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Dealing with substantial tax debt can be an overwhelming and anxiety-inducing ordeal, particularly when you’re already facing financial difficulties. Thankfully, there’s professional assistance accessible for individuals who owe thousands of dollars to the IRS.
Tax relief organizations have a team of tax experts who specialize in negotiating various payment alternatives with both the IRS and state tax agencies. These options range from setting up payment plans to temporarily suspending collections during periods of financial hardship, which is known as being classified as “currently not collectible.”
Continue reading to discover more about the top-rated tax relief companies, assessed based on their availability, cost-effectiveness, and feedback from consumers.
Larson Tax Relief – Best Tax Relief Service Overall
Top 10 Picks for Tax Relief Companies
Larson Tax Relief – Best Tax Relief Service Overall
Anthem Tax Services – Best for State Taxes
Community Tax Relief – Most Affordable Fees
Optima Tax Relief – Best for IRS Audit Representation
Tax Defense Network – Best for Bilingual Services
Fortress Tax Relief – Best for Large Tax Debt
Precision Tax – Best for Transparency and Attention
Liberty Tax – Best for Avoiding Tax Debt in the Future
Tax Hardship Center – Best For Tax Preparation
TaxSlayer – Best Tax Relief Software
Larson Tax Relief – Best Tax Relief Service Overall
Larson Tax Relief offers a diverse range of services for businesses dealing with tax issues. These services encompass payroll and federal tax problems, conflicts with revenue officers, and challenges related to worker classification. When it comes to relieving business and corporate tax debt, Larson Tax Relief is an exceptional choice.
The company provides comprehensive assistance for various types of tax debt relief, catering not only to individuals facing IRS tax debt but also offering support for corporate taxes and help in delaying or preventing bank levies.
Apart from receiving numerous positive reviews on customer review platforms, Larson Tax Relief is particularly known for its top-notch business tax services. They have the expertise to handle all aspects of business tax preparation, including the necessary paperwork for payroll taxes and corporate income taxes. This can be especially beneficial for small business owners or those with limited accounting departments who require additional support in managing their taxes effectively.
Pros
New customers enjoy a 15-day money-back guarantee
Assistance provided for intricate business tax matters, including tax liens or accounts receivable levies
Free consultations available
Cons
The 15-day guarantee might not be sufficient for significant tax debt concerns
Bilingual service is not provided
A minimum tax debt of $20,000 is mandatory
>> Use Larson Tax Relief for Best Tax Relief Service >>
Larson Tax Relief – Best Tax Relief Service Overall
Anthem Tax Services provides a comprehensive range of services that cater to both individuals with IRS tax debt and businesses seeking corporate tax preparation. The company specializes in assisting clients in the application process for various IRS tax debt relief programs, such as offers in compromise (OIC), innocent spouse relief, and achieving a “currently not collectible” status.
What sets Anthem apart from its competitors is its unique offerings of assistance with filing for wage garnishment and securing tax levy release. These services are not commonly provided by other companies in the industry.
One notable aspect of Anthem’s service is its exceptional money-back guarantee. They will refund your entire payment if they fail to secure any form of resolution from the IRS, whether it be a reduction in payment amounts or even complete debt forgiveness. However, it should be noted that this guarantee does not cover the initial investigation fee, which starts at $350 depending on your case’s specific details.
Pros
Unlimited money-back guarantee
A few customers have shared instances of case resolution in as few as seven days
Specialized tax relief services[c] designed for truck drivers
Cons
Customers have expressed dissatisfaction with communication in cases extending beyond one week
Community Tax Relief – Most Affordable Fees
Community Tax provides complimentary consultations and budget-friendly investigation fees that range from $295 to $500.
The primary focus of Community Tax is on relieving IRS tax debt, although they do provide limited assistance with state taxes. Similar to other companies in this industry, Community Tax handles various applications, including installment agreements and offers in compromise, but they do not offer innocent spouse relief.
What sets Community Tax apart from others on our list is their ability to offer bilingual support both online and through their representatives. In addition to tax debt relief services, they also provide tax filing, bookkeeping, and business accounting services.
Consultations are free of charge, and their A+ rating with the BBB is backed by numerous positive reviews as well as a prompt response time for customer complaints.
Pros
Services available in both languages
Reasonably priced initial fees
Tax planning services aimed at minimizing the chances of future tax problems
Cons
Lack of upfront fee details
Restricted options for state tax debt relief
>> Use Community Tax Relief >>
Optima Tax Relief – Best for IRS Audit Representation
With its exclusive mobile application, Optima stands out as the industry leader for tax assistance. This app enables users to file a tax extension without any charge and provides guidance on handling IRS notices.
Optima Tax Relief offers a comprehensive range of services, addressing various IRS and state tax relief options such as payment plans and “currently not collectible” filings. The company boasts a diverse team of tax professionals, including enrolled agents, tax attorneys, and CPAs.
One notable feature of Optima is its proprietary app which allows individuals to access complimentary evaluations for any collection notice received from the IRS. Additionally, it assists users in applying for an extension on their tax filing deadline.
By combining cutting-edge technology with expert knowledge, Optima ensures that taxpayers receive the support they need to manage their taxes effectively.
Pros:
Exclusive app offers a complimentary assessment of collection notices
Free consultations provided
Clearly defined tax resolution process sets realistic expectations for case outcomes
Cons:
A minimum tax debt of $10,000 is necessary
The 15-day money-back guarantee is shorter than that of competitors
>> Consider Optima Tax Relief >>
Tax Defense Network – Best for Bilingual Services
Tax Defense Network is renowned for its unmatched bilingual customer service, catering to both Spanish and English speakers. The company prides itself on providing support online and over the phone. In addition to their exceptional language assistance, Tax Defense Network has a competitive edge by accepting tax debt as low as $5,000, making their services accessible to a wider range of individuals compared to other competitors.
Like other companies in the industry, Tax Defense Network offers various IRS and state tax debt relief options such as payment plans, offers in compromise, and innocent spouse relief. However, what sets them apart is their specialization in business tax solutions. They offer specific services like closing corporate filing for businesses that need permanent closure.
Moreover, the Tax Defense Network surpasses its competitors when it comes to educational resources. With comprehensive tools like offer-in-compromise calculators and tax withholding calculators at clients’ disposal, they empower taxpayers with valuable information.
Overall, Tax Defense Network’s commitment to bilingual services, coupled with their diverse range of specialized solutions, make it the top choice for taxpayers seeking reliable and efficient tax relief assistance.
Pros:
Extensive array of services for tax debt relief and preparation
Comprehensive tax education resources available
Fully bilingual services offered
Cons:
A 3-day money-back guarantee is provided
>> Consider Tax Defense Network >>
Fortress Tax Relief – Best for Large Tax Debt
Tax relief companies often charge fees based on a percentage of the total tax debt owed to the IRS. This can result in significant costs, regardless of the actual time required to resolve a high-debt case. For instance, a $20,000 debt may not necessitate twice as much work as a $10,000 debt.
Fortress Tax Relief takes a unique approach by providing quotes that are based on estimated time requirements. The hourly rates for attorneys vary, with typical rates for Enrolled Agents (EAs) falling between $100 and $200 per hour.
As a consumer with substantial tax debt, this means you will likely pay considerably less compared to percentage-based tax relief companies. However, it’s always recommended to obtain multiple quotes from different firms for comparison purposes.
Fortress Tax Relief offers a range of advantages, one of which is its extensive customer service guarantee. In the event that you have an ongoing case, their customer service team ensures prompt responses to your phone calls and emails within two business days. Should they fail to meet this commitment on multiple occasions, they will provide you with a $100 account credit for each subsequent incident.
Pros:
No fee structure based on a percentage
Provides a monetary guarantee for customer service
Addresses state tax debt in all 50 states
Cons:
Requires a minimum tax debt exceeding $10,000
Lacks accreditation from industry organizations
Limited business services available
>> Consider Fortress Tax Relief >>
Precision Tax – Best for Transparency and Attention
Precision Tax Relief has emerged as a leading tax relief company, surpassing others in various aspects, according to our analysis. The standout feature is their 30-day money-back guarantee, which is one of the longest in the industry.
When it comes to pricing, Precision Tax Relief adopts a flat-rate fee system that is determined during a complimentary consultation. Rest assured that your fee will only increase if there are changes in the scope of work due to new information not disclosed during the initial consultation. Payment options are flexible, allowing you to choose between making a single lump-sum payment or opting for a zero-interest payment plan.
Unlike some other companies, Precision Tax Relief does not impose a minimum debt requirement on its clients. However, we discovered through conversations with their customer service department that their base service fee may not be justifiable for taxpayers who owe less than $10,000 without any additional factors at play. Additionally, Precision Tax Relief only takes on cases where potential debt relief outweighs client service fees.
Pros:
Provides a 30-day money-back guarantee
Utilizes an all-inclusive flat-rate fee
Customer service is accessible via phone, text, email, and live chat
Established in 1967
Cons:
Does not manage standalone state tax debt
Lacks representation for tax audits
Limited availability of online resources
Liberty Tax – Best for Avoiding Tax Debt in the Future
While Liberty Tax’s services extend beyond tax debt relief, the company offers a diverse array of preparation tools to assist individuals in avoiding future liabilities. With the digitalization of the tax relief industry and more people filing their own returns, many find themselves facing difficulties.
Liberty Tax stands out as one of the top tax relief companies due to its ability to help individuals completely avoid debt through services such as free tax return reviews, online and in-person filing support, and much more.
Given that Liberty Tax primarily focuses on preparation services, it entrusts its tax debt relief services to Community Tax, a reputable provider. Community Tax is well-known for offering comprehensive programs designed to address federal and state tax debts, including wage garnishment, tax liens, payroll taxes, extensions, and other related matters.
Pros:
Fast-loading pages
Includes coverage of self-employment topics
Effective review process
Outstanding mobile access
Cons:
Below-average user experience
Inadequate help content
Limited context-sensitive help
Some non-traditional navigation
Tax Hardship Center – Best for Tax Preparation
Tax Hardship Center has earned a spot on this list thanks to the excellent feedback it has received from customers on the Better Business Bureau (BBB). They specialize in assisting with various tax-related challenges, including tax liens, penalties, overdue taxes, payroll taxes, and wage garnishments.
In addition to their expertise in resolving tax issues, Tax Hardship Center also offers a comprehensive range of tax preparation services. Whether you need help filing past returns or managing your current tax obligations as an individual or business owner, they have you covered.
What sets Tax Hardship Center apart is its commitment to customer satisfaction. They offer a 14-day money-back guarantee for their services. If you find yourself unsatisfied within the first two weeks of working with them, they will refund all the fees you paid. Furthermore, there’s no maximum limit on the amount of tax debt they can assist with.
Pros:
Complimentary consultation
Tax preparation services offered
No minimum tax debt requirement
Cons:
Requires a minimum debt of $10,000
14-day money-back guarantee
>> Consider Tax Hardship Center >>
TaxSlayer – Best Tax Relief Software
In 1965, TaxSlayer started its venture as Rhodes-Murphy & Co. in Augusta, Georgia. Gradually, it transitioned from offering traditional tax preparation services to creating specialized tax software for professionals in the field. TaxSlayer currently provides easy-to-use tax software that enables individuals to conveniently file their taxes from the comfort of their homes.
Accruing additional taxes, penalties, and interest can lead to a situation of tax debt which can be both complicated and distressing when dealing with the Internal Revenue Service (IRS). However, TaxSlayer is dedicated to providing assistance during this challenging period.
Pros:
Empower yourself with a do-it-yourself method for tax relief
Access budget-friendly pricing options
No minimum debt threshold required
Cons:
Absence of refunds for program usage
Learning curve associated with using the software may require some time
Mixed and low online ratings
Our Ranking Methodology for the Best Tax Relief Services
In our quest to find the top tax relief company, we undertook the task with great care and precision. Understanding the importance of selecting a reliable and dependable tax relief company, we created a thorough set of criteria that considered several crucial factors. Below is an overview of the criteria we utilized to determine the best tax relief companies available.
Reputation and Credibility: In my decision-making process, I placed significant emphasis on the company’s standing and trustworthiness within the industry. Factors such as the duration of the company’s operation and evidence of a positive track record were considered. Crucial to this evaluation were reviews, testimonials, and ratings from reliable sources.
Licensing and Accreditation: Prioritizing companies possessing proper licensing and accreditation from relevant regulatory bodies was paramount. A credible tax relief company should hold the necessary licenses to operate within the tax resolution industry. This criterion ensured adherence to industry standards and regulations.
Expertise and Qualifications: The qualifications and proficiency of the company’s staff, including tax attorneys, enrolled agents, and certified public accountants, were of utmost importance. We scrutinized the educational background, certifications, and experience of the professionals to ensure they possessed the skills required to handle intricate tax issues.
Range of Services: The evaluation encompassed an assessment of the services provided by each tax relief company. Optimal companies were expected to offer a comprehensive range of services, including tax negotiation, IRS audit representation, penalty abatement, tax lien and levy assistance, and in-compromise services. A diverse service portfolio demonstrated the company’s capability to address various tax-related challenges.
Customized Solutions: Preference was given to companies offering personalized solutions tailored to meet the unique needs of each client. A one-size-fits-all approach was deemed unacceptable; instead, the company needed to evaluate each client’s situation individually and devise a strategy accordingly.
Transparent Pricing: The transparency of pricing structures was a critical consideration. We sought companies that presented clear and upfront pricing without hidden fees or surprises. This transparency was crucial in instilling confidence in clients that they were receiving a fair deal.
Customer Service and Communication: Exceptional customer service was a key criterion. The responsiveness and accessibility of the company’s representatives were evaluated. Prompt communication and a commitment to keeping clients informed throughout the process were highly valued.
Success Rate: The company’s success rate in resolving tax issues for clients was taken into account. A high success rate indicated a robust track record of achieving favorable outcomes for clients.
Ethical Practices: Adherence to ethical standards in dealings with clients and tax authorities was non-negotiable. Any history of unethical practices served as a red flag.
Client Satisfaction: Finally, client feedback and testimonials were reviewed to gauge overall satisfaction. Positive reviews and testimonials from previous clients provided valuable insights into the company’s ability to fulfill its promises.
>> Use Larson Tax Relief for Best Tax Relief Service >>
Best Tax Relief Services – Buyer’s Guide
What Is Tax Relief?
Tax debt relief encompasses various strategies and measures designed to assist individuals in paying off or decreasing their tax obligations.
Originally, the term referred to policies that aimed to alleviate the tax burden for both businesses and individuals. However, it now commonly includes payment plans, settlements (referred to as offers-in-compromise), and wage garnishments.
While similar plans are offered by state and federal tax collectors, regulations at the local level can differ significantly. It’s crucial to consult your state’s comptroller’s office for specific options that are available in your area.
It’s worth noting that negotiating these options directly with the IRS is possible for anyone. Nevertheless, there may be circumstances where hiring professionals proves to be beneficial as a worthwhile investment.
Tax relief companies, also referred to as tax resolution firms, leverage their expertise in federal and state regulations to thoroughly examine your paperwork and financial circumstances in order to determine the most suitable solution.
This typically involves handling the necessary documentation and engaging with the IRS on your behalf. Certain companies even have tax attorneys who can serve as intermediaries during negotiations with the government, particularly when dealing with intricate cases.
How Do Tax Relief Companies Work?
Tax relief companies work with the IRS on taxpayers’ behalf to reduce the amount of back taxes owed. However, it’s worth noting that you can do pretty much everything that tax relief companies do by speaking directly with the IRS.
The key difference is that good tax relief companies employ professionals with years of experience, well-versed in tax law, who can more easily navigate complicated cases involving higher debt amounts.
For instance, if your tax debt issues are a matter of missing last year’s tax payments, you might be better off simply reaching out to the IRS yourself, as there’s little these companies can do that you can’t.
However, if your tax debt case involves multiple bank accounts, assets, years of unpaid taxes, and other particulars that complicate your tax situation, a tax relief company can help by sorting through your paperwork and identifying the best options available. In very rare cases, they could even identify things that the IRS missed and negotiate a lower tax bill.
If you owe less than $10,000 in taxes, it may be more beneficial for you to negotiate directly with the IRS. Many tax relief companies require a minimum debt of $10,000 or more. Additionally, if your debt is below that amount, it might be wiser to pay the IRS in installments instead of adding to your overall debt by using tax relief services.
It’s important to note that everyone’s circumstances are unique. If you believe you need assistance with your taxes, regardless of the amount owed, there are many tax relief firms that offer a complimentary consultation to help get you started.
>> Use Larson Tax Relief for Best Tax Relief Service >>
Common Tax Problems
Tax issues encompass various problems that arise from errors made while filing taxes or neglecting to file altogether. Here are several explanations of prevalent tax concerns that can be addressed by tax relief firms on your behalf.
Back Taxes
Owing back taxes can arise from either failing to file tax forms or making errors during the filing process. This can lead to the accumulation of interest, resulting in an overwhelming amount of tax debt. To stay informed about current penalty interest rates, it’s crucial to regularly visit the IRS website as they update this information quarterly.
Utilizing tax preparation software is highly recommended to prevent the burden of back taxes. If you require assistance with your tax filing, our article on top-notch tax software provides valuable insights and guidance.
Wage Garnishments
When the time comes to pay your tax bill, the IRS will send you a sequence of collection notices. Should you choose to disregard these notices for an extended period, the IRS may opt to obtain portions of your debt directly from your wages by garnishing a fraction of them.
To determine the amount of your wages that is protected from garnishment based on factors such as marital status and number of dependents, your employer consults Publication 1494. Normally, garnishment persists until the debt is fully paid off; however, tax relief companies could potentially assist by establishing alternative payment arrangements.
Tax Liens
Just like wage garnishment, the IRS issues a public notice to financial institutions and other relevant parties. This notice asserts their authority to collect any proceeds from the sale of personal property prior to other creditors.
Tax Levies
In a more extreme form, a tax levy is when the IRS exercises its legal authority to take possession of your assets in order to settle your outstanding debt.
Tax Audits
In the event that your tax returns show any inconsistencies, the IRS has the option to conduct an audit on you. Although audits can happen to anyone, individuals with higher incomes, particularly those earning $10 million or above, have a greater chance of being audited.
>> Use Larson Tax Relief for Best Tax Relief Service >>
How Much Do Tax Relief Companies Charge?
Considering the complex nature of tax relief services, it can be stated that costs vary significantly from one case to another. There are two common pricing structures: a percentage-based fee on the amount owed and a flat hourly rate. The most economical option will depend on the size of your tax debt and the level of complexity involved in your case.
For companies that operate based on a percentage, their rates typically fall within the range of 10% to 15% of your tax debt. For instance, if you have a $10,000 debt (which is often considered the minimum required by many companies), you can expect to pay at least $1,000 to $1,500.
On the other hand, if you have a high amount owed but your case is relatively straightforward, opting for a company that charges a flat hourly rate may be more affordable. The average hourly rates offered by tax relief companies usually span from $240 to $1000 per hour.
Certain businesses have separate pricing structures for their various services. For example, they may impose a fixed charge of $300 for a basic investigation, but the cost could escalate to over $1,000 if you opt for a specific tax relief alternative like an offer in compromise (OIC). This particular option allows you to settle your tax debt for less than the initially stipulated amount.
Given these circumstances, it’s crucial to emphasize the importance of requesting as much information as possible from a company before engaging its services. Ideally, it would be advisable to obtain written quotes that encompass any potential additional fees and all available payment methods.
>> Use Larson Tax Relief Service >>
Tax Debt Relief Options
If you’re dealing with tax debt, the IRS provides several options for relief. It’s worth noting that some state agencies may offer similar programs for local taxes. Before seeking assistance from tax relief companies, it’s advisable to check the IRS website or speak with a representative to gather additional information about these options.
Keep in mind that most private tax resolution services involve analyzing your case and determining the most suitable solution based on available information. These companies don’t have access to any exclusive data and cannot guarantee specific outcomes that you couldn’t achieve yourself.
If your tax circumstances are fairly simple, such as having only one source of income and a straightforward stock portfolio, it’s generally advisable to communicate directly with the IRS. The IRS provides various options for resolving tax debt issues.
Offers in Compromise
Offers in compromise provide a means to resolve your tax debt by paying less than the total amount owed. The IRS evaluates various factors, including your capacity to pay, income, expenses, and assets, to determine if you qualify for this arrangement.
According to the IRS, offers in compromise are only entertained when there’s a reasonable belief that collecting a reduced sum is feasible “within a reasonable amount of time.” As such, this option for settling taxes is not frequently extended.
Innocent Spouse Relief
If your spouse, either current or former, makes mistakes while filing taxes and omits important information, innocent spouse relief can provide tax debt relief. This relief option allows you to avoid any penalties that may arise from these errors in filing. However, the IRS will only grant this exemption if they determine that you had no reasonable way of being aware of the omissions made by your spouse.
Installment Agreement
If you find yourself unable to make a lump sum payment for your tax debt, the IRS might provide an option known as an installment agreement. This plan allows you to pay off your debt gradually over time. Installment agreements come in two forms: short-term (lasting 180 days or less) and long-term (with monthly payments until the full amount is paid).
It’s important to note that there’s no specific minimum amount required in order to apply for an installment agreement. However, online applications are typically accepted for amounts up to $50,000 (for long-term agreements) or $100,000 (for short-term agreements). This makes it a popular and accessible choice for individuals who wish to negotiate directly with the IRS.
Penalty Abatement
This tax relief option, often referred to as “first-time penalty abatement,” is typically accessible for minor tax penalties. These penalties may include situations such as not making a payment on a single tax return or missing a filing deadline. To qualify for this form of relief, the main criterion is having no penalties in the past three tax years. However, it’s also necessary to have filed your current taxes or at least requested an extension.
Currently Not Collectible
At present, the status of “not collectible” (CNC) implies that both you and the IRS acknowledge that there’s an outstanding tax debt, but you’re currently incapable of making payments. In general, you have the option to request CNC status if paying your taxes would cause significant financial hardship. This typically refers to situations where meeting essential expenses like utilities, rent, or mortgage payments becomes impossible due to your tax debt.
If the IRS approves your request for CNC status, they will reassess your financial situation annually until they deem you capable of repaying your debt. Furthermore, any future tax refunds may be utilized to reduce this debt while in CNC status.
>> Use Larson Tax Relief Service >>
Other Services Offered by Tax Relief Companies
Audit Defense
Certain authorized tax experts provide a reliable service wherein they promise to assist you in case your tax returns undergo an audit. This can be compared to having car insurance. You pay a supplementary fee to the tax professional beforehand, and they commit to helping you resolve any potential tax audits that may arise in the next few years, typically within a three-year timeframe.
Alternatives to using tax debt relief companies
Direct Negotiation With the IRS
If your tax debt is relatively low, typically under $10,000, you may consider negotiating with the IRS on your own. If preparing your tax returns is fairly simple, it could be more cost-effective to apply for one of the IRS’s programs for tax debt relief instead of hiring a company for their services.
Tax Relief Lawyers
If you find your tax debt situation to be more complex, opting to collaborate with tax relief attorneys may be the most suitable choice. Keep in mind that not all tax debt relief companies have tax debt relief lawyers on staff. A tax attorney possesses a higher level of expertise compared to a CPA or an enrolled agent, which can prove valuable if your case has the potential for criminal charges.
Tax Debt Relief Programs
The Fresh Start Program, also known as the Fresh Start Initiative, is a collection of guidelines aimed at increasing accessibility to tax debt relief. Rather than providing a specific form of relief, the Fresh Start Initiative reduces the requirements for qualifying for various IRS relief programs.
Significant changes have been made to income calculations used to assess eligibility for offers-in-compromise. The IRS now only examines:
Offers paid within five months now only require one year of future income, compared to the previous requirement of four years.
Similarly, offers paid within six to 24 months now only need two years of future income, instead of the previous requirement of five years.
However, payment for all offers must be made in full within 24 months from when your offer is accepted.
Tax relief companies specializing in debt evaluate your case details and review Fresh Start guidelines to help identify qualifying relief options available to you.
Additionally, the IRS provides various tax assistance programs aimed at assisting individuals with timely tax filing and other related matters:
IRS Free File
Volunteer Income Tax Assistance (VITA)
Tax Counseling for the Elderly (TCE)
Armed Forces Tax Council (AFTC)
Interactive Tax Assistant (ITA)
“Where’s my refund?” tool
IRS2GO app
IRS.gov
IRS telephone assistance
>> Use Larson Tax Relief Service >>
Warning About Tax Relief Scams
Dealing with tax debt can be extremely stressful, leading people to consider any tempting offers that claim to eliminate it. Nevertheless, the Federal Trade Commission (FTC) cautions that not all tax relief companies prioritize your well-being.
Tax Debt Relief Companies’ Red Flags
When it comes to determining your eligibility for relief programs, only the IRS has the authority. Therefore, it’s advised to be cautious of any tax relief company that guarantees a reduction in your debt or makes claims that sound too good to be true.
If a company assures you that you qualify for multiple programs without even assessing your case or promises to resolve your tax debt within a specific timeframe, it should immediately raise concerns.
Numerous fraudulent companies don’t bother with filing the necessary paperwork required for relief programs. Instead, they deceive their clients and keep their money without performing any actual work. According to reports from the FTC, some companies even made unauthorized charges on customers’ credit cards long after their cases had already been closed.
When assessing tax relief companies, it’s important to be aware of certain warning signs.
Company agents provide assurances or commitments without examining the particulars of your case
The company neglects to inquire about the specific details of your tax debt situation
They insist on an upfront payment in exchange for promised results
The company initiates contact through cold calling, unsolicited mail, and/or email
They employ delay tactics, such as repeatedly requesting the same documents from you
Other Irs-Related Scams
In addition to tax relief schemes that deceive, it’s important to stay vigilant against other scams related to the IRS. The IRS has recently issued a press release warning about an SMS scam. Seeking guidance from a reputable tax relief company can help you navigate these fraudulent activities.
Reliable tax relief companies refrain from making specific guarantees, are transparent about costs and procedures upfront, and often offer complimentary consultations.
To minimize the risk of being tricked, ensure that the company you select is accredited by one or more professional organizations for tax professionals, such as NATP (National Association of Tax Professionals), NAEA (National Association of Enrolled Agents), and AICPA (Association of International Certified Professional Accountants).
>> Use Larson Tax Relief Service >>
How to Avoid Tax Relief Scams
Regrettably, the tax relief industry is rife with scams. Numerous fraudsters demand a substantial upfront payment, only to provide minimal assistance and leave you in even greater debt than before. Here are some tips to help you steer clear of falling victim to these scams.
Requesting Full Payment Upfront
If you encounter a tax relief company that demands payment of all fees in advance of a consultation, it would be wise to steer clear. This behavior indicates that their primary motivation is financial gain rather than providing genuine assistance.
Not Offering a Money-Back Guarantee
If a company doesn’t provide a money-back guarantee, it’s likely a scam. Reputable tax relief firms always offer this assurance to give customers peace of mind about their services.
Claiming Unrealistic Services
If a company is making exaggerated assertions, it’s advisable to consider it as a fraudulent scheme. Such claims might involve guarantees of completely resolving your tax obligations or exempting you from any tax liability. Tax relief companies have limitations and can only provide partial assistance in reducing your tax burden. However, they cannot entirely eliminate all the debt you owe to the tax authorities.
>> Use Larson Tax Relief for Best Tax Relief Service >>
Best Tax Relief Fund Services – FAQs
Are Tax Relief Companies Worth It?
Indeed, the fees charged by reputable tax relief companies are justified due to their utilization of licensed experts who possess the expertise to engage in negotiations with the IRS. Their aim is to assist individuals in qualifying for relief programs that they may not have been previously aware of.
These exceptional firms have the ability to shield you from assertive actions taken by the IRS through legal assistance and provide valuable tax preparation tools that help prevent future debts. In the event that you do not succeed in obtaining tax relief, these companies typically offer a money-back guarantee for your peace of mind.
How Much Will the IRS Usually Settle For?
The IRS will determine an amount that you can realistically afford to pay and reach a settlement. There may be situations where you still have to repay the entire debt, but it could be at a later time or through an installment plan that is divided into smaller payments. Alternatively, if you meet the requirements for programs such as spouse relief or offers in compromise, the IRS might reduce your debt.
Does Tax Debt Relief Hurt Your Credit?
Tax debt relief does not negatively impact your credit score as the IRS does not share information with credit bureaus when you establish a payment plan. Your credit could be affected if you fail to make payments, as the IRS may report this to the bureaus. However, if you honor your obligations under the agreement, your credit score should remain unchanged or even improve.
How Much Does a Tax Relief Company Cost?
Professional tax relief firms provide a complimentary consultation followed by an initial examination fee ranging from $295 to $500 for assessing your obligations. The subsequent costs will vary based on the intricacy of your case and the legal services required.
In total, you can anticipate paying between $1,700 and $6,000 for the entire procedure. Rest assured that these companies are well-equipped to assist you in navigating through tax-related matters.
How Do I Get My IRS Debt Forgiven?
If you have outstanding taxes amounting to at least $10,000 and can demonstrate that you’re unable to repay the debt within a reasonable timeframe, you may be eligible for either an offer in compromise or the IRS Tax Forgiveness program. In such cases, the IRS has the authority to decrease your debt.
Bottom Line
If you find yourself in a situation where you have unpaid taxes owed to the IRS and are facing difficulty in repaying your debt, consider enlisting the services of a tax relief company. These companies specialize in assessing your repayment options, assisting with applications for IRS tax solutions and relief programs, as well as negotiating settlements on your behalf for a reduced amount.
While it is important to note that these companies do charge a significant service fee, many taxpayers deem them valuable due to the peace of mind and stress relief they provide. Take advantage of the opportunity to schedule a free consultation with one of the mentioned tax relief companies today. This will allow you firsthand experience with the expert advice and assistance that these reputable firms offer.
>> Use Larson Tax Relief Service >>
Article paid for by: PlayTogga, [email protected]
The news and editorial staff of the Bay Area News Group had no role in this post’s preparation.
