How Do Tax Debt Relief Companies Work

In this article we want to tell the story of how irs tax debt relief programs work in real life and one of our favorite clients ethel we don t need easy we just need possible.

How do tax debt relief companies work. Tax settlement firms use an accepted irs procedure known as an offer in compromise in an effort to reduce their clients tax bills. Sometimes the solution is asking lenders to lower the interest rate and reduce the monthly payment. Settling tax debts with the irs isn t easy but it isn t a scam. Taking over communication with the irs to save the client from overwhelming communications.

That fee can reach into the thousands of dollars with no guarantee that they ll be any more successful than you d be if you negotiated with the irs on your own. Helping negotiate payment agreements with the irs. Tax relief companies can navigate the process to remove liens for clients. Tax levy the irs legal right to seize property for unpaid taxes.

Tax relief companies employ tax experts including tax attorneys certified public accountants and enrolled agents who serve as intermediaries between their clients and the irs. Essentially tax relief companies work by negotiating with the irs on your behalf for a fee. There are a number of methods that tax relief companies take to help their clients resolve their tax debt issues. These are just a few of the ways that accredited companies can help.

Reviewing or filing old tax returns to lower a client s debt. Tax relief companies aim to help taxpayers lower their level of debt provide guidance on audits and help form payment agreements with the irs. Such companies may even be able to stop potential penalties such as wage garnishments. Tax relief companies use the radio television and the internet to advertise help for taxpayers in distress.

Debt relief programs offer consumers a fair and workable way out of financial problems. This is a special agreement that some taxpayers are able make. If you pay them an upfront fee which can be thousands of dollars these companies claim they can reduce or even eliminate your tax debts and stop back tax collection by applying for legitimate irs hardship programs. The irs charges a failure to pay penalty of 0 5 of your unpaid taxes per month or part of a month plus interest.

A tax levy represents a more drastic measure than a tax lien. Wage garnishment the irs collects owed taxes directly from a taxpayer s paycheck. The programs help consumers make payments they can afford while simultaneously reducing and eventually eliminating the debt.