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(Ad) Dealing with an extensive tax liability can pose a significant and anxiety-inducing challenge, particularly if you are already facing financial difficulties. Luckily, there’s expert assistance that is accessible for individuals who owe substantial amounts to the IRS.
Tax relief companies have various tax experts that are capable of aiding you in discussing payment alternatives with both the IRS and state tax authorities, such as installment arrangements or suspending collections during periods of financial distress (known as a "currently not collectible" status).
Continue reading to discover additional details about the best tax relief services as evaluated based on their accessibility, fees, and customer feedback.
Top 10 Picks for the Best Tax Relief Companies
- Larson Tax Relief – Best Tax Relief Service Overall
- Anthem Tax Services – Best for State Taxes
- Community Tax – 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 diverse services for helping companies and individuals with business taxes, such as payroll and federal tax issues, conflicts with your revenue officer, and worker classification problems. This makes them a top choice for corporate tax debt relief.
The company provides extensive tax debt relief options, covering personal IRS tax debts to corporate tax aid and assisting in delaying or preventing bank seizures.
Aside from receiving numerous recommendations on customer review platforms, Larson is particularly renowned for its business tax services.
They can manage nearly all aspects of business tax preparation for clients, including handling the paperwork related to payroll taxes and corporate income taxes. Small business owners or those with limited accounting resources can find this support especially beneficial.
Pros
- New customers benefit from a 15-day money-back guarantee
- Capable of resolving intricate business tax situations, including tax liens or accounts receivable levies
- Free consultations are available
Cons
- The 15-day guarantee they offer might be inadequate for addressing serious tax debt issues that will take longer to resolve
- Bilingual service is not available
- A minimum tax debt of $20,000 is required
Anthem Tax Services – Best for State Taxes
Anthem Tax Services provides a range of services, including IRS tax debt relief and corporate tax preparation.
The company aids in the application process for various IRS tax debt relief programs, such as offers in compromise (OIC), innocent spouse relief, and the status of "currently not collectible."
Moreover, it extends support for filing wage garnishments and the release of tax levies – services that are not typically available from competitors.
Anthem's refund policy is among the most robust in the tax debt relief sector: If it does not achieve any form of resolution from the IRS, including payment reduction or debt forgiveness, it offers a complete refund.
It's essential to bear in mind, though, that this guarantee excludes the initial investigation fee, which generally starts at $350 based on the case specifics.
Pros
- Money-back guarantee with no time limit
- Dedicated tax relief services for truck drivers
- Some customers have reported cases resolved in as little as one week
Cons
- Customers have reported poor communication on cases that extend beyond a week
Community Tax – Most Affordable Fees
Community Tax provides complimentary consultations and cost-effective investigation charges ranging from $295 to $500. The primary focus of Community Tax relief services is to address IRS tax debt, and so they offer only limited assistance with state taxes.
Much like other firms in the industry, Community Tax manages a wide array of applications, including installment agreements and offers in compromise, but not innocent spouse relief.
Setting itself apart from other firms, Community Tax is among the select few companies offering bilingual support, both online and through their representatives.
Alongside tax debt relief services, the company also extends its expertise to tax filing, bookkeeping, and business accounting services.
Clients can benefit from free consultations, while Community Tax’s A+ BBB rating is substantiated by numerous positive appraisals and swift responsiveness to customer concerns.
Pros
- Bilingual services are available
- Affordable initial fees
- Tax planning services are provided to reduce the likelihood of future tax issues
Cons
- Upfront fee information is not disclosed
- Limited options for state tax debt relief
Optima Tax Relief – Best for IRS Audit Representation
Optima's exclusive application provides users with the ability to request a tax extension for free and offers guidance on handling IRS notifications, establishing the firm as the leading provider of mobile applications in the field.
Optima Tax Relief deals with a wide range of IRS and state tax relief solutions, encompassing various options, such as payment schedules and filings for "currently not collectible" status. The company's team consists of a diverse range of tax experts, including enrolled agents, tax attorneys, and certified professional accountants (CPAs).
Significantly, Optima has its own app, which enables users to obtain a complementary evaluation for any IRS collection notice they receive and also assistance in applying for an extension to their tax filing deadline.
Pros
- Free consultations are provided
- The proprietary app offers a free assessment of collection notices
- The clearly outlined tax resolution process sets realistic expectations for the outcome of your case
Cons
- A minimum tax debt of $10,000 is required
- The 15-day money-back guarantee is shorter than that of most competitors
Tax Defense Network – Best for Bilingual Services
Tax Defense Network's ability to cater to both Spanish and English speakers online and over the phone sets it apart as the premier tax relief company offering bilingual services.
What distinguishes Tax Defense Network is its provision of comprehensive customer service in both Spanish and English through its website and call center.
Moreover, the company sometimes accommodates tax debts as low as $5,000, making its services more accessible for many compared to its competitors.
In addition to handling the full spectrum of IRS and state tax debt relief options, like payment plans, offers in compromise, innocent spouse relief, etc., Tax Defense Network also provides tailored solutions for business taxes.
This includes specialized services for closing corporate filings if a business needs a permanent shutdown.
Furthermore, its array of educational resources surpasses that of other companies, with many tools available, such as offer-in-compromise calculators and tax-withholding calculators.
Pros
- Offers a wide range of tax debt relief and preparation services
- Provides robust tax education resources
- Fully bilingual services are available
Cons
- Its money-back guarantee is limited to just three days
Fortress Tax Relief – Best for Large Tax Debt
Tax relief companies often determine their fees based on a percentage of the total tax debt owed to the IRS.
This approach can result in disproportionately high charges for cases with substantial debts, and may not accurately reflect the effort required to resolve such cases. For instance, addressing a $20,000 debt may not necessarily demand twice the effort needed for a $10,000 debt.
Fortress Tax Relief sets itself apart from many companies with its method of providing quotes based on estimated time commitments. While attorney hourly rates vary, typical EA rates range from $100 to $200 per hour.
Consequently, individuals confronted with sizable tax debts are likely to incur notably lower costs compared to those charged by percentage-based tax relief firms. Nevertheless, obtaining multiple quotes from different companies is always advisable.
In addition to this innovative pricing strategy, Fortress Tax Relief offers an extensive customer service guarantee. If you have an ongoing case with them and reach out via phone or email, their customer service has a commitment to respond within two business days.
If this commitment is repeatedly unmet, customers are entitled to receive $100 credited to their account for each subsequent occurrence.
Pros
- Utilizes a non-percentage-based fee structure
- Provides a monetary customer service guarantee
- Handles state tax debt in all 50 states
Cons
- Requires a minimum tax debt of over $10,000
- Lacks accreditation from industry organizations
- Offers limited business services
Precision Tax – Best for Transparency and Attention
Finding trustworthy companies offering tax relief is a real challenge, but Precision Tax Relief stood out in our evaluation on nearly every front.
The company’s 30-day money-back guarantee is particularly noteworthy, being one of the most extended guarantees in the industry.
Also, they determine their pricing using a fixed-rate fee that they discuss during a complimentary consultation. Your fee will only go up if the scope of work changes from the initial quote due to new information that was not provided during your consultation.
They offer flexible payment options too, allowing you to choose between a lump sum or a zero-interest payment plan.
Precision Tax doesn't mandate that clients must have a certain minimum debt amount. However, after speaking with their customer service department, it became apparent that their basic service fee might not be justifiable for individuals who owe less than $10,000 without any other variables involved.
Additionally, they only handle cases where the potential debt relief outweighs the service fees for clients.
Pros
- Provides a 30-day money-back guarantee
- Utilizes an all-inclusive flat-rate fee
- Customer service is accessible through phone, text, email, and live chat
- Established in 1967
Cons
- Does not handle standalone state tax debt
- Lacks tax audit representation services
- Offers limited online resources
Liberty Tax - Best for Avoiding Tax Debt in the Future
While Liberty Tax's main focus may not be tax debt relief services, it provides a diverse array of preparation tools to prevent future liabilities.
With the tax relief industry shifting toward digital platforms and individuals increasingly filing their own returns, many are finding themselves in problematic situations.
One of the standout features that makes Liberty Tax one of the top choices among tax relief companies is its ability to help individuals circumvent debt entirely through complimentary tax return evaluations, online and in-person filing assistance, and various other offerings.
Due to its primary emphasis on preparation services, Liberty Tax entrusts its tax debt relief services to the reputable provider Community Tax.
As you may recall from earlier, Community Tax delivers an extensive range of programs aimed at alleviating federal and state tax debts, such as wage garnishment, tax liens, payroll taxes, extensions, and more.
Pros
- Rapid page loading
- Comprehensive coverage of self-employment topics
- Effective review process
- Excellent mobile accessibility
Cons
- Subpar user experience
- Limited help content
- Insufficient context-sensitive help
- Some atypical navigation issues
Tax Hardship Center – Best For Tax Preparation
Tax Hardship Center has earned a spot on this compilation list because of the exceptional feedback from their clients on the Better Business Bureau (BBB). They provide assistance with tax liens, penalties, overdue taxes, payroll taxes, wage garnishments, and more.
The organization also offers an array of tax preparation options. Tax Hardship Center is capable of submitting both previous and current outstanding taxes for payroll purposes, individuals, and businesses.
The Tax Hardship Center offers a 14-day refund guarantee. This means, should you be dissatisfied with their services during the initial two weeks, you are eligible to receive a full refund of all fees paid. However, this is a shorter guarantee time than many competitors. Moreover, they do not impose a minimum limit on the amount of tax debt owed.
Pros
- Free consultation services
- Offers tax preparation services
Cons
- Requires a minimum debt of $10,000
- Provides a 14-day money-back guarantee
TaxSlayer - Best Tax Relief Software
TaxSlayer's origins can be traced back to Augusta, Georgia, and 1965, when it was established as Rhodes-Murphy & Co. Initially offering traditional tax preparation services, the company gradually transitioned into creating customized tax software for professionals in the field.
Presently, TaxSlayer provides intuitive tax software that empowers individuals to conveniently file their taxes from the comfort of their own homes.
The potential accumulation of additional taxes, fines, and interest in some cases has the potential to lead to a situation where a tax debt builds up, which can become complex and quite distressing for man y to solve when navigating their dealings with the IRS. This is where TaxSlayer can help.
Despite the challenges in many cases, TaxSlayer remains dedicated to providing assistance in these trying circumstances.
Pros
- Utilizes a DIY approach to tax relief
- Offers budget-friendly prices
- No minimum debt requirement
Cons
- No money-back guarantee
- Learning how to use the software can take some time
- Mixed and low ratings online
Our Ranking Methodology for the Best Tax Relief Services
In our quest to choose the top tax relief services companies, we undertook the responsibility carefully and meticulously. Understanding the importance of selecting a credible and reliable tax relief firm, we developed a thorough set of standards to assess firms against covering different crucial elements.
Below is an overview of the benchmarks we used to pinpoint the finest tax relief companies:
- Reputation and Credibility: A company's reputation and credibility within the industry were pivotal considerations during the selection process. We examined the duration of the company's operations and sought proof it had a positive track record. Reviews, testimonials, and ratings from reputable sources played a crucial role in evaluating the company's standing.
- Licensing and Accreditation: Priority was given to companies that hold proper licenses and accreditation from relevant regulatory bodies. A reputable tax relief company should possess the necessary licenses to operate within the tax resolution industry, ensuring its adherence to industry standards and regulations.
- Expertise and Qualifications: The qualifications and expertise of a company's staff, including tax attorneys, enrolled agents, and certified public accountants, also hold paramount importance. We scrutinized the educational backgrounds, certifications, and experience of the professionals available in the companies to ensure they possessed the requisite skills to address complex tax issues.
- Range of Services: Our assessment focused on the variety of services each tax relief company provides. The ideal company should offer a comprehensive suite of services, encompassing tax negotiation, IRS audit representation, penalty abatement, tax lien, levy assistance, and in-compromise services. A diverse service range showcases the company's ability to handle various tax-related problems.
- Customized Solutions: We favored companies offering personalized and tailored solutions to address each client's unique needs. A one-size-fits-all approach is considered unacceptable; and we sought companies that evaluate each client's situation individually and develop a strategy accordingly.
- Transparent Pricing: Transparency in pricing stood out as a critical consideration. We sought companies that presented clear and upfront pricing structures without hidden fees or surprises, as these instill confidence in clients that they are receiving a fair deal.
- Customer Service and Communication: Exceptional customer service emerged as another crucial criterion. We assessed the responsiveness and accessibility of a company's representatives. Prompt communication and a commitment to keeping clients informed throughout the process were highly valued.
- Success Rate: A company's success rate in resolving tax issues for clients was another significant factor. A high success rate indicated a strong track record in achieving favorable outcomes for clients.
- Ethical Practices: Ethical conduct was a non-negotiable. We verified that the tax relief companies adhered to proper ethical standards in their interactions with clients and tax authorities, with any history of unethical practices considered a serious red flag.
- Client Satisfaction: Finally, we examined client feedback and testimonials to gauge overall satisfaction. Positive reviews and testimonials from previous clients provided valuable insights into a company's ability to fulfill its promises.
Best Tax Relief Services – Buyer’s Guide
What is Tax Relief?
Tax debt relief entails various approaches and tactics that can assist individuals in paying off or decreasing their tax obligations.
Initially, the term was associated with policies designed to alleviate the tax burden for both businesses and individuals. However, it now commonly encompasses installment plans, settlements (referred to as offers-in-compromise), and salary garnishments.
Although comparable plans are offered by state and federal tax collectors, local regulations differ significantly. It’s therefore crucial to explore the specific options accessible through your state’s controller's office.
Furthermore, it's essential to highlight that anyone can directly discuss these alternatives with the IRS. Nevertheless, there are instances when enlisting professionals will prove to be a valuable investment.
Tax relief firms, also recognized as tax resolution organizations, leverage their understanding of the relevant federal and state laws to examine your records and financial position while identifying optimal solutions that suit your situation.
The process typically involves submitting documentation and liaising with the IRS on your behalf. Some firms enlist tax attorneys who can serve as intermediaries in negotiations with the government in certain particularly intricate cases.
How Do Tax Relief Companies Work?
Tax relief firms collaborate with the IRS to decrease taxpayers' outstanding tax liabilities. Nevertheless, it's important to recognize that most of the services tax relief companies offer can be accomplished through direct communication with the IRS.
The fundamental disparity lies in the fact that reputable tax relief firms enlist seasoned professionals proficient in tax legislation, enabling them to handle intricate cases involving substantial debts adeptly.
For example, if your tax obligations stem from unpaid taxes from the previous year, it may be more beneficial for you to engage with the IRS directly since there’s minimal assistance these firms can directly provide that you cannot handle yourself.
However, if your tax debt situation involves numerous bank accounts, assets, years of overdue taxes, and other complexities that complicate your tax matters, a tax relief company can assist by organizing your documentation and identifying the most suitable options.
In extremely uncommon instances, they may even uncover overlooked aspects and may be able to negotiate a reduced tax liability on your behalf.
For debts under $10,000 though, engaging in direct negotiations with the IRS might be more advantageous. First, most tax relief firms have a minimum debt threshold, usually $10,000 or higher.
Second, if your debt falls below that threshold, settling with the IRS through installments may be more beneficial than accruing additional expenses by utilizing tax relief services.
Of course, each individual’s circumstances are unique; if you believe you require assistance with taxes irrespective of the amount owed, many tax relief companies provide complimentary consultations to kick-start the process.
Common Tax Problems
Tax issues encompass a variety of problems, though in most cases they arise from errors in filing or a failure to file tax returns. Here are some insights into the typical tax problems that can be addressed by tax relief firms on your behalf:
Back Taxes
Unpaid taxes can arise from unsubmitted tax documents or errors in the filing process. These unpaid amounts can accumulate interest if left unaddressed, leading to a significant increase in your tax liability.
The IRS regularly updates the interest rates for fines, making it crucial to stay updated by visiting the agency's website.
One effective method to prevent accruing back taxes is by utilizing tax preparation tools. If you require assistance with your tax filings, consider reading our piece on top-notch tax software for some valuable guidance.
Wage Garnishments
When the deadline for your tax payment looms, the IRS will dispatch a sequence of collection notifications to you.
Should you disregard these notifications over an extended period, the IRS might opt to retrieve segments of your debt by directly deducting a portion from your earnings through wage garnishment.
Your company can obtain Publication 1494 from the IRS to aid it in calculating the segment of your income that’s safeguarded from garnishment, which will also involve taking into account your marital status and your number of dependents.
Typically, wage garnishment persists until the debt is completely settled; however, firms specializing in tax relief could potentially help by arranging alternative payment agreements.
Tax Liens
Comparable to wage garnishment, this serves as a public notification from the IRS to financial institutions and related parties, asserting their entitlement to retrieve funds from the proceeds from the sales of personal property ahead of other creditors.
Tax Levies
A tax levy represents a more extreme form of a tax lien, signifying the IRS's authority to confiscate your assets in order to settle your outstanding debt.
Tax Audits
If the IRS detects inconsistencies in your tax filings, they may opt to conduct an audit. Although audits can target anyone, affluent individuals, particularly those with earnings exceeding $10 million, are more likely to be audited.
How Much Do Tax Relief Companies Charge?
Considering the intricate nature of tax relief services, it’s evident that costs can significantly differ from case to case.
Typically, there are two primary pricing structures employed: one based on a percentage of the outstanding debt and another based on fixed hourly charges. The most economical option will be contingent on the magnitude of your tax liability and the complexity of your situation.
Many firms employing a percentage-based approach have fees spanning 10% to 15% of your tax arrears. For instance, if your debt amounts to $10,000 (which is often the minimum amount required by many companies to engage with their services), you should anticipate paying at least $1,000 to $1,500.
Conversely, a company utilizing a flat hourly fee might be more cost-effective if you owe a substantial sum but have a relatively uncomplicated case. The average hourly rate within tax relief companies typically varies between $240 and $1000. Certain businesses may have distinct pricing structures for various services.
For example, they might impose a fixed charge of $300 for a basic inquiry, but the cost could escalate to over $1,000 if you intend to pursue a particular tax relief avenue, like an offer in compromise (OIC), which would enable you to resolve your tax liability for less than the originally specified amount.
Given these circumstances, it’s crucial to emphasize the significance of requesting as much information from a company as it is capable of providing before entering into an agreement for its services.
Ideally, it’s advisable to obtain documented quotations that outline any potential supplementary charges and all available payment methods.
Tax Debt Relief Options
The IRS offers a range of options for tax debt relief that are available directly to individuals. Local tax agencies may also provide similar programs.
Before contacting tax relief firms, it's advisable to check the IRS website or consult a representative by phone for additional details on these options.
It's important to note that most private companies' tax resolution services involve evaluating the specifics of your case and determining the most suitable option based on the available information.
However, remember they do not have access to exclusive data and cannot guarantee specific outcomes that you couldn't technically secure yourself.
For straightforward tax situations without complex income sources or investments, it's generally preferable to communicate directly with the IRS yourself. The IRS provides various options for resolving tax debt, which individuals can explore.
Offers in Compromise
Compromises in offers present a means to resolve your tax liability for an amount lower than the total owed. In this agreement, the IRS evaluates certain variables pertaining to you, like your financial capability, earnings, expenditures, and assets, to assess your qualifications.
According to the IRS, offers in compromise are solely assessed if there’s a basis to think that the reduced sum is the maximum that could be collectible "within a reasonable amount of time," rendering it one of the least frequently provided tax settlement alternatives.
Innocent Spouse Relief
This form of tax debt relief is applicable in cases where your current or former partner has made an oversight while filing their taxes.
Innocent spouse relief frees you from any tax fines that may arise due to these filing mistakes. This avenue is only viable if the IRS concludes that you had no feasible means of being aware of the omissions.
Installment Agreement
If you find yourself unable to settle your tax debt in one go due to financial constraints, the IRS might propose an installment plan, allowing you to pay off your debt gradually over time.
Such installment agreements come in two forms: short-term (lasting 180 days or less) and long-term (involving monthly payments until the debt is fully cleared).
While there’s no specific threshold for the amount owed when seeking an installment agreement, online applications are open for sums up to $50,000 (for long-term agreements) or $100,000 (for short-term agreements), making such agreements a widely used and accessible choice for individuals aiming to engage directly with the IRS.
Penalty Abatement
Occasionally referred to as the "first-time penalty abatement," this tax relief choice is widely accessible for minor tax penalties, like neglecting to submit a payment for a solitary tax return or overlooking a filing cutoff.
The primary qualification for this form of relief is you should have no penalties in the last three tax years, although you must have also submitted or at least requested an extension on your present taxes.
Currently Not Collectible
Presently, being in a state of not collectible (CNC) implies a mutual acknowledgment between you and the IRS that although there are outstanding taxes, you are currently incapable of settling them.
In essence, seeking CNC status is typically applicable when meeting your tax obligations would pose an excessive hardship on you in meeting your essential living expenses.
This includes situations where it becomes challenging to cover crucial expenses like utilities, rent, or mortgage payments, or even having insufficient funds for basic groceries due to your tax liability.
If granted CNC status by the IRS, a thorough evaluation of your financial situation will occur annually until it’s determined that you can repay the debt.
Furthermore, any forthcoming tax refunds may be allocated toward reducing your debt while under CNC status.
Other Services Offered by Tax Relief Companies
Audit Defense
Certain authorized tax experts provide assured support if your tax filings undergo an audit. Consider it akin to automobile insurance.
In audit defense, you compensate the tax expert an extra sum in advance, and they commit to aiding you in addressing any potential tax audits within the subsequent few years, typically up to three years.
Alternatives to Using Tax Debt Relief Companies
Direct Negotiation With the IRS
As previously stated, if your tax obligation is relatively modest, typically under $10,000, you may opt to engage in direct discussions with the IRS independently.
If completing your tax filings is a fairly simple procedure, seeking assistance through any of the IRS's programs for reducing tax debt could prove to be more cost-effective than employing a company specializing in tax debt relief services.
Tax Relief Lawyers
Engaging with tax relief attorneys could be the preferred route if you perceive your tax debt circumstances as intricate.
It's important to note that while certain tax debt relief firms utilize the services of tax debt relief attorneys, not all do.
A tax attorney possesses a more specialized skill set compared to a CPA or an enrolled agent, which can prove invaluable in situations where your case has potential criminal implications.
Tax Debt Relief Programs
The Fresh Start Initiative, formerly known as the IRS Fresh Start Program, comprises a set of principles aimed at enhancing accessibility to tax debt relief.
Rather than providing a specific form of relief, this initiative reduces the existing criteria for eligibility in various IRS relief programs. Notably, some adjustments have been made to the income calculations used to assess the qualification for offers-in-compromise.
For instance, the IRS now considers only one year of future income for offers paid within five months (down from four years) and two years of future income for offers paid within six to 24 months (down from five years).
It’s imperative that all offers are settled in full within 24 months from the date they are accepted. Tax debt relief firms will carefully review your case particulars and align them with the Fresh Start guidelines to identify suitable relief options you may qualify for.
Furthermore, the IRS provides several tax assistance initiatives intended to aid individuals in filing their taxes punctually and for addressing other related matters. These include:
- 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
Warning About Tax Relief Scams
Dealing with tax debt often leads to significant anxiety, leading to any opportunity for its elimination to appear appealing. Nevertheless, the Federal Trade Commission (FTC) cautions that not every tax relief firm will prioritize your well-being.
Tax Debt Relief Companies’ Red Flags
Avoiding any company that claims to lower your debt or makes unrealistic promises is essential, as only the IRS can determine if you are eligible for relief programs.
Red flags should be raised if a company assures you that you qualify for certain programs without even assessing your case or guarantees to resolve your tax debt within a specific timeframe.
It is important to look out for bogus and deceitful companies that may deceive customers by not submitting the required paperwork for relief programs and instead mislead them while pocketing their money.
According to FTC reports, some companies even illicitly charge customers' credit cards long after resolving their cases. So when assessing tax relief companies, it’s crucial to watch out for any warning signs, such as these below:
- Representatives from the company provide guarantees or promises without even reviewing the details of your case.
- The company neglects to inquire about specific details regarding your tax debt situation.
- The company demands upfront payment in exchange for purportedly "guaranteed" results.
- Contact is initiated through cold calling, unsolicited mail, and/or email.
- The company utilizes delaying tactics, such as repeatedly requesting the same documents.
Other IRS-Related Scams
In addition to fraudulent tax schemes, it's essential to stay vigilant against alternative IRS-related deceptions, like the recent warning on IRS text message deceits issued by the agency.
A reputable and reliable tax relief firm can furnish you with advice on steering clear of these deceptive practices.
Reputable tax relief organizations refrain from making explicit commitments, ensuring transparency regarding their fees and procedures from the outset. Moreover, they frequently provide complimentary consultations.
Prioritize selecting a company accredited by one or more professional tax associations, such as the National Association of Tax Professionals (NATP), the National Association of Enrolled Agents (NAEA), and the Association of International Certified Professional Accountants (AICPA), to minimize susceptibility to scams.
How to Avoid Tax Relief Scams
Regrettably, fraudulent activities are prevalent within the realm of tax relief. A significant number of these schemes require an initial substantial payment, deliver only the essential services, and ultimately exacerbate your financial obligations.
Here's a guide to steering clear of falling victim to such deceitful practices and some practices that should raise a red flag.
Requesting Full Payment Upfront
If a tax relief firm requests payment of all fees in advance prior to a consultation, it's best to steer clear. This behavior clearly indicates their primary focus is on extracting money from you.
Not Offering a Money-Back Guarantee
If a company doesn't provide a money-back guarantee, it's often a red flag for potential fraud. The majority of tax relief companies include this feature to instill trust in their clients regarding the quality of their services.
Claiming Unrealistic Services
If a company is making exaggerated assertions, it should be regarded as fraudulent. These could involve commitments to eliminate your entire tax debt or absolve you of all tax obligations.
Tax relief firms have limitations and might only be able to ease your tax burden; they cannot erase all your tax liabilities.
Best Tax Relief Fund Services – FAQs
Are Tax Relief Companies Worth It?
Absolutely, the fees charged by top-notch tax relief firms are justified as they enlist certified experts adept at bargaining with the IRS to assist you in qualifying for a relief initiative that might have eluded your attention.
These premier companies safeguard you from assertive IRS measures by furnishing legal assistance and aiding in averting impending debt through providing valuable tax preparation support. In cases where tax relief is not attained, a refund policy may be in place for your peace of mind.
How Much Will the IRS Usually Settle For?
The IRS will determine what is a feasible amount for you to pay based on your situation and details. Occasionally, you might still be required to repay the entire debt, but this could occur at a future time or through an installment plan.
Alternatively, if you qualify for programs such as spouse relief or offers in compromise, the IRS might reduce your debt in certain situations.
Does Tax Debt Relief Hurt Your Credit?
Getting help with your tax debt won't negatively impact your credit score, as the IRS doesn't share payment arrangement details with credit bureaus.
However, if you start missing payments, the IRS will report this and it could hurt your credit rating. So as long as you stick to the agreement and make payments on time, your credit score should stay stable or even go up.
How Much Does a Tax Relief Company Cost?
Reputable tax relief firms will usually provide a complimentary consultation followed by an initial inquiry charge ranging from $295 to $500 to assess your obligations.
Subsequent expenses will vary based on the intricacy of your situation and the legal assistance needed. The overall expenditure for the entire procedure will typically fall within the range of $1,700 to $6,000.
How Do I Get My IRS Debt Forgiven?
If you have outstanding taxes of $10,000 or more and can demonstrate an inability to repay the debt within a reasonable timeframe, you may be eligible for the IRS Tax Forgiveness program or an offer in compromise. Meeting the criteria could lead to a reduction in your overall tax liability by the IRS.
Bottom Line – Best Tax Relief Companies
If you find yourself in a situation where you owe taxes to the IRS and are facing difficulties in settling your debt, enlisting the services of a tax relief firm may be the optimal solution for you.
These firms have the capacity to assess all available avenues for repayment, aid you in applying for IRS tax resolutions and relief initiatives, and endeavor to negotiate a reduction in your debt.
Although these firms do impose a substantial service charge, numerous taxpayers deem it a worthwhile investment due to the peace of mind and alleviation of stress they deliver.
Take advantage of scheduling a complimentary consultation with one of the tax relief firms listed with us today, allowing yourself firsthand experience of the expert guidance and support that these establishments can extend.
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