The fastest growing source of aid for taxpayers facing collection or possible collection of their tax debts is the use of a professional tax relief company. The IRS is the largest creditor in the world and at one point or another, we all owe them money. For many taxpayers, an IRS debt can quickly become a nightmare. Many years of neglecting to respond to the IRS can net you a hefty balance, often greater than what you originally owed them. Once you are officially in collections, it is unlikely that you will ever be able to settle your debt for less than what you owe the IRS, and the longer you wait to act on the problem, the worse it's going to get.
There are a lot of different companies on the market, and it can be hard to know which one is going to work best for you. These five steps will help you identify a good tax relief company more quickly:
A large percentage of your decision should come from how much vertical specialization they have as some firms only cover IRS debt that is more than $50k while others handle scenarios involving both state and federal taxes. It's important not to just take their word for what they say, do your own research! Research each company by reading at least 20 customer reviews, both good and bad. Weigh the pros and the cons and then move on to the next company. Once you've researched the top 3 - 5 tax relief companies, go with your gut.
Step 2 - Hidden Fees
Be sure you understand any potential hidden fees such as additional interest or the early pay we discussed earlier; we recommend reading over these fees before signing up with ANY service. You also want to make sure there is no unexpected charge like credit card processing fees if the payment method requires this.
As with most services you can find elsewhere, there are hidden costs associated with tax relief. The cost of the service itself may be enough to dissuade you from signing up or may even make it impossible for some people to take advantage of the offer. The best way to avoid this problem is before joining a company, ask what other types of charges could apply after your emergency payment is processed by a debt forgiveness service and make sure you understand them well.
Search your desired city and state online for tax relief companies in your area. Consider 5 or more matches that appear on the first page of TopTaxReliefCompanies.com, and research them to see if they offer any services that you need (ie, situation types such as bankruptcy, offers penalty abatement).
Determine which company's offers best suit your needs. Assess specific factors such as geographical reach of a company’s service area versus yours so it will be most convenient for you to follow their instructions, the availability of a phone number or e-mail address so you can ask questions before they initiate collection action against you, familiarity with professional qualifications needed to successfully file all necessary forms effectively - both from an administrative standpoint and from an educational one - etc.
Step 5 - Tax Relief Assessment
The IRS imposes a number of penalties on taxpayers, including an accuracy-related penalty when the taxpayer understates their tax liability by 20% or more. There are a variety of consequences that can result in this type of situation, including property liens and levies, wage garnishment, interceptions of bank deposits and federal benefits such as Social Security. When you have been assessed with this penalty due to negligence or intentional disregard for your tax payments you should seek out assistance from a reputable company who specializes in getting them removed.
However, different tax help companies offer different specializations in each area of tax relief. It is for this reason that taxpayers in need should seek out a free tax consultation from their top tax relief companies.
Check out the chart below to compare the top tax relief companies and begin your path to escaping IRS penalties and tax debt.