want to be placed on the company’s do-not-call list. Under the Telephone Consumer Protection Act (TCPA), companies are required to maintain do-not-call lists and honor removal requests.

2. Document the date, time, company name (if provided), and the number that called you. If calls continue after you’ve requested removal, this documentation becomes valuable evidence.

3. For your smartphone, take advantage of built-in call blocking and spam filtering features. Both iOS and Android devices offer native tools to block numbers and filter calls from unknown senders. These features have become increasingly sophisticated and can significantly reduce the number of unwanted calls that actually ring through to your phone.

4. Consider using your carrier’s spam-blocking services. Major carriers like Verizon, AT&T, and T-Mobile offer free and premium spam-blocking services that identify and filter suspected spam calls before they reach you. Third-party apps like RoboKiller, Nomorobo, and Hiya provide additional layers of protection with regularly updated spam number databases.

Register with the National Do Not Call Registry

If you haven’t already, register your phone number with the National Do Not Call Registry at donotcall.gov or by calling 1-888-382-1222 from the phone you want to register. This free service is managed by the Federal Trade Commission and legally prohibits most telemarketing calls to your number.

It’s important to understand that the Do Not Call Registry isn’t a complete solution. The registry doesn’t prevent calls from political organizations, charities, telephone surveyors, or companies with which you have an existing business relationship. Additionally, scammers often ignore the registry entirely since they’re already breaking the law. However, registering still reduces legitimate marketing calls and provides you with stronger legal standing when reporting violations.

After registering, you need to wait up to 31 days for the registry to take full effect. Once that period has passed, any unwanted marketing calls you receive become potential violations that you can report.

Report violations and scams

Reporting unwanted calls serves two purposes: it helps authorities track and prosecute bad actors, and it contributes to databases that help spam-blocking services identify problematic numbers.

• Report unwanted calls to the Federal Trade Commission through their complaint assistant at ftc.gov or by calling 1-877-382-4357. The FTC uses these reports to identify patterns, investigate companies, and bring enforcement actions. While one report might not trigger immediate action, collective reports help build cases against persistent violators.

• If you receive calls that you believe are IRS impersonation scams, report them to the Treasury Inspector General for Tax Administration (TIGTA) at tigta.gov or by calling 1-800-366-4484. You should also report the scam to the IRS by emailing [email protected].

• For particularly aggressive or threatening calls, consider filing a complaint with the Federal Communications Commission (FCC) at consumercomplaints.fcc.gov. The FCC has authority over telecommunications issues and has been increasingly active in combating illegal robocalls.

Consider legal action

If you’re receiving repeated calls despite requesting removal, you may have grounds for legal action. The Telephone Consumer Protection Act provides for statutory damages of $500 to $1,500 per violation. Some consumers have successfully sued companies for TCPA violations, and in some cases, consumer protection attorneys will take these cases on contingency.

Before pursuing legal action, meticulously document every call: date, time, phone number, company name, and what was said. Save voicemails and, if legal in your state, consider recording calls (note that some states require two-party consent for recording). This documentation is crucial if you decide to pursue a legal claim.

If you actually need tax debt relief

If you genuinely have tax problems and need help, there are better ways to get assistance than responding to unsolicited calls:

Work directly with the IRS

• Many people don’t realize that the IRS itself offers various programs to help taxpayers who are struggling with tax debt. The IRS offers installment agreements that allow you to pay your debt over time, currently-not-collectible status for those experiencing financial hardship, and Offers in Compromise for those who genuinely cannot pay their full tax debt.

• You can work directly with the IRS by calling their main phone line at 1-800-829-1040 or visiting a local Taxpayer Assistance Center. The IRS website (irs.gov) has extensive resources about payment options, and IRS representatives can explain your options at no cost.

Seek help from qualified professionals

• If your tax situation is complex or you’re uncomfortable dealing with the IRS directly, seek out qualified tax professionals through proper channels. Ask your personal accountant or CPA for recommendations, consult with an Enrolled Agent who specializes in IRS representation, or speak with a tax attorney if your situation involves potential criminal issues or very large amounts of debt.

• Professional associations like the National Association of Enrolled Agents (NAEA) and the American Institute of CPAs (AICPA) offer directories of qualified professionals. Many tax professionals offer free initial consultations where they’ll assess your situation and explain what they can do to help.

Look into Low-Income Taxpayer Clinics

• If you can’t afford professional representation, Low-Income Taxpayer Clinics (LITCs) provide free or low-cost assistance to qualifying individuals. These clinics are typically run by law schools, legal aid societies, or nonprofit organizations and are staffed by qualified attorneys and volunteers.

• You can find an LITC near you through the Taxpayer Advocate Service website or by calling 1-877-777-4778.

Protecting yourself going forward

Prevention is always better than reaction when it comes to unwanted calls. Take proactive steps to protect your personal information and reduce your exposure to tax debt relief marketing.

1. Be cautious about where you share your phone number online. Read privacy policies before submitting information, and look for opt-out options for sharing your data with third parties.

2. Use a secondary phone number or Google Voice number for online forms and services where you’re required to provide a phone number but don’t want to expose your primary line.

3. Regularly review your credit reports and public records to ensure there aren’t any tax liens or other issues you’re unaware of. Early detection of problems allows you to address them before they become more serious and before they attract unwanted attention from tax relief companies.

4. Consider opting out of prescreened credit offers and data broker lists. You can opt out of prescreened credit offers by visiting optoutprescreen.com or calling 1-888-5-OPT-OUT. While there’s no single opt-out mechanism for all data brokers, services like the Data Broker Opt-Out Guide provide instructions for removing your information from major data broker databases.

5. Finally, stay current with your taxes. The best way to avoid legitimate tax problems—and the illegitimate calls that follow—is to file your returns on time, pay what you owe, and address any IRS correspondence promptly. If you can’t pay your full tax bill, contact the IRS immediately to discuss payment options.