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Woman says she paid tax relief company $54,000 but still owes IRS

CHARLOTTE — One woman says the IRS reached out two years ago saying she owed taxes, but she says she wasn’t clear how much she owed.

We’ll call her Joan. She asked not to share her face or name, embarrassed she spent so much looking for tax relief.

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Joan said she wasn’t about to mess around with a tax issue, so she researched tax relief companies online.

“I tried to vet the one as best I could, couldn’t find really anything negative about them so I decided to go with them,” she said.

She says that company was Tax Network USA. She says they told her she owed the government more than $100,000, but that they could help get it knocked down. She says she had to pay $54,000 up front.

Fast forward to this month. She says they still haven’t helped her erase “any” of her debt. She says she still owes the IRS, and she learned that she never owed six figures. The most she owed, she says, was in the $30,000 range, lower than the $54,000 she says she paid the company.

Action 9 asked her, “Do you know what they’ve been doing the last two years for you?”

“No,” Joan replied. “They say it takes a long time to deal with the IRS.”

One bright spot: she says the IRS has been patient with her, and she’s not in more trouble.

At last check, the Better Business Bureau gave Tax Network USA an A+ rating, but counted 155 complaints in the last three years. Action 9 emailed the business two weeks ago and followed up by phone Tuesday. No one responded in time for this report.

The FTC says, a lot of times, tax relief companies “leave you even further in debt.”

Action 9 attorney Jason Stoogenke says if you owe taxes:

  • Ask the IRS, or state Dept. of Revenue, about payment plans and even compromises over the dollar figure.
  • Be suspicious if a business guarantees results or says you qualify for a tax relief program. Only the government can tell you that.
  • Don’t pay their entire fee upfront.
  • Start with what’s called the Taxpayer Advocate Service. It’s an independent organization within the IRS that can help with your options: 877-777-4778
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