When taxpayers are searching for a tax relief company to help them with their situation, they can find recommendations on the internet, the radio, or even on the TV. Unfortunately, most of these companies are fraudulent, demanding taxpayers pay high upfront fees to get help with their back taxes and tax debt problems. Many taxpayers have been taken advantage of in their time of need by scammers claiming to be legitimate tax relief companies.
While there are professional tax relief companies that can help you settle your tax debt through legal tax relief programs, fraudulent companies do not provide the needed help. They advise taxpayers to apply for programs that they are not qualified for, they don’t file the necessary forms, and oftentimes they’re not even legally capable of representing taxpayers before the IRS. These companies do not provide their clients with results and do not provide refunds for the upfront costs.
It has even been reported by some taxpayers that these scam companies continue to charge their credit card or bank account, taking even more money than the upfront costs.
Find Legitimate Tax Relief You Can Trust
If you have tax debt and need help, there are honest, professional tax relief companies out there. However, you might be able to negotiate a payment plan on your own, without having to pay someone else.
While working with the IRS without help can be a good option for some people, other people with tax debt will need advice and assistance from a knowledgeable team. Professional tax attorneys, CPAs, and enrolled agents will be able to give you the advice you need when dealing with the IRS. A legitimate tax relief company should have most of these experts available to help with your tax situation.
These tax relief agents will be able to help determine the best program for your tax debt situation. If you are unable to solve your tax issues on your own, or you are uncomfortable dealing with the IRS, you’ll want to reach out to a reputable tax relief company such as the IRS Tax Relief Network. With the experience, results, and recommendations to back them up, you can be sure they are a tax relief company you can trust.
Tax Relief Options for Taxpayers
When you hire a company with enrolled agents or tax attorneys to help with your tax debt, they will determine the best relief option for you. However, if you decide to work with the IRS on your own, the program you apply for will be completely up to you.
You may want to submit an Installment Agreement Request form if you owe back taxes but are unable to pay the amount in full. If you have less than $10,000 in back taxes and meet other requirements, the IRS will not deny your request to make regular, monthly payments on your tax debt.
Even if you are going to file for an installment agreement, you should still pay as much of your debt upfront as possible. Any unpaid debt will be subject to penalties and interest, regardless of whether or not your installment agreement is approved. However, by entering into an installment agreement with the IRS, you can prevent further collection actions such as tax liens or levies.
While there are a handful of tax resolution programs to consider applying for depending on your situation, two of the most common programs are the installment agreement and an offer in compromise, in conjunction with the IRS’ Fresh Start initiative.
Installment Agreement
Installment agreements are available for those who cannot pay their tax debt in full at one time. With this program, taxpayers are able to make smaller, regular payments each month until the full amount of their debt is paid.
Thanks to the Fresh Start Initiative, installment agreements have a new threshold, increasing from $25,000 to $50,000 in tax debt with a higher maximum repayment term of six years. This means that any taxpayer owing less than $50,000 in back taxes can apply online for an installment agreement and will not be required to submit an IRS Collection Information Statement.
If you owe under $50,000 in taxes, you should be able to apply for the installment arrangement program yourself without help from a tax relief company. However, if you are uncomfortable doing so on your own or you have extenuating circumstances, you may want to contact the IRS Tax Relief Network.
Offer in Compromise
With an offer in compromise, taxpayers are able to settle their tax debt permanently for a smaller amount than they owe in back taxes. This is an important program that helps people in difficult financial circumstances who meet the qualifications. Taxpayers are only eligible for the program after all other options have been considered.
Changes under the Fresh Start Initiative have widened the group of people eligible for the offer in compromise. In order to approve the OIC, the IRS must see that the taxpayer will not be able to pay the lump sum amount or that an installment agreement will not work for them.
If you are going to apply for an offer in compromise, you may want the assistance of a tax professional. Talk to the team at the IRS Tax Relief Network for help.
Penalty Abatement and Interest Abatement
Penalty abatement and interest abatement are two options that the IRS may offer to those who meet very narrow criteria. While penalty abatement is given out more often than interest abatement, both are extremely uncommon.
With penalty abatement, the IRS agrees to forgive any penalties that the taxpayer incurred due to their tax debt. The less common interest abatement is an agreement for the IRS to forgive any interest from tax debt.
If the IRS agrees to penalty abatement or interest abatement, taxpayers have any penalties or interest forgiven, however, they still owe their back taxes. Some fraudulent tax relief companies will claim to provide a penalty or interest elimination. If a company makes this claim, it’s likely they are not legitimate and will only take your money without results. Eliminating penalties and interest typically only happens through penalty or interest abatement programs, which are difficult to be approved for.
Applying for Tax Relief Programs
The IRS makes it clear that taxpayers can apply for an installment arrangement, an offer in compromise, and a penalty or interest abatement without the help of a third party. However, those who are uncomfortable dealing with the IRS on their own may want to work with a professional tax relief company.
Be aware only certain types of tax professionals can deal directly with the IRS and negotiate with them on your behalf. Make sure you find a reputable tax relief company with the right tax agents available to represent you. Enrolled agents, tax attorneys, and certified public accountants are all approved representatives by the IRS.
If you are going to work with a tax relief company when you apply for a tax relief program, make sure you have an initial free consultation. You will be able to ask questions to ensure the company is professional and legitimate. Take the time to learn about their fee structure and understand what you will be charged and when. If the company requires upfront payment, be sure you thoroughly understand their contract and if they provide refunds.
Before you sign or pay anything, you will want to make sure that the company has qualified agents who can represent you with the IRS, that you understand their fee and refund structure, and that they have proven results. A reputable company will help determine the best program for your tax situation and will help you apply. They will represent you and ensure that you get the best results for your tax debt.
How Do You Qualify for IRS Forgiveness?
The IRS and state taxing agencies have multiple programs that can be used for tax forgiveness. Installment arrangements and offers in compromise are just two of these programs. If you have back taxes, you may want to work with an IRSTRN tax relief company to seek forgiveness from the IRS.
You will need to apply for the right program by submitting all necessary forms and providing the requested information. In order to qualify for tax forgiveness, you will need to submit information about your taxable and non-taxable income, as well as the size of your family and other specific information.
The IRS will take into consideration your income, expenses, and other important details of your situation in order to determine whether or not you qualify for tax forgiveness. The tax relief company you work with will help you understand the likelihood of getting tax forgiveness before you apply.
