If someone goes behind on their taxes, they could face serious financial implications such as wage garnishment and asset seizure. Fortunately, several tax relief firms may be able to assist anyone in reaching an agreement with the IRS to settle their tax burden for a lower amount than they owe. On the other hand, many tax debt relief organizations employed unethical methods to take advantage of desperate customers, tarnishing the entire tax debt relief industry’s name. The good news is that numerous trustworthy tax relief firms can assist in reducing the burden of tax debt. The difficult part is locating authentic, competent tax relief services that provide the services you require at a reasonable cost. Below are ways a tax relief company assists their customers to lower their tax debt.
Table of Contents
How Do Tax Relief Companies Work?
The revenue services provide tax relief as a mechanism for consumers to reduce their debt stress while still paying their taxes. It is vital to remember that tax relief alternatives only help people manage their tax debts, not eliminate them. It is entirely possible to arrange a tax relief plan with the revenue service. However, this strategy is difficult and time-consuming. The last thing someone needs is more stress if one is already dealing with debt and unpaid taxes. Tax relief firms such as those highlighted at Timesunion.com contact the revenue services on one’s behalf and deal with them. These firms employ experienced tax specialists, such as tax attorneys and accountants, who are familiar with the system and can devise tax relief plans, such as installment arrangements that are tailored to the client’s needs. Working with a professional tax relief agency can help alleviate the worry and financial strain of tax debt, but it comes at a price. Tax relief firms will typically provide a free consultation, but the real tax relief service can cost thousands of dollars. That is why many of the best tax relief companies have minimum debt limits in place to ensure the taxpayer does not end up paying them more money than they get through tax relief programs.
Key Steps in Reducing the Tax Debt Using a Tax Relief Company
- Selecting a Tax Relief Company
There are many tax relief firms out there, and deciding which one is ideal might be challenging. The majority of large corporations can work remotely and assist taxpayers in any state with tax issues. The company one chooses is mainly determined by their specific tax issue.
- Tax Relief Services Assessment
A free consultation is the first step in the process. It usually takes approximately 30 minutes, but it might take up to an hour. A tax professional will qualify the client and ask them questions about their tax and financial condition during the conversation to guarantee that they might benefit from tax services. In most circumstances, the customer will be able to grasp their options during this call.
- Tax Information Authorization Process
Clients begin by signing a Tax Information Authorization form once they have decided on a firm or an individual that is a licensed tax expert. If someone is representing a company, they will also be required to use the form. The form allows a licensed tax professional to perform a tax compliance check to determine what services their client may require as well as their tax options. Generally, revenue services will not engage with someone unless all previous returns have been filed. As a result, a licensed tax professional must be aware of the client’s tax compliance situation.
- Tax Resolution and Settlement Process Starts
After a licensed tax specialist evaluates one’s transcripts and understands their financial circumstances, the company will usually present a list of the revenue service tax programs they can pursue. It is commonly referred to as a compliance check. The tax relief firm will give the client a breakdown of the costs. If customers agree to the services and fees, the corporation assigns their case to a tax attorney, enrolled agent, or CPA who will represent them or their business. Before representation is activated, one will need to sign a Limited Power of Attorney form so that the licensed tax expert can address their tax concerns by directly contacting the revenue service agent or Officer.
- Settlement Approved and Taxpayer in Full Compliance
The client makes the needed payment once the revenue service approves the request. For example, if someone applies for an offer in compromise and the authority accepts it, one must pay the agreed-upon sum. The IRS is no longer a concern for them, but they must remain compliant with tax forms and payments for the stipulated years. Following that, as long as their payments are current and they comply with future filing requirements, they will remain in good standing with the revenue service.
