If you owe back taxes and don’t know how you’re going to pay the debt, don’t panic.
Take a deep breath and consider your options.
The FTC, the nation’s consumer protection agency, says that if you are having trouble paying bills, it’s often better to try to work out a payment plan with the IRS yourself than to pay someone else to negotiate a plan for you.
But is it?
There are many companies offering tax relief services online. Some of these companies claim to offer free consultations and help with filing taxes. Others promise to get rid of penalties and interest charges. Still others will even file your return for you.
Unfortunately, not all tax relief companies are legitimate. They prey on desperate taxpayers who are looking for quick fixes. These scammers often charge high fees and make false promises.
In this guide we’ll go over how to spot a scammer before you fall victim to one and how to find reputable companies.
What Are My Options For Tax Debt Relief?
You have two options when dealing with tax debt: you can either deal with the IRS yourself, or hire a reputable company to help you.
The IRS has a number of programs that can help reduce the amount of taxes that you owe, but they aren’t in business to save you money- they’re only interested in collecting your taxes.
If you’re having trouble paying your taxes, it might be best to hire a company that specializes in tax relief and can represent you with the IRS. They will help you save as much money as possible.
What Do Tax Relief Providers Do?
A tax relief service provider can help you file your taxes and give you guidance on how to save more money in the future.
They are also aware of the latest changes in the law, which means they can help you avoid any unexpected surprises on your tax return. The best part about working with a tax relief service provider is that they are less expensive than an accountant.
Tax relief providers offer services to help taxpayers reduce their tax liability. This can include tax planning, preparing and filing tax returns, and negotiating with the IRS on behalf of the taxpayer.
Tax relief providers may also offer other services such as financial planning and debt management. Or additional services or programs designed to help taxpayers save money on their tax bill through the use of deductions and credits.
These services can include free consultations with a certified tax professional, free online filing, or assistance with ensuring your taxes are filed successfully before the deadline date.
Red Flags-Why Should You Be Wary Of Some Tax Relief Companies
Many people are skeptical of the companies that offer tax relief services, and rightfully so.
Unreputable companies can put your personal information at risk by selling your information to 3rd party companies.
They may take advantage of customers by not including all services in their advertised price. This lack of transparency can make it seem like these companies are running a scam and they may well be.
There Are 3 Key Things To Look Out For When Considering A Tax Relief Company:
- First, be sure to research any company you want to deal with thoroughly. Look for online reviews and Better Business Bureau ratings.
- Second, be sure to ask lots of questions and get all the details in writing before agreeing to, or paying anything. Be sure you understand all the fees and charges involved.
- Finally, be cautious of any company that asks for upfront payment, guarantees a certain amount of savings, or seems too good to be true.
There are some things to watch out for when you’re looking for tax relief providers. Here are 3 red flags:
- They claim to have a long history in the industry. If they say they’ve been around for 50 years, but their website only has three years’ worth of information on it, that’s not a good sign.
- They offer instant refunds without any work on your part. Scammers will often offer an easy way out with no work needed from you. This is usually a huge warning sign.
- The company guarantees results within one week or 100% refund. This could be another warning sign. It might mean that the company is over-promising and might not be able to deliver on their promises.
Advantages Of Working With A Tax Relief Service Provider
There are advantages to working with a tax relief service provider.
A tax relief service provider can be extremely helpful, almost like having your own personal accountant.
They can help you save money on your taxes, negotiate with the IRS on your behalf, and help you plan for your future. They also keep up with changes in the law, so they can help you avoid any nasty surprises on your tax return. And, can also help you understand the tax code and how it affects you.
The best part is that tax relief service providers are affordable and not as expensive as an accountant.
You’ll work with them one-on-one. They’ll make sure everything is done right the first time so you don’t have to worry about additional fees or the IRS later on.
