Many taxpayers who owe back taxes to the Internal Revenue Service (IRS) will receive a notice of tax due and attempt to resolve the issue themselves. If you owe an amount less than $10,000 this makes sense. However, when the liability exceeds $10,000, it’s always a good idea to seek professional representation from a tax relief firm.
Because a professional not only understands the range of programs available to pay off and/or settle your tax debt, but also how to speak to the IRS, how to file the necessary paperwork, and can answer questions along the way, saving you time, worry and confusion.
Though your debt may feel hopeless at first, Tax Practitioners are able to analyze your situation and resolve it based on laws that may benefit you, the taxpayer, thus reducing the total amount that you pay. For example, there are tax relief programs such as the Offer in Compromise (OIC) where you may settle your total debt for less. There are also programs available to have your penalties removed, thus helping to reduce your debt. These are just two of many programs available to help with your back tax situation, but every program has different qualifications and rules that must be followed before a settlement can potentially be reached. That’s why having an expert there to guide you helps save time, headaches and, ultimately, money. So before you whip out that checkbook and send the IRS the full amount you owe, it’s always a good idea to get a free and confidential consultation with an experienced tax advisor.
When you do contact a tax relief or tax resolution company, there are many factors to consider. Don’t hire a firm solely based on low fees. Fees that are lower than the industry standard usually mean that the firm will be cutting corners and may not properly settle your debt, or be safe to trust your sensitive financial and personal information with. Some important questions to ask potential tax relief or resolution firms are: How long have you been in business? What are your ratings with the Better Business Bureau, Yelp and Google? Are the owners and management staff properly disclosed on the website?
If a company fails to disclose vital information such as management staff or their public ratings online, that’s a red flag that should have you seriously considering whether to work with them. You should also confirm that they provide a free and confidential consultation with an experienced tax advisor – not a commissioned salesperson.
As previously mentioned, a key advantage of hiring a tax relief firm is to avoid unnecessary stress, confusion and incorrect filings when resolving a debt with the IRS. And that’s not to mention the time that you’ll save. Current hold times to speak with IRS agents can be up to 3 hours long and several phone calls are required throughout a tax resolution case. If you’re busy running a business, maintaining a career, or taking care of your family (or all of the above), the time spent just trying to contact the IRS can add up to having a whole additional job – and a stressful one at that. A resolution expert can help contact the IRS to keep the process moving along, saving you precious time to get back to your life – all with less worry hanging over your head.
If you are ready to have an experienced tax professional help resolve your IRS or State back taxes, give us a call today or contact us here.