Are you looking for the right tax relief services company? Among the pool of many, it is difficult to find yourself a company that is there to genuinely help you out with your tax issues. However, with the right knowledge and tips, you can weed out the scam artists and connect with the companies that offer legitimate taxation services. Here are some factors that will help you determine which tax relief service is right for you and how to choose one:
1. Offer in Compromise in Tax Relief Services
In your attempt to find out the best tax relief services, you might come across people who will promise you reduced owed amounts and guaranteed settlement through the OIC. If you see the firm guaranteeing you an offer in compromise settlement, it’s a red flag. There is no tax relief service that can guarantee you an OIC settlement. The IRS first assesses your eligibility for an OIC settlement and then decides if you deserve it or not. It doesn't hand out OIC to just anyone.
2. Interest and Penalties
Another red alert is when a tax relief service company tells you that by hiring them, your interest and penalties will be stopped. The truth is that as long as you have due balance, the interest will run. Yes, some penalties can get abated. But you have to know that just because you hired a professional tax relief service, you can’t stop paying or filing your taxes without facing the consequences. Genuine tax professionals claim to help you reduce your interest and penalties to the minimum, not to stop them.
3. The Person Working on Your Case
All the tax resolution firms are required to have licensed attorneys, CPAs, and Enrolled Agents (EAs). This should not be seen as a selling point. There are many firms that don’t get licensed tax professionals for the beginner’s stage. What you have to look out for is who is handling your case during the consultation and proposal stage.
4. Researching Before Hiring a Tax Relief Services
If the tax relief service is trying to get you to sign the power of attorney or work agreement or get you to pay the money in a hurry, be more careful. It might mean that they are hiding something. You need sufficient time to research the company before you make the payment. If the tax relief services have sent you a contract or proposal to start the work, make sure that they have added evidence of their personal license. Before agreeing to anything, take the time to research. It can protect you from untold frustrations and save you hundreds and thousands of dollars.
5. Multiple testimonials and reviews
Check out the tax relief services on the Better Business Bureau. They have the ability to track and report complaints from different verified customers. You can also check out online reviews and talk to other people who have used the same tax relief service. Taking recommendations from people you know and learning from their experiences is the best way to know about the tax relief services.
6. Promises - Tax Resolutions
While approaching a potential client, some sales consultants make big promises on behalf of the tax relief service. You should be skeptical of them. A tax relief company that can tell you ‘no’ when asked for guaranteed results shows signs of ethics, honesty, and knowledge. There is no tax expert that can guarantee to eliminate the majority of your tax debt. A good tax expert will spend a lot of time explaining why you are not eligible for a reduced settlement.
The basic point is, it sounds too good to be true, it most probably is. You don’t want to work with a tax relief service that over-promises and under-delivers.
7. Flat-fee in Hiring a Tax Resolution Services
This is a major factor that you should take into consideration while selecting the right tax relief service for you. Look for any fixed hidden charges that you might need to pay later. Make sure that you pay close attention to the fine print in the work agreement. What you will see in the contract are a few sentences that state that the company has the right to charge more money from you.
8. Green Card for US Citizen
A green card is a document that enables a non-citizen to live permanently in the United States. Many individuals from outside the United States desire a green card since it allows them to live and work (legally) anywhere in the United States for three or five years and then apply for a USA Green Card.
9. Ethics and Character Tax Relief Services
This is a very simple factor. You can get an idea of their true character by knowing about their involvement with the community. For example, when they are working with charities, doing pro-bono work, and other acts of ethical behavior on a corporate level. These signs show that the organization works for the betterment of the community.
On that note, if any sales consultant is telling you or implying that they have some special connections with the IRS or they get preferential treatment from the Revenue Officers, you have to run the other way. Not only are they lying but are in direct violation of the guidelines issued by the US Department of Treasury. According to this, there are some legal issues associated with practicing before the IRS that include marketing practices. If the tax relief service is willing to bend the law for earning your business, their moral compass and ethical standards come into question.
When you are looking for a tax relief service, you might meet with many sales consultants. Some of them will claim that their company has been in business longer than they actually are. Then, there will be some who are bragging about their combined years of experience. This does not work in your favor at all. It is because you won’t have 20 people working on your case, just 1 or 2. To get an exact idea of how long the company has been around, you can check them on the BBB’s website. To get a precise date, you can check the website of the Secretary of State where the company is located.
Now that you know-how, you can find the best tax relief services for you. With just a little bit of knowledge and research, you can easily find out if the tax relief company is right for you. Make sure that you have a few conversations with them before you sign them on. Investing a small amount of time in finding the right service will ensure that you are in good hands.
Frequently Asked Questions About TAX RELIEF SERVICES
On average, individual taxpayers pay $1,000-$5,000 for tax debt relief services. Taxpayers with a complex situation may end up paying up to $6,000 or more.
Yes. A legitimate, reputable tax relief company can help you reduce your tax debt or negotiate a deal with the IRS on your behalf. When searching for a tax relief company, watch out for scammers. Do your research.
Before hiring a tax relief company, check the provider’s track record. Be wary of companies that make unrealistic claims (such as helping you avoid penalties and interests).
Remember, if it sounds too good to be true, it probably is.
Yes. A tax debt relief company will help you explore your tax relief options. A reputable tax relief company employs experienced tax lawyers who negotiate settlements and payment agreements with the IRS on their clients' behalf. Your tax relief company will also help lower your tax liability (business or professional).
Introduced in 2008, the IRS Fresh Start Program helps individuals and businesses pay off tax debts affordably over six years. Taxpayers who owe less than $50,000 of taxes qualify for this.
Qualifying taxpayers must make a payment every month based on their current income and the value of their liquid assets.
By the end of six years, the taxpayer should pay off the debt in full. The program helps avoid interests, tax liens, penalties, wage garnishments, and seizure of assets.
The IRS rarely forgives tax debt. If you show that you are experiencing financial hardship, the IRS may accept a compromise.