Tax Debt Relief – 3 Dangers of Using a Tax Relief Company

Tax Debt Relief – 3 Dangers of Using a Tax Relief Company

You’ve heard them advertising all over the TV and radio.  IRS Tax debt relief companies claiming that they can help you resolve your debt for next to nothing.  But don’t be fooled!

Most tax  debt relief or tax resolution companies are not even run by professionals.  Their goal is to make money off of you and run, leaving you with an even worse tax problem than when you first started.

Be aware of the following 3 dangers when dealing with a tax settlement firm:

1. Outlandish and hidden fees

It is all too common that huge fees well over $4,000 are charged by a tax relief company, where the client doesn’t even have full access to a tax attorney as commonly promised.  Clients are treated poorly, rarely get timely responses and fall prey to additional fees that were hidden in their original contract.

To make matters worse, tax relief company representatives rarely know what they are doing and certainly don’t know how to deal with IRS representatives or tax law.  Due to the tax debt relief company’s inexperience, taxpayers that have hired tax relief companies have longer resolution times (and many times, no resolution), thus incurring more fees.

Don’t get locked in to their schemes and avoid them at all costs.

2. Unprofessional, inexperienced and dishonest advice from TAX DEBT RELIEF companies.

Unfortunately, many tax relief company representatives give bad advice.  For example, they consistently lie about taxpayers qualifying for an offer in compromise or settlement of their tax debt.  Also, the way they advertise makes it seem that most taxpayers will qualify when many will not.  This is misleading and causes many vulnerable taxpayers to wrongly believe that they can help them.

Tax relief companies often get a taxpayer’s name from tax lien lists, which are of public county record.  They then harass and use scare tactics such as telling you that if you don’t hire them immediately, you will go to jail or be charged with tax evasion/fraud or that the IRS will take everything they own.   They often manipulate and bully to make the sale. If you start to feel this type of pressure, back away and find someone that is more honest and professional.

These dishonest and deceitful sales practices are common place when dealing with tax relief companies.  Do not be a victim and take your money elsewhere….to a professional tax attorney that can be held accountable.

3. High employee turnover often going out of business

Tax settlement firms are notorious for having high employee turnover.  The reason is pretty obvious.  Their sales people know how to sell, but know next to nothing about tax law and resolving tax problems.  They are continually replaced and the client-taxpayer suffers.

Due to poor credibility that starts to build up and horrible customer service, tax resolution companies go out of business pretty quickly.  When quantity, not quality is the focus, the result is catastrophic on a business.  Also, it is pretty tough to compete against tax attorneys and tax law firms who are the real tax attorneys best suited to resolve people’s IRS tax problems.

Taxpayers needing assistance in dealing with IRS tax problems should seek the advice of a knowledgeable tax attorney.  The Los Angeles Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation for tax resolution at (310) 494-0100. We look forward to helping you.

This IRS tax relief blog post is not intended as legal advice and should be considered general information only.

 

Keywords:  Tax Relief Companies, Tax Resolution Companies, Tax Settlement Firm, IRS tax problems, tax debt

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IRS Tax Problems – Get Help Now -Don’t Wait

IRS Fresh Start Program –  get help now with your tax problems.

If you have tax debt and are having a hard time paying off your back taxes, take advantage of the IRS Fresh Start Program.  This program makes it easier for taxpayers to negotiate with the IRS and get out of IRS debt.  It is unknown for how long it will last, so it is a good idea to start the process of resolving your tax debt.

The three main changes to IRS tax laws introduced by the IRS Fresh Start Program include:

1. Higher thresholds for tax Liens and ability to withdraw tax liens

The IRS agreed to stop issuing tax liens to anyone with under $10,000 in back taxes.  Also, you can now request (through form 12277 Application for Withdrawal) that your tax lien be removed if you fit into one of two scenarios:   (1) you paid your tax lien in full or (2) you enter into a direct debit installment agreement.  See more about Tax Lien Withdrawal requirements on the IRS website.

2. Expanded access to streamlined installment agreements

Before the IRS Fresh Start Program initiative, the IRS would not allow you to qualify for the installment payment program until you provided detailed financial statements.  With these financials, you would have to show the IRS that you could not afford to pay them in full or that you needed a payment plan.  Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years) without submitting a financial statement.

There is also a new test program that was extended allowing individual taxpayers owing an assessed balance between $50,001 and $100,000.  The payment terms are over 84 months with financials not required if a direct debit or payroll deduction is put in place.  If not put in place, then a financial statement is required.  See Forms 433F and 433A.

If you owe more than $100,000 or need more than 72 or 84 months to pay off your tax debt, financial statements are required.

3. Expansion of the Offer in Compromise Program

This IRS Fresh Start program allows you to negotiate your debt with the IRS and offer a settlement amount of less than you actually owe.  The Fresh Start changes make it easier to qualify for an IRS Offer in Compromise giving the IRS additional flexibility in the way they determine whether a taxpayer is qualified.

For anyone struggling with large levels of IRS back taxes debt, it is highly advisable to hire a tax attorney to help you deal with your outstanding debt.  It is becoming increasingly difficult to negotiate with the IRS, even with the IRS Fresh Start Program.

Taxpayers needing assistance in dealing with IRS tax problems should seek the advice of a knowledgeable tax attorney.  The Los Angeles Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation for tax resolution at (310) 494-0100. We look forward to helping you.

This blog post is not intended as legal advice and should be considered general information only.

 

Keywords:  IRS problems, IRS Fresh Start Program, tax lien withdrawal, back taxes, IRS debt, offer in compromise

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