Attorney General Jay Jones Shares Reminder to be Wary of Predatory Practices by Tax Debt Settlement Companies

RICHMOND, Va. – As tax season ends, Virginians are preparing their tax documents and any necessary payments for monies owed to federal and state tax agencies. Attorney General Jones warns Virginians about predatory tactics deployed by tax debt settlement companies to prey on the financially vulnerable get their business.

“Tax debt settlement companies often exploit vulnerable people’s desperation and fear of the IRS while offering reassurances they are in no position to make,” said Attorney General Jay Jones. “These practices are predatory and dangerous. If you or a loved one experience this type of company, I urge you to reach out to my office and we will work tirelessly to hold them accountable.”

Here are examples of claims tax debt settlement companies may make, that taxpayers should be wary of:

• Promising or guaranteeing specific results, such as reducing your tax debt by a certain amount, or percentage (“We’ll settle your debt for 10% of what you owe the IRS!”)

• Promising or guaranteeing a timeline for results. (“This won’t take more than six months!”)

• Making promises about eligibility for settlement without doing a comprehensive review of finances – looking at income, expenses, assets, ability to pay, and more.

• Promising or guaranteeing settlement with the IRS, also known as an Offer in Compromise. An Offer in Compromise is when the IRS agrees to take less than what is owed, but there are very specific qualifications that few people meet.

The Office of the Attorney General reminds Virginians who find themselves owing money on their federal income taxes that there are resources to help them. The IRS will work with you in the repayment process. The Taxpayer Advocate Service, which operates independently within the IRS, provides free services to those who qualify and can help you navigate the agency.

If taxpayers are looking for professional help outside of the IRS, be sure to choose a CPA who is certified to practice before the IRS, or a lawyer who is an active member of the Virginia State Bar.

During the Herring administration the Office of the Attorney General brought a successful enforcement action against a Virginia-based business, Wall & Associates, Inc., and its principals for violating the Virginia Consumer Protection Act for years by misleading and deceiving consumers about specific results, timeframes, and eligibility for settlement relief, among other conduct. The Fauquier County Circuit Court ordered Wall & Associates, Inc. to pay restitution to qualified consumers nationwide and determined it should pay civil penalties to the Commonwealth of $1,588,350, along with attorney’s fees and costs. The Court also found Wall & Associates CEO, P. Mark Yates, had actively participated in the Virginia Consumer Protection Act violations, and determined he should pay $105,890 in civil penalties to the Commonwealth. The case remains pending with the Court to determine the amount of restitution that must be paid.

Virginians who have a question, concern, or complaint about a tax debt settlement company should contact Attorney General Jones’ Consumer Protection Section:

· By phone: (800) 552-9963

· By email: consumer@oag.state.va.us      

· Online Complaint Form

· Contact the Consumer Protection Unit Online

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Published on: April 15, 2026