How to Choose the Best Tax Relief Company for Your Situation
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How to Choose the Best Tax Relief Company for Your Situation
Dealing with tax debt can be incredibly stressful. The letters from the IRS, the threatening phone calls, the fear of having your paycheck or property seized – it’s enough to keep anyone up at night. But there is hope. Hiring a tax relief company can help you resolve your tax issues and get out from under the unbearable weight of tax debt. However, not all tax relief companies are created equal. You need to do your research to find the best tax relief company for your unique situation.
In this article, we’ll walk you through everything you need to know to choose the right tax relief company. We’ll cover what tax relief companies do, what to look for when evaluating them, red flags to watch out for, questions to ask, and much more. By the end, you’ll be equipped with the knowledge you need to confidently pick the best tax relief company for your needs.
What Do Tax Relief Companies Do?
- Negotiating with the IRS on your behalf to reduce penalties and interest
- Helping you qualify for IRS relief programs like Currently Not Collectible status or Offer in Compromise
- Assisting with unfiled tax returns
- Providing audit defense and representation
- Releasing tax levies and liens
- Stopping wage garnishment
- Setting up installment agreements or payment plans
Essentially, their experienced professionals handle all communications with the IRS for you. This saves you time, stress, and hassle. They use their expertise to get you the best deal possible.
Red Flags to Watch Out For
While researching tax relief companies, there are several red flags to watch out for:
- No verifiable address or physical location
- No tax professionals on staff or unclear credentials
- Refusal to provide references from past clients
- Lack of BBB accreditation or poor BBB rating
- Bad reviews and complaints online
- Vague promises of eliminating all your tax debt
- Requests full payment upfront before any services rendered
Legitimate tax relief companies will not exhibit any of these warning signs. Avoid any company that raises some of these red flags.
Match Your Situation to the Right Company
The best tax relief company for you depends on your specific tax situation. Here are some things to consider:
Amount Owed
If your tax debt exceeds $10,000, choosing a tax relief company is recommended. They have the experience to handle large amounts. For smaller debts under $10,000, you may save money negotiating yourself.
Type of Tax Debt
Certain companies specialize in business tax debt while others focus solely on personal tax debt. Choose one that deals with your type of tax issues.
Unfiled Returns
If you have unfiled returns, find a company experienced in getting clients compliant by preparing delinquent returns.
Wage Garnishment
If the IRS is garnishing your wages, opt for a company that provides emergency wage garnishment release.
Tax Liens
For tax lien assistance, pick a company specifically experienced in releasing tax liens quickly.
Take time to consider what tax relief services you need most. Then match those needs to a company that provides specialized assistance.
The Bottom Line
Dealing with the IRS on your own can be intimidating and result in missteps. The right tax relief company has the experience to negotiate and mediate on your behalf. They can help you finally resolve your tax debt and get your life back.
Just be sure to do thorough research to pick the best tax relief company for your specific tax situation. Check their reputation, credentials, fees, and customer service. Ask questions to vet their legitimacy. And avoid any company that raises red flags.