When it comes to dealing with your tax debt, you need to know that you’re working with a reputable agency. And while many companies are offering back taxes resolutions services, not all of them are equally qualified for the job. To determine whether or not a tax resolution company is right for you, consider these five things:
1. Choose a tax debt relief firm with a long history of success in helping customers deal with tax debt.
One thing to look for in an agency is a long history of success in helping customers deal with tax claims. You want to find someone who has been around for years, not just months or weeks. A company with longevity will be more likely to have perfected its methods over time. It may have established relationships with local government officials, which can aid them in negotiating lower payment amounts (or even complete relief) on behalf of their clients.
Another way to gauge whether or not a company is trustworthy is by looking at how many people they’ve helped successfully resolve their tax issues. If you see multiple testimonials from happy customers, they likely won’t try to deceive you into paying extra fees or spending money on things that don’t help your case!
Make sure your chosen tax resolutions agency knows the wide variety of tax relief programs the IRS offers and can tailor the best payment arrangement for you. Here are the standard tax relief programs offered by the IRS to reduce your liabilities and penalties:
Offer in Compromise
You might possibly pay off your outstanding tax debt by offering an amount less than what you owe. The IRS will evaluate your offer and determine whether it’s reasonable based on your ability to pay and other factors. If they approve your offer in compromise, they’ll let you know how much money you need to settle for them to consider a settlement agreement.
Installment Agreement
It is an option the IRS offers for those who cannot pay their taxes in full at once. The agreement allows taxpayers to pay their taxes over time and avoid penalties and interest accrual.
Penalty Abatement
Penalty abatement is a way to reduce the total amount of penalties you have to pay on your taxes. The IRS may also grant the reduction or elimination of your penalties if caused by unforeseen circumstances, such as natural calamities or other occurrences beyond your control.
2. Confirm the company is appropriately licensed in your state and check its tax debt relief credentials.
Check the company’s license in your state.
If you live in a state requiring tax debt reduction companies to be licensed, ensure the company is properly licensed. A quick Google search will reveal whether or not your state requires these tax companies to be licensed and how much it costs to do so. The IRS also has information on state requirements for tax professionals, including when they must obtain such licenses and how much it costs them every year.
If a company isn’t adequately licensed, it could mean that its employees are unqualified for their positions or that the agency doesn’t want anyone looking into its practices. Either way, this could reflect poorly on both parties involved—you and them!
3. Ensure the company has received accolades from reputable third parties, like the Better Business Bureau or Consumer Reports.
The Better Business Bureau (BBB) is a reliable and excellent validation when looking for an agency. The BBB gets its information from customers and businesses, so it’s best to check that the company you’re considering has an A+ rating. If it doesn’t, then keep looking!
Another option is Consumer Reports, which will provide unbiased information about the services offered by different companies. You can also find Yelp reviews on your favorite search engine—these sites are great places to get other people’s opinions about the various agencies out there.
It would be best if you ensure any agency, you choose is licensed in your state; this way, they can legally represent you with the IRS and other government entities related to taxes or debt collection services. They must also have references from past clients who were happy with their service; ask them if they have any such references before deciding on one particular agency over another.
4. Choose a company that’s transparent about its fees and offers easy-to-read contracts.
You’ve heard the well-known saying, “you get what you pay for.” When it comes to tax relief companies, we couldn’t agree more.
Make sure you understand the costs and conditions before signing a contract. A standard price is the “retainer,” which is an upfront payment you make to the agency to get their services. It may also be known as a “setup fee.” It would be best if you also looked at “maintenance fees” or “monthly fees,” which are recurring payments charged by most agencies for ongoing debt relief services, including regular consultations with financial counselors (unless you are opted out of those).
Make sure the contract is written in plain language. If not, ask questions—and if you’re unsatisfied with the answers, find another company!
5. Look for compensation guarantees.
When it comes to tax debt relief agencies, compensation guarantees are extremely important. They protect you from being charged for services you don’t need and not getting a refund if you feel like the agency didn’t help you reach your goals. So look for companies offering these guarantees before deciding who to hire.
In addition, you don’t want to sign up with a company that doesn’t have a clear way of communicating with its clients and answering questions about their services or fees because then you won’t know what to expect when things go wrong!
If you select an experienced company with a proven track record, you should be able to feel confident about working with them to manage your debts more effectively.
- Look at the company’s history of success. If you’re looking for a tax debt resolutions agency, check to see if the company has a proven track record of helping clients pay off their debts.
- Check the company’s credentials. Make sure that any potential tax bill forgiveness agency has been in business for several years and is licensed by your state or local government to provide these services.
- Verify that the agency meets all legal requirements as required by law in your location before signing any contracts with them so that you can feel confident about working with them in order to manage your financial situation more effectively, especially since dealing with creditors can be stressful enough without having to worry about whether or not someone is legally qualified or authorized to represent themselves as an expert on this subject matter!
If you’re looking for a tax relief company, you should be able to find one that meets your needs and offers the right services. Remember that it’s not just about finding the best price; it’s also important to consider how long they have been in business, what third-party honors they have received, and whether or not they offer compensation guarantees.
Contact our licensed tax experts to get a free consultation if you want more information about debt relief and options.
