What are tax settlement firms and what do they offer?
Most likely, you’ve seen the TV commercials. People in desperation, with no one to assist them, owe the IRS a large sum of money. The tax settlement company then gets involved, telling the alarmed customer that their tax liability has been suddenly lowered by thousands or even hundreds of dollars. Top things you should know about Tax Problems
The majority of tax settlement companies guarantee to send their specialists to negotiate on the client’s behalf with the IRS, hopefully convincing them to accept a significantly smaller amount, often fractions of the dollar. This is practically impossible to accomplish in reality, and any genuine decrease in the amount of taxes payable is rarely accepted by the IRS.
Are these companies legit and do they help?
That varies. There are many con artists and unethical business tactics in this field. Untrustworthy businesses attract clients with exaggerated claims while collecting excessive fees. Legitimate tax settlement companies do exist. These businesses charge fair prices that are made known upfront and are direct about whether or not you can use their services.
Getting in touch with a real tax relief firm
If someone is thinking about working with a tax settlement company, there are a few warning signs that should concern them. Any company that makes a big tax reduction claim to a client without first obtaining a thorough financial background on them is probably going to turn out to be a scam. A tax agent is not carrying out the whole due diligence procedure necessary for a successful appeal if they do not question a client why they owe the IRS money.
What is included in tax settlements?
There is usually a free consultation before the tax-settling process starts. After examining your present tax liabilities and other financial data, a case manager will provide you with a price for their assistance. If you proceed, your legal manager will thoroughly examine your taxes, create a strategy, and engage in negotiations with the IRS.
How does the IRS warn about tax settlements?
Of all the creditors that many people have to deal with, the IRS is arguably the hardest. It is legally able to take possession of assets and pursue harsh collection tactics. For this reason, the agency is far more scary to many guilty taxpayers than credit card firms or private debt collectors. Tax preparation businesses capitalize extensively on this anxiety by offering their clients a professional helpline that will solve all of their concerns. These companies make false claims, so don’t fall for it if they request large upfront fees.
There is always a danger in the tax settlement industry. It is usually preferable for people seeking help with their outstanding tax bills to have a tax or financial counselor recommend them to a skilled tax lawyer with years of expertise handling this kind of case. They must additionally be ready for an administrative procedure that could take months to complete and for a significant financial investigation.