Recent FTC Complaint Shows Taxpayers were Victims of IRS Collection Scheme

By Matthew L. Roberts on December 19, 2025

Overview

Notices of Federal Tax Lien (NFTLs) are public records and can be used by scammers. A recent Federal Trade Commission (FTC) complaint highlights how some individuals may use public NFTL filings to target taxpayers, pretending to be government agents to sell debt relief services. Key allegations in the complaint remind taxpayers not to accept information at face value.

Key Allegations

1. After the IRS filed NFTLs, the defendants sent mailers that looked official, demanding payment and threatening property seizure. Callers were pitched tax relief services.

Reminder: If you receive communications from the IRS, make sure you verify the IRS agent’s name, badge, phone number, and mailing address. Compare the mailing address to publicly searchable information to verify. If unsure, call an IRS official number, visit an IRS office, or seek assistance from the Taxpayer Advocate Service (TAS).

2. Defendants misled taxpayers by promising to settle debts for “pennies on the dollar” before evaluating their cases.

Reminder: The IRS has rigorous and demanding procedures that taxpayers must follow prior to entering into an offer in compromise. Guarantees are not possible without reviewing financials (which the IRS will ask for), and “pennies on the dollar” settlements are rare.

3. Defendants did little work after receiving payments from taxpayers, often citing “case management turnover” for delays.

Reminder: Taxpayers must meet strict IRS deadlines to have important opportunities to raise collection alternatives or defenses, particularly before actual collection begins. Taxpayers should choose experienced representatives familiar with IRS collections and procedure.

Conclusion

Take IRS collections seriously and vet third-party representatives carefully. The FTC complaint underscores the need for due diligence in finding help with IRS matters. For questions on this blog or other tax-related matters, contact mroberts@meadowscollier.com.

A full copy of the FTC complaint can be found here.