How do tax relief services work?

That fee can reach thousands of dollars,. Tax relief companies regularly use the Internet, radio and television to advertise their services to struggling taxpayers. Basically, tax relief companies work by negotiating with the IRS on your behalf for a fee. That fee can run into the thousands of dollars, with no guarantee that they will be more successful than if you negotiated with the IRS on your own.

If you meet specific criteria, you may qualify for a criminal sanction. If you qualify, the IRS will forgive you for any penalties charged on your tax bill. You will continue to owe the taxes you owe, but the penalties will be eliminated, so your total debt will inevitably be lower. You may be able to find a tax relief through what is called a commitment offer.

This allows you to settle your back taxes with the IRS for less than you owe. According to the IRS, it may be an option if you can't pay your tax debt at all or if doing so creates financial difficulties. Working with a tax relief company usually starts with a free consultation. You'll talk to a representative, give them details about your tax problems, and the company will quickly analyze your situation to determine which tax relief service can help you.

The answer to this question really depends on the company you use for your tax debt relief service. Yes, there are legitimate tax relief companies that can help you reduce your tax debt or sign up for an affordable repayment plan. However, there are also a lot of fraudulent companies. Do some research before choosing a tax debt relief company that represents you.

Generally, the garnishment continues until the debt is paid, but tax relief companies can help by securing alternative repayment agreements. Their 30-day money-back guarantee is also quite generous, as many, but not all, tax debt problems can be resolved within three to four weeks. Often, you'll hear announcements from tax debt relief companies about “cents for the dollar” settlements. Several warning signs should alert potential clients who are considering hiring a tax settlement company.

The IRS often doesn't know what tax deductions or credits you might have qualified for, leading to a higher bill than you might have had if you had done it yourself. While it's entirely possible to negotiate common tax debt problems yourself directly with the IRS, consulting a professional can often provide greater peace of mind. The current non-collectible (CNC) status means that both you and the IRS agree that while taxes are owed, you are currently unable to pay them. We chose companies that could deal with federal and state tax issues and that were available across the country.

The number of customers who get satisfaction from tax settlement companies is negligible and most are practically in financial distress. However, if your tax debt case involves multiple bank accounts, assets, outstanding tax years, and other details that complicate your tax situation, a tax relief company can help you by analyzing your documentation and identifying the best options available. In reality, this is virtually impossible to do, and the IRS rarely accepts a real reduction in the amount of taxes owed. In addition to its experience, Optima Tax Relief offers a free consultation and a 15-day money-back guarantee.

Your tax professional handles all documentation related to the request for a settlement or payment plan. .