Those who have received a demand notice from the IRS understand the frustrations that this makes them go through. They will think quickly and run to any place where they think help is available. Some of them will throw caution into the wind and hire tax resolution companies that may not have the right experience and ability to help them resolve their pending tax issues.
So are tax relief services legitimate or scam?
The answer to these questions depends on which company that you have chosen to handle your debt relief services.
True, there are tax companies that are experienced and reputable, and which can help you resolve your debt with the tax authorities and get an affordable tax repayment plan. But some scam companies make you believe that they can offer you tax resolution service, but they either cannot manage it completely or will offer you substandard service. For you to hire the best tax resolutions company, you should need to do some research before you decide on the company that will represent you.
How to hire a legitimate professional
When looking for a legitimate tax relief assistance company, here are a few considerations that you should look at.
1. Ensure that the professional is licensed
There are a few tax relief firms that speak like salespersons and this could be a red flag for anyone who is hiring tax relief services. They use a sales language to dupe you into signing up for their services. These associates have titles such as tax associate or tax consultant, and if you check at a deeper level, you will realize that they are not licensed to act in those capacities. They don’t have the legal recognition to stand before you in IRS negotiations; therefore they shouldn’t be providing tax consultations to anyone.
Also, some tax relief companies have more sales staff on their payroll than the real tax consultants, and this is a sign that the company will not look at your best interests. Instead, ensure that you speak to an Enrolled Agent (EA) or a Certified Public Accountant (CPA). Licensed lawyers who work as tax attorneys are also great to talk with.
2. Ensure that they are charging reasonable prices for their service
Some companies, although legitimate may be charging exorbitant prices. Whether you need a Streamlined Installment Agreement or an Offer in Comprise you should try to hire a company that charges a reasonable amount. On average, the amount that you are charged should not be more than $1500.
3. The tax company should value your privacy
There is a lot of personal and financial information which you will share when working with a tax relief company and the company that guarantees your privacy is the best to work with. Check and verify that the company has privacy policies in place to safeguard your information against scammers and identity theft scams.
Navigating the complicated web of taxation laws can be tedious and time-consuming. Anyone who is not a tax expert will find it hard to understand. There is a long list of requirements, paperwork, and forms to fill. These forms should also be presented to the IRS in the right format, and any mistake that you make may prove costly.