In a difficult financial situation, having a large tax obligation can be an unbearable and distressing burden. People who owe the Internal Revenue Service thousands of dollars can, thankfully, seek assistance from trained professionals. There are a variety of payment arrangements that may be negotiated with the Internal Revenue Service and state tax agencies, and tax relief companies have tax experts on staff who can assist you in exploring these choices. Continue reading to learn more about the most reputable free tax relief services, their costs, and how they really work.
What Is a Tax Relief Company?
Tax relief companies, sometimes known as tax settlement firms, are for-profit corporations that offer to negotiate with the Internal Revenue Service (IRS) to decrease your overall debt or monthly payment. Tax relief companies are also sometimes referred to by their former name. In exchange for providing this service, the companies charge a fee to their customers; nevertheless, the customers have the expectation that the cost will eventually pay for itself due to the increased likelihood of the company successfully negotiating better terms.
Taxpayers typically contact tax relief organizations when they have received repeated letters regarding a debt from the IRS and are now scared that they may suffer wage garnishment or asset seizure as a result of the debt. If you owe more than $10,000 in back taxes, it is recommended that you get in touch with a tax relief organization for assistance. In general. Any amount lower than this indicates that the company’s expenses will not be worthwhile in the majority of instances.
Best Tax Relief Companies
The following are the best tax relief companies you should know.
#1. Precision Tax Relief
Precision Tax Relief excels in customer service, usability, and value. When compared to other tax relief services, this one stood out as the most reliable. Precision Tax Relief was the clear winner after we compared them to other tax relief firms. The first and most important feature is that it has one of the longest money-back guarantees in the business, which lasts for 30 days. If I can’t meet your needs in the first month, I’ll refund your money.
The company offers a flat-rate price that is discussed in detail during a free initial consultation. Only if the scope of work changes from the initial quote due to missing information will the price go higher. Options for payment include either immediate, one-time payment or a no-interest installment plan. Customers are not required to have a specific amount of debt in order to use Precision. However, a customer support representative said that their base service price may not be worthwhile for taxpayers with a debt of less than $10,000 if no other factors are involved. However, they only accept instances when the potential debt relief is sufficient to justify charging for their services.
#2. Anthem Tax Services
The money-back-guarantee offered by Anthem Tax Services is unique among companies providing tax assistance. If the organization can’t adjust your IRS repayment terms, they’ll refund your money for an endless duration. However, many businesses that provide tax relief do not provide any sort of refund guarantee. Others provide a risk-free trial period of 14, or even 30, days. But no other tax service comes close to matching AnthemTax Services’ unmatched, lifetime guarantee. If the IRS doesn’t reduce your debt or monthly payment, the corporation will repay you.
Anthem Tax Services’ money-back promise does not guarantee a decreased tax bill from the IRS. The company may be able to reduce your monthly payment, leaving you with the same total debt but more time to repay it. However, while this may ease your financial stress in the short term, it won’t end up saving you money. However, keep in mind that a bigger total payment to the IRS is the result of interest charges accrued over a lengthier repayment term.
#3. Fortress Tax Relief
If you owe the government a substantial amount of money in back taxes, the typical percentage-based cost will grossly exceed the amount of work that needs to be done on your case. Fortress Tax Relief’s hourly rate structure benefits those with large IRS tax burdens. Commonly, tax relief firms will base their costs on a percentage of the total amount of back taxes you owe the IRS. When dealing with substantial tax debt, this can quickly add up to an excessive sum that is out of proportion to the time spent on settling a case with more tax debt. For instance, if you have a debt of $20,000, for instance, it generally won’t take twice as much time to resolve as if the obligation were only $10,000.
#4. CommunityTax
CommunityTax’s free online resource library and mobile app. For tax debts under $10,000, it is normally unnecessary to use a tax relief company because someone can settle independently the problem. Many people can handle their own tax debts, but those with even a moderate burden should obtain support. If CommunityTax determines that it can provide value to a case, it will accept clients with tax debt as little as $7,500, which is among the lowest of all competitors. In addition, they provide a wealth of tools and services that are invaluable to taxpayers with modest tax obligations.
#5. Enterprise Consultants Group
Enterprise Consultants Group is a one-stop shop for the tax requirements of small businesses. From payroll taxes to tax audit counsel, we’re convinced that you’ll find the greatest business services here.
Most tax relief services aid individuals and firms, although they’re better at helping individuals. For Enterprise Consultants Group, this is the furthest thing from the truth. We looked into a number of different tax relief groups, and this one had the most comprehensive selection of business services. Business licenses, registered agent services, and other needs requiring an accountant or lawyer are just a few examples of the services geared toward small enterprises.
#6. Tax Defense Network
If you speak Spanish and are having trouble communicating with the Internal Revenue Service, the Tax Defense Network can help. Because of their success, we feel secure recommending this organization to Spanish speakers with tax debts.
If you don’t speak English as a first language, dealing with the IRS on your own can be much more daunting. Spanish speakers who are battling tax debt can get assistance from the Tax Defense Network. The organization provides a Spanish-speaking customer care line and employs tax experts that speak both English and Spanish.
#7. ALG Tax Solutions
To better equip consumers and forestall future tax debt, ALG Tax Solutions provides a comprehensive library of free educational resources. We value the company’s dedication to assisting each customer in determining the best course of action, including the possibility that this may involve a fee for tax relief services.
This solidifies ALG Tax Solutions’ position as the industry’s premier provider of comprehensive tax relief services. An educational focus is a strong indication that a tax relief service is looking out for your best interests. Tax relief providers who offer educational resources might help consumers avoid extra tax responsibilities. Exactly this is what the online resource library at ALG Tax Solutions does.
Cost of Tax Relief Services
Given that most customers require tax preparation for multiple years, the typical case ranges from $3.5k to $4.5k.
Tax preparation fees, especially if you need to file Forms 940 or 941 for a business entity such a partnership, LLC, C-Corp, or S-Corp, will increase the total cost. As a result, the costs may range from $5,000 to $7,000 for companies dealing with complicated scenarios.
Companies with a huge marketing budget may charge more for their products and services. Many well-known companies invest so heavily in marketing that they have to increase their prices to cover these costs.
Other Factors to Consider About the Cost of Tax Relief Services
There is no guarantee that the cost of tax relief services will fall within the range of $3,500–$4,500 that is reported by numerous businesses as the average cost of a case. Tax resolution firms offer a wide range of services, each with its own unique price tag. Services that need more time and effort to complete typically cost more. An Offer in Compromise, for instance, will often incur more costs than a standard payment arrangement.
The total amount of tax the customer owes is also taken into account when determining the final cost of the service. Most services become more involved and costly as their associated taxes rise. Taxpayers with a balance due to the IRS of more than $50,000, for instance, are typically required to provide additional paperwork and financial information. Someone with a smaller tax debt will pay closer to the low end of the pricing range, while someone with larger tax debt, say over $50,000, will pay more.
Do Tax Relief Services Really Work?
People always ask if tax relief services actually work because of scams and other unethical company practices. Tax relief services scams work on the vulnerable by promising them free relief from their tax burdens while really increasing their financial burdens through increased costs.
However, reputable firms will be forthright about whether or not you qualify for their services, will not guarantee any particular results, and will have clear pricing from the start. Furthermore, we discovered that the best tax relief services actively include their clients in the process by providing them with information and tools in the hopes of empowering them to really work on their tax issues and prevent them from arising again in the future.
In the end, it’s crucial to understand that free tax relief services really don’t do any work that you can’t accomplish on your own by communicating directly with the IRS. Tax relief firms can negotiate more favorably and deliver better results for their clients, thereby paying for themselves.
What Does Tax Relief Include?
In most cases, the procedure for tax relief starts with a no-cost consultation, during which a case manager will evaluate your existing tax burden and provide you with an estimate of the cost of the ongoing service. After you have indicated that you are willing to proceed, the case manager will initiate a comprehensive examination of your past tax filings in order to determine the most effective course of action. At last, they will engage in negotiation with the IRS in order to secure the most favorable possible outcome for you.
Are Tax Relief Companies Reliable?
The simple answer is that each business is different. While there are untrustworthy businesses out there, reliable tax relief agencies have helped countless individuals and families resolve their tax problems. Pay close attention to the level of honesty and openness displayed by potential tax relief providers when doing your research. Those businesses that make grand claims without investigating your situation thoroughly should be avoided.
Are Tax Relief Programs Worth it?
In spite of these programs’ ability to wipe off penalties and interest, you are still responsible for paying the original tax obligation. Be wary of any tax relief firm that guarantees it can get you out of paying interest and/or penalties. No matter who you hire to represent you in IRS Collections, you have few options.
Free Tax Relief Services
In addition to VITA, the Tax Counseling for the Elderly (TCE) program provides free tax relief services assistance, with an emphasis on pension and retirement-related issues that are specific to persons aged 60 and up.
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) are managed by the Internal Revenue Service (IRS), but VITA/TCE sites are run by IRS partners with the help of volunteers. Many of the IRS-approved tax counselors are retirees working for non-profits that receive funding from the agency.
If you need help filing your taxes, VITA/TCE is a great option because it’s free tax relief services and they’re reputable. To prepare tax returns for VITA/TCE clients, all volunteers must complete tax law training that is at least as rigorous as the requirements set out by the IRS. I emphasized the confidentiality of taxpayer data throughout the course. For tax returns produced at VITA/TCE sites, the IRS mandates a quality review check in addition to the volunteer’s certification of their familiarity with tax law. Every year, tens of thousands of dedicated VITA/TCE volunteers prepare millions of federal and state tax returns. In addition, they aid taxpayers in filing thousands of Facilitated Self-Assistance tax returns.
How Do I Get My IRS Debt Forgiven?
The IRS will negotiate a reduced settlement amount with you if you file an offer in compromise. If you find yourself in a position where paying your full tax bill would be too much of a financial strain, this may be a viable choice. When analyzing your situation, we take into account the following:
- Capacity for payment
- Income
- Expenses
- Equity Assets
If the sum you’re offering is the maximum we can reasonably hope to collect from you within a reasonable time frame, we’ll likely accept it as an offer in compromise. Think carefully about submitting a compromise offer until you’ve exhausted all other payment methods. It’s important to note that the Offer in Compromise program isn’t right for everyone. Always verify a tax preparer’s credentials before enlisting their services.
How Much Does a Tax Relief Specialist Services Cost?
Although the cost of tax relief services may be higher in some areas, tax resolution experts typically charge between $200 and $350.00 per hour. How many hours are needed for tax settlement services varies from case to case based on the intricacy of the tax problems being resolved.
Why am I Getting Calls from Tax Relief Services?
A phone contact from someone promising to lower or even eliminate your tax liability could be a fraud if the savings are too fantastic to be true. Swindlers are making phone calls to try to take advantage of people as tax season approaches. This voicemail was forwarded to News 8 by a viewer: “Hey, this John. Sorry if I didn’t see you.
How Do You Know if an IRS Letter is Real?
The top or bottom right corner of official IRS correspondence will feature a notification number (CP) or letter number (LTR). A fake letter is more likely to occur if there is no notification number or letter attached. The Internal Revenue Service can be reached at 800-829-1040.
Does a Tax Settlement Affect Your Credit?
Creating a payment plan with the IRS will not result in negative marks being placed on your credit report. The IRS cannot disclose any information about you without your consent. Creditors may be able to find out about a payment plan, but a Notice of Federal Tax Lien is not public information.
How Do I Qualify for Tax Relief?
Deductions, credits, and exclusions are just a few of the ways in which tax relief programs and initiatives help citizens lower their tax obligations. In addition, there are programs available to assist taxpayers who are behind in paying their taxes to resolve their tax problems and maybe avoid liens.
Changing the federal tax law is typically prompted by government policy aims. For instance, the United States Congress has enacted incentives for people to save for retirement via tax-advantaged savings accounts like Individual Retirement Accounts (IRAs) and 401(k)s due to widespread worries about the paucity of retirement savings in the country as a whole.
FAQs
What happens if you owe taxes and cant pay?
If a taxpayer is unable to pay their tax bill in full, the IRS will work with them to arrange an alternate method of payment. It’s possible to arrange a short-term payment plan.
Who qualifies for the IRS Fresh Start Program?
In order to participate in the program, taxpayers must be willing to pay their tax burden in agreed-upon installments over a predetermined period of time.
Can you negotiate with the IRS without a lawyer?
An OIC can be made without the assistance of a tax firm or other professional.
Related Articles
- WHAT IS AN INCOME Tax: Definition, Rate, and Types
- COMMERCIAL HEALTH INSURANCE: How it Works & Top Largest Commercial Health Insurance Companies
- MORTGAGE STIMULUS: Good News For Prospective Homeowners
Reference
