Trouble Paying Your Taxes?

An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles your tax liabilities for less than the full amount owed. Tax resolution fees can be based on billable time, your debt level or a flat fee. After a free initial consultation, tax relief agents usually charge a $400 to $600 setup fee. Generally, the price of tax resolution services varies based on the complexity of the case. You can’t reschedule the debt, but you can set up a payment plan.

Before giving a tax relief firm money, make sure you understand exactly what you’re paying for. The truth is, no tax relief attorney or company can erase your tax debt overnight. So let’s talk about how tax relief services actually work, the difference between a tax resolution company and a law firm, and how to make sure you don’t end up worse off than before by hiring one.

Client Communication and Response Times

The IRS won’t call, text or contact you via social media to demand immediate tax payment. You should top rated tax resolution firm pay taxes as you earn or receive income during the year. Contact the company by phone or email to set up an appointment and go over tax relief options. Requires $10,000 in tax debt. Serves middle- and high-income individuals and businesses in state and IRS tax debt cases with its team of CPAs and enrolled agents.

• The tax relief industry, unfortunately, includes many bad actors, so it’s crucial to vet companies carefully.
• The IRS cautions that some companies “promise to eliminate tax debt but sometimes leave taxpayers high and dry,” failing to deliver results after charging high upfront fees.
• After the initial consultation, the company’s website outlines a 2-phase process for getting your tax debt resolved.
• Does the IRS really settle my debt for less than I owe?
• Before giving a tax relief firm money, make sure you understand exactly what you’re paying for.

Transparent Fees

They can also provide tax help by preventing or halting aggressive collection actions. The sales theory at play here is that if you pay them something, even a nominal amount, you are more likely to pay them again later. Different companies have different strategies for this phase. They may contact the IRS to review your transcripts and tax returns, identifying any tax issues, such as tax liens or unfiled returns. Additionally, it’s nearly impossible to gather all the necessary information to make a recommendation during the first meeting.

• The IRS explicitly warns taxpayers about so-called “offer in compromise mills” – companies that aggressively advertise settlements for a fraction of the debt but charge steep fees and often deliver no real results.
• If you owe the IRS or local taxing authorities, you must make arrangements to repay or reduce the debt.
• Attorneys and enrolled agents have resolved over $1 billion in debt.
• If the IRS puts a tax lien on your house, car, or other assets, and you sell those assets, the IRS can take the money you received to pay your tax back taxes before any other creditors can.
• If you’re unable to pay your tax bill in full, it’s important to know you have options.

Tax relief assistance comes with potentially high fees, so it’s usually best reserved for people with high amounts of debt. Yes, the company will contact the IRS or your state tax authority to get updated account records. If your case is more complex, it’s important to choose a company that employs licensed professionals like CPAs, enrolled agents, or tax attorneys. Its team includes licensed professionals (tax attorneys, enrolled agents, and CPAs) who work with clients through a structured process.

Why am I getting tax debt relief calls and emails?

Optima Tax Relief‘s Optima Tax Shield™ is a three-tier proactive tax protection plan for clients who want ongoing support after their tax issue is resolved. If you decide to work with the company, you’ll pay one flat fee, upfront or in installments. The staff is transparent online and in its conversations with clients about setting expectations from the start, including its free initial consultation. Paired with a 30-day money-back guarantee and a focus on transparency at every step, it gives customers strong protections and peace of mind. You’ll schedule a free consultation with a tax professional from the firm and work with its team to determine the best strategy and outcome for your situation.

Is tax relief legit?

It offers total transparency about whether its services can save you money before collecting fees. If you’re not satisfied, TaxRise offers a money-back guarantee under specific conditions. After the initial consultation, the company’s website outlines a 2-phase process for getting your tax debt resolved. Alleviate Tax offers flexible financing options, a lowest price guarantee, and a 30-day 100% money-back guarantee if you’re not satisfied with the customer service experience. The company doesn’t have a step-by-step process outlined on its website, but its process seems to be similar to other tax relief companies. These guarantees protect your initial investment, providing refunds if the company can’t rework your tax debt.

Identity Theft and Online Security

Provides free confidential consultation. Uses a two-phase relief program to handle IRS and state tax issues. English- and Spanish-speaking tax professionals available.

File

Still, not all tax relief companies are on the up and up. Some tax relief companies are legitimate, but not all. When the amount you owe to the IRS is significant, and you feel you need help communicating with the IRS to find a solution, hiring a tax relief company is an option.

The IRS offers direct resources and tools to help individuals resolve their tax issues. Any tax refunds you qualify for may be kept by the IRS and applied to your outstanding tax debts. The IRS declares a taxpayer currently not collectible only if the taxpayer has no way to pay their debt while still paying basic living expenses. An offer in compromise shrinks your tax liability based on what the IRS determines you can realistically pay. Depending on your circumstances, an OIC may be the smartest way to handle your tax debts.

Fresh Start programs for businesses include payroll tax settlement options. Components of the Fresh Start program include penalty abatement, installment agreements, offers in compromise, and lien release requests. The IRS will evaluate your offer in compromise based on your ability to pay, your total income, necessary expenses, and any assets you may own that have equity, such as real estate or vehicles. Tax professionals know the correct forms to fill out, who to speak with, and what to say, to increase your odds of successful tax resolution. Getting help from a professional tax resolution firm can help you take back control of your life and get your tax bill under control. Learn how to settle your debt with the IRS on your own.

No tax expert for one-on-one support. Multiple tax filing supported and $0 extra. Provides a virtual-first approach to legal representation. Available in all states for most tax situations.

You’ll chat with a representative and give them details on your tax issues. Tax relief companies may charge a flat fee or hourly rate, ranging from a few hundred to several thousand dollars. Not every company is created equal, and the best fit depends on your specific needs. You’ll book a free consultation to get started with Precision Tax Relief. That decades-long track record also means Precision Tax Relief is no stranger to tax negotiations and settlements. This means that Precision Tax Relief has consistently delivered on its commitment to clients for more than half a century.

You have options to resolve your tax bill. Copyright © Consumers Unified, LLC DBA ConsumerAffairs. Companies displayed may pay us to be Authorized or when you click a link, call a number or fill a form on our site.

This is essential for qualifying for these IRS tax debt relief programs. With the right help, you can address your tax debts and move toward a healthier financial future. The Taxpayer Advocate Service, an independent organization within the IRS, is another valuable resource for taxpayers facing significant financial hardship or trouble resolving their tax issues through normal channels. If you’re struggling with unpaid taxes or unfiled tax returns, it’s important to seek help from reputable sources. Federal tax debts are handled by the IRS, while state and local tax debts are managed by their respective agencies. Understanding the type of tax debt you have is crucial.

Resolution can take several months or longer, and you may need to stay in compliance with filing and payment during this time. During this phase, the company’s tax professionals will determine which relief programs you may qualify for and establish a strategy. If you proceed, the firm will perform an in-depth analysis of your tax history and unpaid taxes.

Help With Back Taxes: The 7 IRS Relief Options (and How to Choose the Right One)

Limited-time offers are another tactic used by bad actors to encourage you to sign up for their services. The company or scammer will promise that once you pay, they’ll erase your debt or negotiate with the IRS on your behalf. If the IRS is after you for unpaid taxes, a company that can wipe it all away instantly is exactly what you might need, right? They make it sound like they’re providing you with a way out of tax debt, but instead, often leave you in a worse position than you were in before.