Summary:We take a look at the pros and cons of hiring a tax relief company in 2022.
But you know what?
We’re not here to tell you what you already know. You came here for solutions – and that’s what you’ll get.
If you’re wondering whether tax debt relief companies are legit, here’s some good news.
Do you know what else?
We’ve done the homework for you.
And we have the inside scoop on the good, the bad, and the awesome when it comes to hiring a professional
So, let’s dive into the pros and cons of working with a tax relief company.
You’re here because you already know about the power of the IRS, their power to garnish wages or file a tax lien on your property, and it’s reached the point where you need to act.
You’re in the perfect place!
By the end of this article, you’ll be able to make a great decision about your next step whether it will be attempt this on your own or choosing to hire an expert to help.
Top 5 Reasons to Hire a Tax Relief Company
If you owe back taxes, you can benefit from consulting with a tax relief company.
Think about it.
They do this every day.
Give yourself a break. 8% of all U.S. taxpayers are delinquent. You are not alone!
And they’ve dealt with just about every scenario imaginable.
Instead of letting yourself feel overwhelmed, consider these top reasons to leave it to the experts.
1. Free Consultations
A free consultation is a great way to get your questions answered if you’re on the fence about working with a tax relief company.
You should get to know the company before you fork over a handful of cash to hire them, right?
During your free consultation, you’ll hear about some of the tax relief options, so you know where you stand.
And you know what else?
The company will ask you about your situation and customize the solutions to fit your needs.
2. You Get Out of Talking to the IRS
The three scariest letters in the alphabet are IRS. Talking to the IRS as you sift through the options for tax relief is intimidating.
Plus, it can take a ton of time.
But there’s a simple solution.
Once you start an installment plan, you will have a harder time qualifying for a debt reduction request later. We recommend you speak to an expert to see if you qualify for tax relief first.
Hire a tax relief company, and they’ll do all the talking for you!
The company will negotiate on your behalf, so you don’t have to feel the stress or spend precious hours on the phone with the IRS.
3. Smoother Negotiations Can Mean a Better Deal
You might not know what to ask for when going over your options with the IRS.
If you don’t know the right questions to ask, how can you be sure you’re getting a good deal?
Offer in Compromise Mistakes:
Tax relief expert (and former IRS revenue officer) Jeffrey McNeal says when he processed offers, he saw tons of mistakes made on the forms, even when prepared by CPAs and enrolled agents!
Instead of hoping you come out ahead, leave it to the experts.
A professional tax relief company can smooth over negotiations to make sure you get the best terms available.
4. Access to More Resources
Do you know the ins and outs of the tax code?
But a tax professional does. Plus, they have years of experience and access to programs, incentives, tips, and tricks that you might not know about.
They’ll use their expertise to help you avoid unnecessary fees and penalties, tax levies, and wage garnishments.
Tax Relief Companies
Should you hire a tax relief company to help you settle your back taxes with the IRS?
- Free Consultation
- Tax Experts
- Better Results
- Additional Cost
- Length Of Dispute Process
5. Faster Results
When you know the system, you know the quickest route from point A to point B.
And do you know what?
A company that specializes in tax debt relief knows how to navigate the system. They could get faster results than if you were to do it on your own.
Examples of success:
I browsed through dozens of testimonials from tax relief companies to find these. Of course there were dozens and dozens I found for a higher starting balance.
Initial Amount Owed
Resulting Amount Owed
Tax Relief Company Used
Eric Owed $15,000
Miguel Owed $11,000
David Owed $15,000
Less than $1,000
Gary Owed $13,000
Benefits to Hiring a Tax Relief Company:
You might think the only benefits to using a tax relief company would be to help reduce a balance. But after reading hundreds of reviews of tax relief companies, we’ve discovered that tax relief companies help Americans in a variety of ways:
- provide guidance on audits
- help set up payment agreements with the IRS
- help get current on any unfilled tax returns
- some may be able to stop potential penalties such as wage garnishments
Most importantly, they pause the stress of dealing with the IRS – Typically any case submitted to the IRS takes months (or years) to review. While waiting for their response, the IRS typically suspends any collection activities, and will often life wage garnishments, as is the case with an Offer in Compromise submission.
Our #1 choice for tax debt relief is Optima Tax Relief. Click here to set up a free consultation.
What to Watch Out for with Tax Relief Companies
Tax debt relief companies are a great resource. Tapping into years of expertise is can be valuable to your situation.
But it isn’t all sunshine and rainbows.
Even when you work with a legit company, you should be on the lookout for a few things.
1. Getting Help Comes at a Cost
Hiring a tax debt relief company isn’t cheap.
You might end up paying between $2,000 to $5,000 for their help.
I know what you’re thinking.
That’s a lot of money!
Before you write off the idea of hiring an expert, compare the cost to the fees and penalties the IRS can charge you.
In the end, getting professional help for your back taxes could be worth the price.
2. Results Might Take A While
While it’s true that a tax relief company can get quicker results, some issues might take a while.
If you don’t owe a huge amount and qualify for a payment plan or other tax relief option, your situation could be resolved instantly.
On the other hand…
Some tax situations can take months or years to sort out.
Just keep one thing in mind.
It might be a long journey, but it could be longer if you do it on your own.
3. Some Companies aren’t Trustworthy
You see it on the news all the time.
IRS scams that cost thousands of people millions of dollars.
When you need tax relief, not every company is reputable. And some are downright corrupt.
But we’ve done the investigating for you.
And we partner with some of the best tax relief companies out there.
Our top three are:
Optima Tax Relief
Anthem Tax Services
- Community Tax Relief
Optima Tax Relief is our #1 recommended service, but all three companies have an A+ rating with the Better Business Bureau (BBB).
Does Hiring a Professional for Tax Debt Makes Sense?
If you owe less than $10,000, it makes sense to try to deal with your tax debt on your own. But you don’t have to.
What if you’re not sure what steps to take? Or the idea of talking to the IRS intimidates you?
There’s just one answer.
Hire a professional to manage your tax debt.
Working with a tax relief company makes sense. Not only do they negotiate with the IRS, but they can help to minimize your penalties and get you set up on the right repayment plan.