How to Choose the Best Tax Relief Company

Navigating the complexities of the U.S. tax system can be daunting, especially if you owe money to the IRS or state authorities. Failure to resolve these issues can lead to severe penalties, including seizing your personal or business assets.

Enlisting the aid of a tax relief company can be beneficial in these situations, alleviating your financial burden and restoring peace of mind.

Why You Might Need a Tax Relief Company

Several scenarios warrant onboarding the services of a licensed tax relief company. Here are the most common ones.

Overwhelming Tax Debt

The stress of being behind on your tax obligations can often be crippling. Relief entities specialize in negotiating favorable settlements to ease the pressure.

For example, they can utilize the IRS’ Offer in Compromise program to allow you to settle your tax debt for less than the full amount owed. Depending on the circumstances, you may even be able to pay a lump sum or in installments, providing further financial respite.

Similarly, relief businesses can work with tax authorities to delay the collection process until your financial condition improves. In other cases, they might arrange for penalty abatement to reduce the overall amount owed.

Complex Tax Issues

Tax laws are intricate and constantly changing, so the filing processes you followed a few years ago might be inapplicable today. A tax relief company can be a powerful ally when facing complicated issues like unfiled tax returns, audit requests, and fraud or evasion allegations.

Its expert guidance and representation can simplify procedures and lead to more favorable outcomes when dealing with tax agencies. For instance, it can represent you and defend your tax positions if you’re selected for an IRS audit.

Wage Garnishments and Liens

The IRS is probably the most difficult creditor you’ll encounter. It can mandate your employer to withhold your earnings to pay off tax debts without a court order. Authorities can also place a lien on your real estate, personal belongings and financial assets, preventing you from accessing or using them. You can claim an exemption based on your dependents, but the process is often complicated.

Tax relief firms specialize in addressing these issues, providing expert guidance and negotiation strategies to help you regain control of your finances. They can initiate proceedings to halt the garnishment process while exploring alternative resolutions. In certain situations, they can dispute the deductible amount or request an appeals conference to pursue further alleviation.

Innocent Spouse Relief 

Picture this — you file your taxes jointly with your spouse, only to discover later that they hid significant income or committed tax fraud. You’re now facing a hefty tax bill you never knew about, and the IRS holds you responsible.

Exploring the Innocent Spouse Relief provision through an experienced tax resolution business can be your lifeline. Its expertise in similar cases can significantly increase your chances of a successful outcome, relieving you of unfair tax liability and providing peace of mind.

Tax Planning and Future Compliance

Beyond resolving current issues, many tax relief companies develop tailored strategies to minimize liabilities and provide guidance on returns preparation. Some also offer professional advice on the fiscal aspects of retirement and investment planning.

6 Qualities to Look for in a Tax Relief Company

When searching for the ideal tax relief company, look for these six essential qualities to ensure you find a firm that delivers the right results.

1. Proven Track Record

You want a partner that has successfully helped clients like you resolve their tax debts. Ask about their success rate in resolving tax issues similar to yours. Choose an institution that can share real-life success stories or testimonials. For instance, one that helped a client reduce a colossal tax bill through a successful Offer in Compromise demonstrates its capability.

2. Professional Leadership 

Make sure tax specialists with relevant qualifications lead the enterprise, such as certified public accountant and Enrolled Agent designations. These experts understand the intricacies of IRS procedures and are better equipped to negotiate a favorable settlement for your case. Membership in professional organizations such as the National Association of Tax Professionals or the American Society of Tax Problem Solvers is a plus.

3. Transparent Fees

Tax relief services can cost anywhere from a few hundred to thousands of dollars, depending on how much debt you have and the complexity of your situation. The important thing is the company is upfront about its fee and what it covers. It should also specify whether you’ll pay a flat fee or hourly rate and what to expect at each process stage. The last thing you want when navigating tax debt complications is to deal with unexpected costs.

4. Personalized Solutions

Every tax situation is unique, and your relief strategy should reflect that. Go for a firm offering tailored solutions rather than cookie-cutter approaches.

5. Strong Communication Skills

Clear, consistent communication ensures you always know where your case stands. You want a tax relief entity that keeps you informed throughout the process and is available to answer your questions. If it takes days to respond to your inquiries, it is probably not the right fit.

6. Free Consultation

Reputable tax relief companies typically offer a free initial consultation, allowing you to discuss your situation and assess whether their approach aligns with your needs. During the meeting, pay attention to how they evaluate your case and the solutions they propose. If they focus more on their fees or other nonessentials, that is a red flag. 

Resolve Tax Issues With Expert Help

Dealing with the IRS or state tax authorities on your own can often be tumultuous, so hire the right tax resolution company to help you regain control of your financial situation and find the relief you need. The key is to get all the necessary information before deciding on a service provider and explore your options carefully.

At Polston Tax, we specialize in resolving complex tax issues, including wage garnishments, audits, penalty abatements and more. With our team of licensed tax attorneys, CPAs and accountants, we are a premier tax resolution firm that has been providing comprehensive IRS tax help and accounting services since 2001. We offer free consultations and cater to highly regulated industries like construction, cannabis and transportation, helping clients save over $250 million in tax liabilities.