Most of us see on the television and internet, and even hear on the radio about those tax relief companies who are advertising on how they could relieve us from the distress of having to pay exorbitant back taxes. They usually ask for upfront payments amounting to thousands of dollars. They often claim that they can lessen and in some cases, eliminate tax debts through some legitimate processes they usually claim they are expert in. Yes, it is true that the IRS offers hardship programs but in reality many taxpayers do not qualify for these programs. Yet, when you ask most of these tax relief companies, they would give you false hope and hoodwink you into believing that you are indeed qualified for these hardship programs. Only afterwards, when you have already put your trust on them that you would realize that they are indeed out there to bury you further into debts. The best way therefore to avoid these fake tax relief companies is to ask directly the IRS about the IRS hardship programs on helping those who have reneged in their tax obligations.
Fresh Start Initiative
The IRS has different programs which could assuage the burden of paying your back taxes. The agency has that Fresh Start initiative. This may include an Installment Agreement which is definitely available to those who are incapable of paying their back taxes in full single payment. In this program, you are permitted to pay in installment. If you owe less than $50,000, you can apply with the IRS online. There is also the Offer in Compromise (OIC) which permits taxpayers to settle their back taxes in less than the actual amount owed. You can inquire about this program from the IRS. Likewise, IRS sometimes offers penalty abatement and interest abatement for those who are really qualified for them. For these reasons, it is better to inquire directly from the IRS about your payment options if you got back taxes.
However, if you are really intent on availing of the service of a reliable tax relief company, you should take into considerations some of the simple caveats on choosing a tax relief company. Indeed, there are tax relief companies who are really out there to help you with your problems and it would be good to separate the sheep from wolves by following some of these considerations.
How to Choose a Reliable Tax Relief Company
1. The first thing you should do if you are intent on availing of the service of a tax relief company is to do a background check on the company. Most legitimate tax relief companies are rated in the Better Business Bureau or BBB. You can check their record on BBB to know more about the rating of a particular tax relief company. Likewise, you can ask around from those you trust if they know a reliable tax relief company. Moreover, a good company will always display the feedback of their previous clients who availed of their services. You should try to check this before you get involved with a specific tax relief company. The earlier you check on these matters, the better you will know a company.
2. Check if the company categorically guarantees that you will be accepted or will readily qualify for the tax relief programs. Your intuition should tell you that there is a big possibility that this company is a fake one because IRS usually takes a deeper look into our tax debt situation and many of those who owe back taxes do not really qualify for these programs.
3. If the representative of the company readily tells you that they accept every case of tax debt cases, that company is really a scam, because a reliable tax relief company will definitely tell you how strong case or weak is your case beforehand. Likewise, they will give you a free consultation on the viable options you could take to assuage the burden of your tax debt.
4. You should also be wary of a company if the tax relief company asks you downright about full upfront payment. There is a strong reason to believe that this company is out to scam you. Likewise, you should take it as a cue if they ask for some sensitive information which may compromise your finances.
5. Tax relief experts can help you take advantage of the Offer-In-Compromise (OIC) program of the IRS. IRS approves OICs only on the following conditions: A doubt exists as to your capability to pay the full amount; a doubt exists on whether your tax liability is really proper and due; a special circumstance exists in which the collection of the owed tax is unfair or inequitable. A good knowledge of which OICs are approved by the IRS will definitely save you the burden of being scammed by fake tax relief companies.
IRS offers tax-relief programs to alleviate the taxpayer’s burden of paying tax debt. However, these programs are only acceptable for certain cases and thus it is good to be cognizant of the conditions for qualifying for these tax-relief programs. Knowing the IRS conditions will definitely help you sort out a good tax relief company and a scammer one.
Devin Finley is a freelance writer and tax relief expert. Devin writes on a multitude of financial and legal topics. He enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation. For more information Visit http://optimataxrelief.com/