Are Tax Relief Companies Better Than CPAs for IRS Debt?

Are Tax Relief Companies Better Than CPAs for IRS Debt?

If you owe money to the IRS, you may be wondering if you should hire a tax relief company or just go to a CPA. Both can help you deal with the IRS, but they take different approaches. Here’s what you need to know to decide which is better for your situation.

What Tax Relief Companies Do

Tax relief companies focus specifically on negotiating with the IRS to reduce the amount you owe. They have experience dealing with the IRS and know the various programs available to taxpayers with IRS debt, like:

• Offers in compromise – Settling your tax debt for less than the full amount
• Currently not collectible status – Pausing IRS collection efforts if you can’t afford to pay
• Penalty abatements – Getting penalties waived due to reasonable cause
• Installment agreements – Setting up a monthly payment plan

Tax relief companies will analyze your financial situation, determine which programs you may qualify for, and handle all the paperwork and communication with the IRS. This can save you a lot of time and stress.

What CPAs Do

CPAs are tax professionals who can help you in a few ways:

• Prepare your tax returns accurately to avoid errors
• Advise you on tax planning to reduce your future tax liability
• Represent you in an IRS audit if you get audited
• Negotiate with the IRS on your behalf, but this is not their specialty

So while CPAs can sometimes help with IRS debt, their main focus is preparing returns and giving tax advice. They don’t have as much experience specifically dealing with IRS debt settlement.

Key Differences

Here are some key differences between tax relief companies and CPAs:

• Tax relief companies specialize in IRS negotiations – CPAs have tax expertise but may not regularly work with the IRS on debt issues.
• Tax relief companies know the ins and outs of IRS relief programs – A CPA may not be as familiar with things like offers in compromise.
• CPAs focus on tax preparation and planning – Tax relief companies focus specifically on resolving IRS debt.
• CPAs may charge by the hour – Tax relief companies often charge flat fees.

When to Choose a Tax Relief Company

Here are some situations when a tax relief company may be preferable to a CPA:

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2024-03-21

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2024-03-18

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Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

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2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

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2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

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2024-03-12

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2024-03-12

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2024-02-28

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2024-02-24

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• You owe the IRS a large amount, like over $10,000.
• You haven’t filed returns in multiple years.
• You have complex tax issues a CPA may not have experience with.
• The IRS has taken aggressive collection actions against you, like wage garnishment or bank levies.
• You want someone to handle communicating with the IRS for you.

With large, complex tax debts or aggressive IRS collection actions, the expertise of a dedicated tax relief firm is often needed.

When to Choose a CPA

Here are some situations when a CPA may be the better choice:

• You just need help catching up on filing late returns or fixing errors.
• Your debt is under $10,000.
• You mainly need help managing your finances and future tax planning.
• You are comfortable talking to the IRS yourself.
• You’re going through an IRS audit.

For smaller, simpler tax debts, or if you just need tax help in general, a CPA may be able to assist you effectively.

Key Tips for Choosing a Tax Relief Company

If you do decide to go with a tax relief company, make sure to choose a reputable one. Here are some tips:

• Look for companies with a long track record and many positive reviews.
• Avoid any company that asks for upfront payment before providing services.
• Make sure the company has tax attorneys and enrolled agents on staff.
• Ask about their success rate negotiating with the IRS.
• Get fee information in writing first.

Taking the time to vet tax relief companies carefully is important to avoid scams. The IRS website has more guidance on choosing a tax professional.

The Bottom Line

Dealing with IRS debt can be confusing. Both tax relief companies and CPAs can provide assistance. For large, complex tax debts or aggressive IRS collection actions, specialized tax relief firms often provide the best chance of substantially reducing what you owe. But for smaller debts or mainly just needing help with compliance, a CPA may be able to effectively assist you at a lower cost. Do your research to pick the tax pro that best fits your needs.