The burden of tax debt is often too difficult to carry alone, especially when tax collectors are already after you because you owe back taxes or have unfiled tax returns.
After all, how can the Internal Revenue Service (IRS) expect the average taxpayer to efficiently navigate the complexities of tax laws, forms, and the number of avenues to take when in trouble with the IRS? How are you supposed to dig yourself out of the gaping hole of tax debt when the IRS is pressuring you at the same time?
The truth is, there are a number of tax relief solutions that can make the whole situation much simpler — you only have to be familiar with IRS tax law.
That's where a tax relief company comes in. If you have been pushed by tax debt to the brink of financial and emotional ruin, a tax relief company can go a long way to not only curb the threat of IRS retribution but also help you get your life back in order. A tax debt relief company will ensure the IRS adheres to its own Taxpayer Bill of Rights and follows fair tax practices.
The almost inhuman lack of sympathy for your financial situation from some IRS officials is contrasted by the quality of care you'll get from tax professionals with a good tax relief company.
The first attribute you should look for in a tax relief company is qualified tax experts and caring tax professionals. Enrolled agents are federally licensed tax professionals who hold the highest credential awarded by the IRS. They may represent any taxpayer on any matter before the IRS.
Whether it's a certified public accountant (CPAs) or a tax attorney, a tax professional will also be authorized to represent clients before the IRS; however, both are regulated on the state level. CPAs cover a wide range of accounting needs while a tax attorney specializes in tax law and can represent clients in tax court.
Potential tax relief customers should research what type of tax liability and IRS problems each company resolves. Many companies represent clients during tax audits (thorough examinations of tax returns), while others specialize in different tax resolution services.
Because each taxpayer or debtor has a unique tax problem, your tax company should be uniquely qualified to represent you and resolve your specific tax issues. These are some of the most prevalent tax issues that tax relief companies work with:
Tax relief companies should have multiple solutions to any possible IRS problems. Because of the complexity of tax law, tax code, and regulations, most taxpayers are unfamiliar with these possible solutions to the most common tax debt issues:
Most tax relief companies focus on helping people resolve tax debts. Because each case is different, the cost of relief services varies. Good tax relief companies offer free consultations to review the case and explain fees. Average fees range between $2,500 and $5,000.
Some tax relief companies also offer support and programs to help clients stay out of tax debt, like account monitoring and audit protection. Other companies also offer tax preparation services in addition to their relief services. If you are also interested in tax preparation services, make sure the tax company you choose has certified public accountants (CPAs) on staff.
Consider whether each company's tax professionals are currently involved with important accreditation organizations such as the National Association of Enrolled Agents (NAEA), which provides enrolled agents with training and opportunities to excel.
Tax relief customers who have the benefit of a dedicated enrolled agent with membership in the NAEA are ensured that the enrolled agent is held to high professional standards.
Several other national organizations also provide training and regulate industry standards, including the National Association of Tax Professionals (NATP) and the American Society of Tax Problem Solvers (ASTPS), alongside other professional tax organizations.
Tax attorneys receive their certification by passing the state bar exam.
Because each state has different tax laws and standards, it is also imperative that tax relief companies understand the state tax laws that affect your current tax debt situation. State-specific organizations provide tax law training to enrolled agents (and other tax professionals).
For example, the Washington Association of Accounting and Tax Professionals (WAATP) provides professional development to those in Washington. Such state-specific tax organizations only strengthen a company's ability to serve the unique needs of each taxpayer.
The few tax relief companies that are upfront with such information report that an average price range for comprehensive tax relief service is about $2,500-$5,000. But it is not unheard of to find a tax relief company that charges as low as $500 for its services. Unfortunately, most tax relief companies do not disclose prices upfront, so the accuracy of these ranges may vary.
Yes, this is essentially what a taxpayer is doing when he or she does not hire a tax relief company. However, the advantages of hiring a tax relief company far outweigh those of representing yourself. In cases where the taxpayer will always lose, licensed tax professionals can still reduce or eliminate some of the debt owed.
The majority of tax relief companies will be able to help with federal taxes, but only some may offer state tax relief depending on where you live. Check with each individual company to see whether they are members of your state's tax accreditations and whether they provide state tax services for your state.
Yes. Many tax relief companies hire licensed tax professionals who have either worked with or for the IRS in the past. These professionals can at most eliminate debts and at least reduce them to manageable amounts. Perhaps the most redeeming quality of a tax relief company is its ability to eliminate or lower the interest and penalties you are paying. A free consultation with a tax relief representative will give you a greater understanding of exactly how much you can save.
There are two things you should do to see if a tax relief company is legitimate: check past customer reviews (both negative and positive) and check the company/employee accreditations. If a tax relief company employs members of the NAEA, NATP, ASTPS, or any other number of reputable tax relief accreditations, you are assured of quality tax relief experts. Additionally, verify that the company employs tax professionals such as attorneys, CPAs, and enrolled agents.
First, your preferred tax resolution company will likely offer you a free consultation (either by phone or in person) to see what can be done about your tax issues. Tax professionals will do a quick assessment of your situation and present a general game plan before you commit to anything. Once you decide to work with a tax relief company, you will be assigned a representative who will examine your tax documents and be able to plead your case before the IRS.
Your rep will contact the IRS to discover the extent of your tax debt and, once all information has been analyzed, will prepare a report for you as a plan of action (there are multiple avenues to take in tax relief; a tax professional will know which is best for your situation). Because enrolled agents have full legal authority to represent you before the IRS, they can handle the situation in your stead.
There are different levels of tax relief for which you may qualify depending on your level of tax debt. The purpose of the free tax relief consultation that most companies offer is to verify your possible qualifications. If you'd like to know quickly if you qualify for tax relief, try giving a good tax debt relief company a call and schedule a consultation.
Yes. There are representative regulations on the different types of tax professionals, but enrolled agents do have full legal authority to represent you before the IRS. Other types of tax professionals (like CPAs, tax attorneys, or AFSPs) may have limited authority to represent you before the IRS. If a tax company does not hire enrolled agents or at least CPAs, it's likely a sign that it isn't a very good tax relief company.
As soon as you realize that you are in over your head (this is usually when the IRS begins to make moves against you), you should consider hiring a tax relief company. Though your reason for seeking tax relief might be different from other people, a tax relief company is designed to handle a wide variety of tax issues.
Want to contact our top-ranked tax relief company, Tax Defense Network? Please call 855-419-5062.