Tax Relief Starts Here
Tax Relief Companies: How They Work & How to Find the Best Company
Taxpayers owing the IRS or other government agency soon discover that past due taxes are not a matter for the faint of heart. Unlike credit card companies and other lenders who often end up taking a loss when a consumer fails to pay; tax collection methods are aggressive and almost always successful. Due to complicated tax laws and very personalized finances, individuals owing taxes often feel overwhelmed and frustrated by the entire process of dealing with the IRS. While uncomplicated tax bills may be easily handled by the taxpayer, in many cases a tax relief company or tax professional is the best way to address back tax issues. Before entrusting your current and future finances to a third party, it is best to know what these professionals do and how to spot companies which should be avoided.
What Is A Tax Relief Company?
There are several different professions with trained individuals able to help individuals with taxes. Which profession is best for you depends on your current tax situation. Where accountants and other individuals trained to prepare taxes can help you save money and file your taxes correctly, a tax relief company comes into play when you are at the point of owing the IRS. In most cases delinquent tax bills are already an issue before an individual turns to a tax relief company for assistance. Like any other industry there are reputable and not so reputable individuals and companies providing tax relief services. A good tax relief company will offer a free consultation to discuss your tax issues and financial needs before determining whether or not they are able to take your case. If after looking over your information the tax relief company feels they are in a position to provide assistance with your back tax issues, they can then develop a plan to help you deal with the IRS. It is imperative that the tax relief specialist have access to all financial information in order to made an informed decision regarding your tax situation. Once a tax relief company takes your case, they then become your representative when dealing with the IRS. This alone is considered a benefit in that a trained professional is now on your side and able to act as an IRS Power of Attorney. It is for this reason that taxpayers must pay close attention to the company with which they work as in many situation all future communication regarding your tax issue will take place between the IRS and the tax relief company.
There are a few red flags that you should be aware of in order to avoid working with a tax relief company that may not be reputable. Unfortunately there are many companies in financial industries that prey on individuals struggling with debt and tax issues. To avoid working with this type of business look for the following red flags that may be a sign of trouble.
- Upfront fees- While it is not unusual for some companies to charge a small retainer fee, most will have a very specific fee structure based on performance and services rendered. Companies charging large upfront fees are often trying to collect money before providing good service or in worst case scenarios any service at all.
- Guarantees- Again, a good company may provide a guarantee to back up their service, however some companies “promise” results before seeing your information. Without seeing your specific case, it is impossible to promise guaranteed results.
- Company reviews- Many consumers would benefit by taking the time to research tax relief companies before doing business. The Better Business Bureau and other online sources can provide a wealth of information regarding past customer experiences. These reviews are often subjective, however a majority of reviews indicating past trouble for customers may be a sign that the company you are considering is not operating in good standing.
Taxpayers owing back taxes can benefit from the expertise and experience provided by a tax relief company. Knowing what type of company with which to work, and those which should be avoided is the first step in resolving back tax issues.