While there may be legitimate tax debt relief companies, there are also a lot of scammers. The Federal Trade Commission says that a company that demands payment before doing anything for you is a sign of a scam. Here are some other indicators to consider. 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. Tax relief companies are sometimes thought of as having a bad reputation because of customer complaints about false promises, high fees, and even blatant scams.
While it's absolutely true that the tax relief industry has some negative players, there are also many reputable tax relief companies with a proven track record of success. To help you tell the difference, we've rounded up the seven best tax relief companies in the industry. Unfortunately, the industry is plagued by scams and bad business practices. Disreputable companies lure customers with false promises while charging steep fees.
Still, legitimate tax settlement firms exist. These companies are honest about whether you can benefit from their services and charge reasonable rates, which are disclosed in advance. If you are the victim of a tax debt relief scam, file a complaint with the Alaska Attorney General's Office. ALG Tax Solutions offers a comprehensive library of free educational resources designed to empower consumers and prevent future tax debts.
With educational resources, tax relief companies can empower their clients with the knowledge and skills needed to avoid greater tax debt. My colleague Robin Scott-Hutchens, EA, wrote an excellent article in which he described what the IRS can confiscate when back taxes are owed. On the other hand, good tax relief companies will be honest about whether or not you can benefit from their services, won't make any promises about specific results, and will charge transparent fees up front. In reality, this is virtually impossible to do, and the IRS rarely accepts a real reduction in the amount of taxes owed.
Tax debt relief is a broad concept that encompasses a variety of options, each designed to achieve the best possible peace between taxpayers who have been left behind and the IRS. A good tax debt relief company will have a licensed tax professional who will analyze your specific tax debt situation and determine the best solution or combination of solutions to help you pay off your tax debt. We appreciate the company's commitment to helping customers find the best solution for their personal situation, regardless of whether that solution includes paid tax relief services. When you work with a tax debt relief company, you'll share a lot of personal and financial information.
The truth is that most taxpayers don't qualify for the programs offered by these scammers, their companies don't settle the tax debt and, in many cases, they don't even send the necessary documentation to the IRS requesting participation in the programs mentioned above. If you're confused about the tax settlement industry and what it does, think about the debt settlement business. Contact the Taxpayer Defense Service, an independent organization within the IRS, for free help if you have tax problems that you haven't been able to resolve yourself, if your problems are causing you or your business financial difficulties, or if you face an immediate threat of adverse action of collection by the IRS. In addition to this, the company offers many resources and services that are particularly valuable for those with a small tax debt.