Our current tax system can be overwhelming. Even if you believe that you paid all your taxes on time and followed IRS guidelines, the IRS may inevitably hit you with a bill for your back taxes, which are any unpaid taxes from the previous year.
Back taxes can be frustrating and expensive. You may be unsure where to start or how to go about paying back these taxes. You also may not have enough money to pay the bill the IRS sent you.
A tax relief company can help you through the stress and confusion of owing taxes to the IRS. These professionals will provide guidance on IRS tax relief programs and the audit process and can even negotiate your tax debt with the IRS. Read on to learn more about tax relief services and how they can benefit you.
What Is a Tax Relief Service?
A tax-relief service is a for-profit organization that assists you with repaying and negotiating back taxes. Often, these companies provide other tax-related services as well, such as tax filing assistance and accounting services.
What Services Do Tax Relief Companies Provide?
Tax relief companies can help you overcome your tax debt in several ways. The most common forms of assistance these companies provide include:
Helping You Understand IRS Tax Relief Programs
The IRS offers several tax relief programs to help taxpayers settle their back taxes and spread out their payments over a specified period. However, many people do not know about these programs, leading them to believe that their only option is to pay their IRS bill as soon as possible.
Tax relief service advisors can help you understand the different IRS tax relief programs and aid you in determining which programs you may qualify for. They can also walk you through the application process to become eligible for these relief programs.
All IRS tax relief programs fall under one umbrella term, the “IRS Fresh Start Program.” Here are a few options this program offers:
● Short-term repayment plans: Plans spanning 120 days or less for tax bills not exceeding $100,000
● Long-term repayment plans: Plans spanning more than 120 days for bills not exceeding $50,000
● Offers in compromise: Tax settlements for less than the original bill, dependent upon your ability to pay your taxes
● Interest abatement: Penalty forgiveness dependent upon your previous tax penalties and any payment arrangements in place
When you meet with an advisor from a tax relief service, they will review all these options with you and help you determine the best solution to pay your tax bill.
Negotiating Back Taxes with the IRS
Along with helping you understand the various tax relief programs available to you, tax relief companies can also help negotiate these programs with the IRS on your behalf. For example, if you are interested in applying for an offer in compromise to reduce the amount you owe, a tax relief service could help convince the IRS that you are worthy of this program.
Keep in mind that tax relief services can only do so much to help relieve your tax debt. Most often, these companies cannot negotiate any other relief apart from the programs the IRS offers. If a company claims to be able to negotiate your bill for pennies on the dollar, it is best to look elsewhere. Many companies try to take advantage of people struggling with tax debt.
Providing Tax Audit Assistance
Sometimes, the IRS requests to examine individuals’ and businesses’ tax returns through an income tax audit. If the IRS is knocking on your door for an audit, you can benefit from hiring a tax relief service to help you through the process.
Tax relief companies can provide tax audit defense by helping you appeal the decision to audit, representing you through audit hearings, and corresponding with the IRS on your behalf. This assistance can take the burden of an audit off your shoulders and ensure that you do everything right to receive the best possible outcome.
What Is the Tax Resolution Process?
Tax relief services typically follow similar processes to help you relieve your tax debt. You can expect a tax relief company to follow these steps:
- Conduct a consultation to understand your unique tax concerns and the scale of your debt.
- Ask you to sign a Tax Authorization Form to enable its tax professionals to complete a tax compliance check.
- Show you a list of all tax relief programs you may qualify for through the IRS or your state tax department.
- Assign your case to an enrolled agent, tax attorney, or CPA.
- Walk you through the steps of the best resolution process for your specific case.
Most tax relief companies only charge you a portion of your overarching costs upfront. However, you should always be sure that you completely understand a company’s billing process before signing any contracts.
Are Tax Relief Companies Scams?
Some people hesitate to seek tax relief services because they believe these companies to be scams. While there are certainly less-than-trustworthy tax relief services in the industry, others offer transparent, reliable tax relief assistance at affordable prices.
At Levy & Associates Tax Consultants, we provide trustworthy, professional tax assistance through an experienced team of consultants, accountants, tax attorneys, and former IRS officers. We’re prepared to help you make the most of IRS tax relief programs and settle your tax debt as efficiently as possible.
Contact our tax professionals today at 800-TAX-LEVY to learn more about our tax relief services.