– Tax Relief –
Tax debt is more common than you could ever think. 13.1 million Americans were behind on their taxes in 2018 -nearly one out of every 20 people.
Delinquencies totaled $128 billion, averaging just $10,000 in shyness per person.
But what do you do when you come down with the IRS to five debt figures?
Tax delinquency will lead to the garnishment of wages and seizure of properties that will further affect your finances and may even plunge you further into debt.
Therefore, some people turn to firms with tax relief as an alternative.
Tax relief companies are sometimes thought to be disreputable because of customer complaints about false promises, high fees, and even downright scams.
While it’s absolutely true that the tax relief industry has some poor players, there are also plenty of reputable tax relief companies with proven records of success.
What is Tax Relief?
Tax relief is any tax cuts that an individual taxpayer or business company owes, including tax deductions and tax credits.
For example, a tax credit can incentivize homeowners to make energy-efficient repairs, and a tax deduction can decrease the overall tax burden for those affected by a natural disaster.
People who owe a tax debt often seek tax relief to reduce the amount they owe to the IRS or state tax agencies.
Those who didn’t file a tax return misfiled their return or were unable to pay taxes to end up owing a tax debt that accrues penalties and interest.
Many people facing this tax burden do not have enough liquid assets to pay the full amount at once and require help.
Tax resolution companies specialize in tax reduction strategies to resolve back tax debt and unfiled returns, including installment plans.
IRS debt tax relief professionals also negotiate with the IRS and state tax commissions on behalf of their clients.
How Does it Work?
Tax relief companies hire tax professionals, including tax lawyers, certified public accountants, and registered agents who serve as intermediaries between their clients and the IRS.
These tax experts work with the IRS to find ways for consumers to resolve their tax debt.
IRS debt help experts also help consumers by negotiating tax relief programs, tax debt settlement agreements, or tax debt installment agreements.
The IRS offers various tax debt relief programs. Taxpayers can apply for tax relief from the IRS directly or hire a tax relief company to help negotiate on their behalf.
If you owe a tax debt of more than $10,000, it’s smart to hire a tax relief professional who has experience negotiating with the IRS.
When you work with a tax relief company, its professionals negotiate a tax relief program for you. Some IRS tax relief programs, like innocent spouse relief, remove improper tax liabilities.
Others, like the release of wage garnishments, stop the IRS from seizing your wages or assets to pay back taxes.
Tax relief companies use different types of contracts — some tax relief companies require clients to sign a contract, while others do not require customers to sign any paperwork and allow them to start and stop work at their discretion.
Any contract you sign with a legitimate tax relief company should clearly define the scope of the work, the payment schedule, and how you’re billed.
How Much Does Tax Relief Cost?
Tax relief costs range from $750 to $10,000 or more, depending on your tax debt circumstances. Generally, the price of tax resolution services varies based on the complexity of the case.
A case of average complexity typically ranges from $2,000 to $7,000. Complicated tax situations are more expensive because they require additional work and documentation from the tax relief company.
Highly complex tax relief cases cost up to $8,000 or more to resolve. Tax relief companies might charge as little as $250 for penalty abatement or upwards of $10,000 for an offer in compromise (OIC) case.
After a free initial consultation, tax relief agents usually charge a $400 to $600 setup fee. Tax relief companies vary on how they bill clients after this, however — tax resolution fees can be time-based, debt-based, or a flat fee.
- Time-based fees are charged at an hourly rate, and the total cost is based on how long it takes the tax relief company to handle a client’s case.
- Debt-based fees are set based on a percentage of the total tax debt the client owes.
- Flat rates are set based on the service and do not change regardless of the size of the debt or how long it takes the tax relief company to perform that service.
Tax Relief Companies
1. Anthem Tax Services
Anthem Tax Services’ money-back guarantee is the only one of its kind in the tax relief industry.
The guarantee has no time limit and promises to return your fees should the company fail to make any change to your IRS tax debt repayment schedule.
Many tax relief companies don’t offer a money-back guarantee at all. Others offer a full refund for the first 14 or even 30 days. Anthem Tax Services, however, offers a unique, no-time-limit guarantee.
If the IRS refuses to reduce either your total debt or your monthly payment amount, the company will refund any fees paid for its services.
- Offers a money-back guarantee with no time limit
- Payment plans available
- Accredited by NATP and NAEA
- Money-back guarantee doesn’t ensure a reduced total payment amount
- Mixed customer reviews
- No consumer education focus
CommunityTax doesn’t have the lowest minimum debt requirement in the tax relief industry, but we still felt it deserved the Best for Small Tax Debt title.
Due to its ample resources and services aimed at those with lower amounts of debt.
Individuals with tax debt under $10,000 may even find all the help they need for free through CommunityTax’s generous free online resource library and mobile app.
- Minimum tax debt of $5,000
- Offers a 14-day money-back guarantee
- IRS-approved continuing education provider
- Free Community Tax Assurance Program with mobile app
- Pricing less straightforward than competitors
- Some consumer complaints regarding state tax issues
- Chat support lacks functionality
Tax Defense Network
Tax Defense Network offers bilingual tax assistance to those who speak Spanish and may be struggling to communicate with the IRS. With the company’s long-standing good record, we’d recommend them as a trusted intermediary for Spanish speakers with tax debt.
Dealing with the IRS on your own can be overwhelming, but even more so when English isn’t your first language.
However, If someone you know is struggling with tax debt and speaks Spanish as a native language, Tax Defense Network can help.
The company has bilingual tax professionals on staff and a dedicated customer service line for assistance in Spanish.
- Offers tax relief services in English and Spanish
- A minimum debt of $2,500
- In business since 1997
- Website only available in English
- No guarantee
- Not accredited by any industry organizations
ALG Tax Solutions
ALG Tax Solutions offers a complete library of free educational resources designed to empower consumers and prevent future tax debt.
We appreciate the company’s commitment to helping customers find the best solution for their personal situation, regardless of whether that solution includes paid tax relief services. This earns ALG Tax Solutions its place as the tax relief company with the Best Resources.
- Online library with free eBooks, calculators, and resources
- Offers services tailored to individuals, self-employed, and businesses
- Low-cost tax help evaluation is available
- No guarantee
- Not recognized by major tax industry accreditation organizations
- Only helps with state taxes in Michigan
Fortress Tax Relief
If you have a large tax debt, standard percentage-based fees will vastly overcharge you compared to the amount of work required for your case. Fortress Tax Relief’s hourly-based fee structure gives you the best opportunity for savings with a major IRS tax debt.
It’s common for tax relief companies to calculate fees based on a percentage of the overall tax debt you currently owe to the IRS. With large tax debt, this can quickly add up to an exorbitant amount that doesn’t reflect the number of hours required to resolve a higher-debt case.
For example, a $20,000 debt probably won’t take twice the amount of work to resolve compared to a $10,000 debt.
- No percentage-based fee structure
- Offers a monetary customer service guarantee
- Handles state tax debt in all 50 states
- Minimum tax debt of $15,000
- Not accredited by any industry organizations
- Limited business services
It’s important to realize that tax relief companies do nothing you couldn’t technically do on your own by working directly with the IRS.
As experienced professionals, tax relief companies will pay for themselves. This is done by negotiating more effectively and generating a better outcome.
We hope our article will help you with your questions. And that this helps you make the right decision about the mold cleaner you need.