Tax debts are quite common among citizens. A lot of people are usually behind their tax payments which may lead to an accumulation of a huge amount of debt. A lot of individuals and corporate organizations fall into tax debts because they miscalculate their income, filing errors, and providing incomplete records to the IRS. This is why tax relief companies exist.
Tax relief companies help taxpayers reduce their tax debts legally. They also help taxpayers who are in distress and need help resolving unpaid state and federal tax debts.
Tax relief companies use and utilize the programs provided by the IRS to help taxpayers reduce their tax liabilities. Their services are not free as most of them even charge as much as thousands of dollars. Finding the best tax relief company may be a tough task as there are a lot of dubious tax relief companies that claim to help taxpayers but end up only collecting expensive fees and doing nothing.
THE PROBLEM WITH TAX RELIEF COMPANIES.
The IRS is the highest powerful US agencies because tax is one of the government’s major sources of revenue. Hence, when taxpayers realize they owe a lot of tax debts, they become afraid of the consequences of failing to pay. Most times, the debt is too huge to pay so they seek the services of tax relief companies.
These tax relief companies claim they can help taxpayers reduce their tax debts legally or even fully eliminate them. However, they require fees to carry out this reduction on behalf of their clients. Some tax relief companies only exploit their clients and end up doing little or nothing for them. This makes finding a credible tax relief company a daunting task.
TIPS WHEN CHOOSING A TAX DEBT RELIEF BUSIESS.
The following tips will help you select the best-suited tax relief company out of a variety of options.
- Do your research.
Before reaching out to any tax relief it is important to carry out in-depth research on how tax relief companies operate, their average fees, and to what extent they can be of help to you. Also, researching their success rates and how effective they are with tax debt reduction. Doing your research relives you of the headache of having to deal with an incompetent tax relief company and helps you streamline your options
- Compare the fees.
Always compare the fees of different tax debt relief companies before finally selecting one. This gives you a lot of options and prevents exploitation.
- Don’t be desperate.
Desperation will do you no good in this search as it’ll only open you up to falling prey to dubious and incompetent tax relief companies.
- Cross-check all the terms and conditions.
Always be sure to crosscheck the terms and conditions of the company before signing with them. Some companies have hidden extra charges that may be sneaked into their T&Cs. Hence, it is important that you carry out these thorough checks to avoid them.
CRITERIA TO LOOK OUT FOR WHEN FINDING THE BEST TAX DEBT RELIEF COMPANY.
- FIND A COMPANY THAT CARRIES OUT AN INQUIRY BEFORE QUOTING THEIR FEES FOR THE JOB
A lot of tax companies are very quick to make promises of reducing your tax debt by e.g. 70% or 90% without even carrying out a proper investigation. This “promise” has a high chance of not being fulfilled because the IRS will not suddenly reduce your tax debt. After all, you want to. There are a lot of criteria that need to be satisfied before your tax debt can be reduced and they can be peculiar to different taxpayers. Hence, it is important to find a company that is not only interested in charging hundreds and thousands of dollars but also wants to solve your problem and the first step to do that is to find one that is ready to carry out a thorough investigation first.
- Find a company that does a deep investigation.
Some tax debt relief companies often offer incredibly low charges for investigations and end up doing a sub-par investigation. The inquiry is a very important step in ensuring that all your tax debt problems will be identified and solved. If the tax relief business does not do a detailed and comprehensive job, it puts you at the risk of receiving notices in the future from IRS for the same issues.
- Select a company that meets all the 10 numbers for a detailed investigation.
A thorough and detailed investigation into your tax debt problems must contain all the following elements:
- The total amount of taxes owed per year
- The IRS’s reasons for assessing the tax.
- Comprehensive detail’s of the tax owed, other interests, and penalties.
- Dates of exemptions for each year’s liability, based on statutes of limitations.
- List of missing or substitute filed returns.
- The level of all company activity including liens, levies, holds, etc.
- Whether a revenue officers has been assigned or not
- Decide the financial’s per income and IRS valuations of taxes.
- What is require to become taxes obedient before the resolution?
- Recommend a solution plan, and be able to work on resolutions.
- SELECT A COMPANY THAT PROVIDES THE BEST RESOLUTION WITH GOOD INTERNAL POLICIES.
When dealing with taxes relief companie’s always ask what internal checklists they use and what processes they follow. Some companies mislead and tell their clients that they will get better commitment than they actually would. Hence, it is important to work with a company with good internal policies and have all the workers in charge of your file know your peculiar situation. This prevents future problems from the IRS because some companies may file false information about their clients in a bid to help, but only end up putting them in more trouble should the IRS find out.
- SELECT A STRONG COMPANY: Not the biggest one or the smallest one. It is important to select a tax debt relief business that is big enough to do a great job and the right things, but small enough to make no mistakes. In reality, finding this fit may be difficult because big companies are prone to making more mistakes and the small ones can barely get anything done. Find a company with a great and competent team to handle the issue. Also, ask for their success stories and verify by checking reviews online about them. Finally, ensure that they measure their progress and keep you updated throughout the process.
- PICK ONE THAT IS LICENSED AND BONDED IN MANY STATES.
Ensure that your selected tax debt relief company has been licensed in many states. This helps you ascertain that they are well known and also protects you from working with quacks. Sometimes, the headquarters of your tax relief companies may be in another state and you need to be sure that they are familiar and licensed to practice in your state.
Finding the best tax relief company may not exactly be the easiest task. However, with the pointers and tips highlighted above, you are now armed with the correct information to look out for when selecting one. Always ensure you carry out all your research, read the T&Cs before going into business with a tax debt relief companies. It is also important to continue to follow up and track your progress and hold the company accountable. This ensures that you get the best out of the entire situation.