The number of tax offenses grows yearly, and for some, their debt keeps piling up for years. You run the risk of missing payments if you don’t understand tax regulations, which puts you on the IRS’s radar for a long time. You’ll have to pay fines and interest if you’re found guilty.
Some people receive prison sentences for major crimes. Look for counsel and guidance from tax specialists to guarantee that you obtain the finest result from tax defaults and liabilities. To safeguard that you pay your obligations on time, these specialists also negotiate the finest payment plan with the IRS. Choosing the best tax relief agency with many tax relief organizations promoting their services takes time and effort.
Be cautious because some are merely con artists attempting to profit from defenseless tax defaulters. Below are five points to consider before using a tax relief service to prevent all of these.
1. Choose a tax debt relief company with a proven history of assisting clients with their tax burden.
Proven statistics of success assisting clients with tax claims are something to look for in an agency. Not just for months or weeks, but for years, you want to find someone. Long-standing businesses are more likely to have refined their procedures over time. It could negotiate lesser payments (or perhaps complete relief) for its clients thanks to its connections with local government representatives.
You may also determine a company’s credibility by counting the number of clients they have successfully assisted in resolving their tax-related concerns. If you read numerous positive customer reviews, they may refrain from attempting to deceive you into paying extra fees or investing in purchases.
Make sure the tax resolution agency you choose is familiar with the wide range of tax relief options the IRS offers and can create the ideal payment plan for you. The IRS provides the following typical tax relief programs to lessen your tax obligations and penalties:
Offer-in-Compromise
You can settle your unpaid tax bill if you offer a sum less than what you owe. Your ability to pay and other considerations will be considered as the IRS assesses your offer to establish its fairness. They will inform you of the amount you must offer for them to feel a legal settlement if they accept your Offer in Compromise application.
Installment Agreement
The IRS provides this opportunity for people who cannot pay their taxes in full at once. The arrangement enables taxpayers to pay their taxes over time without facing penalties or accumulating interest. Taxpayers are given a chance to settle their overdue taxes through monthly payments.
Penalty Abatement
An approach to lower the overall number of fines you must pay on your taxes is through penalty abatement. If your penalties were incurred due to unforeseeable circumstances, such as natural disasters or other events beyond your control, the IRS may also agree to reduce or waive them.
2. Verify the company’s appropriate licensing in your state and its track record for tax debt reduction.
Verify the tax relief agency’s state-issued license.
Make sure the company is duly licensed if you reside in a state requiring tax debt reduction businesses to be approved. You can find out if your state mandates that these tax collection businesses obtain licenses and how much they cost by conducting a quick Google search. The IRS also provides information on state licensing requirements for tax professionals, including when these licenses must be obtained and how much they must pay annually.
If a business lacks the necessary licenses, it can indicate that its employees are unqualified for their positions or that the organization doesn’t want outside investigators to look into its procedures. In either case, this might not be good for all the relevant parties involved—you and them!
3. Ensure the business has gained recognition from trustworthy organizations, such as the Better Business Bureau or Consumer Reports.
The Better Business Bureau (BBB) is a trustworthy and superior certification when seeking an agency. It’s best to verify if the business you’re contemplating has an A+ rating because the BBB receives its information from clients and companies. If not, then keep searching!
Consumer Reports is an additional consideration because it offers neutral information on the services provided by various businesses. Yelp reviews can also be found on your preferred search engine; these websites help you learn what other people think of the many agencies available.
The approach would be to ensure that any agency you select is authorized to operate in your state. Only then can they legally represent you in dealings with the IRS and other governmental bodies about taxes or debt collection services. Before choosing one particular agency over another, see whether they have references from previous customers who were satisfied with their services.
4. Choose a business that provides clear contracts and is upfront about its costs.
You’ve probably heard the expression, “you get what you pay for,” and we couldn’t agree further regarding tax relief providers.
Before signing a contract, ensure you know the expenses and terms. The “retainer,” an advance payment you make to the agency in exchange for their services, is a typical cost. It would be preferable if you also looked at “maintenance costs” or “monthly fees.” These are recurring charges made by most agencies for ongoing debt reduction services, including frequent consultations with professional counselors (unless you are opted out of those).
Ensure that the contract is stated in clear, simple terms. If you are okay with the responses, ask inquiries. If you’re not happy with the answers, look for another business.
5. Check for guarantees of payment.
Compensation assurances are crucial when it comes to tax debt reduction organizations. They guard you against being charged for services you don’t require and prevent you from receiving a refund if you believe the agency failed to assist you in achieving your objectives. So, before hiring, check for businesses that deliver these guarantees.
Additionally, you don’t want to work with a firm that lacks a transparent method of getting in touch with customers and responding to inquiries about their services or costs.
You should feel comfortable working with a seasoned business with a solid track record if you want to handle your debts more skillfully.
- Consider the company’s track record of achievement. If you’re looking for a tax debt remedies agency, evaluate if the business has a track record of successfully assisting clients with debt repayment.
- Verify the organization’s credentials. Make sure any potential tax relief agency has been operating for years and has a license from your state or local authority to offer these services.
- Before entering into any agreements with the agency, ensure that it complies with all legal requirements set forth by local law. This guarantees that you can feel confident about working with them to manage your financial situation better. Dealing with creditors can be stressful enough without worrying about whether someone is legally qualified or authorized to represent themselves as an authority on this subject matter.
Finding a tax relief agency that satisfies your needs and provides the appropriate services should be possible. Remember to consider other factors besides price, such as the length of time the company has been in operation, awards it has won from other organizations, and whether or not it provides compensation guarantees.
If you’re interested in learning more about debt relief solutions, get in touch with our certified tax professionals to schedule a free consultation.