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How do I reduce what I owe the IRS? Is there a way I can reduce my tax debt?
These are questions many Americans ask every year, to which they often never receive an answer.
Taxpayers having difficulty paying their tax debts might feel like they’re sinking in a deep, dark Internal Revenue Service hole.
The fantastic thing is that there’s a way out.
What Do Tax Relief Companies Do?
Tax relief businesses aim to assist taxpayers reduce their level of debt, provide guidance on audits, and help form payment arrangements with the IRS.
Such companies might even have the ability to stop potential penalties like wage garnishments.
These are simply a couple of the methods that accredited companies that specialize in tax relief might help.
While it is always best to pay off your entire tax debts on time before the IRS comes knocking, things don’t work as if in a perfect universe. But you can make it more positive.
In volatile financial times, payments fall through the cracks.
If you are a struggling citizen, it could be worth it to seek the help of professionals.
They are proficient at navigating the maze-like principles of the IRS.
But do tax relief companies really work?
Before diving into the potential benefits of a tax relief firm, know that there is peril around many corners when searching for tax relief.
Some companies attempt to scam taxpayers by asserting they can lessen or get rid of tax debts. Some require upfront payment that can be as much as thousands of dollars.
The Federal Trade Commission, which receives complaints from scammed taxpayers, says that in many situations, [the companies] don’t settle the tax debt, and oftentimes don’t even send the required paperwork to the IRS requesting involvement in the programs that were mentioned.
Making things worse, sometimes the companies will ask for much more money or refuse refunds to taxpayers who believed they were getting a fantastic deal.
Thousands of dollars are extorted from unsuspecting citizens every year from scams like this.
Yes, tax relief companies do work, be sure to follow the tip below.
When it comes to tax relief businesses, make sure to ask whether the firm has licensed tax lawyers on staff and if it has a money-back guarantee.
If a company says they can guarantee to resolve all of your tax issues run away.
How Tax Relief Companies Work
Tax relief businesses can be great for the countless American sinking under tax who don’t know how to approach the problem.
These businesses employ trained tax professionals who know the ins and outs of the tax code and can help walk you through various financial choices.
They can help you reduce your debt, reduce or waive penalties, or arrange for payments in installments.
Sometimes, obtaining a professional act on your behalf now may reduce the possibility of the IRS taking even harsher measures like seizing your property.
Charges for such services may run anywhere from $2,000 to $10,000.
The way they lower your debt is by convincing the IRS you definitely can’t pay your debt and don’t have assets like property worth seizing.
The IRS instituted the Fresh Start program for struggling taxpayers.
Those who qualify can form arrangements in which they pay debts back in installments (for debts up to $50,000) or settling for less than they owe (known as an offer in compromise) if the IRS thinks it could only accumulate that little sum from the debtor.
However, it’s up to the IRS to determine if it will accept a situation where you repay less than the full debt you owe.
No matter how proficient a tax attorney is, he can’t change your actual problems.
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