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BusinessWhat Are Tax Relief Services? And How Does It Work?

What Are Tax Relief Services? And How Does It Work?

Taxes are complicated, and understanding them is imperative to saving money and maintaining a good credit score. There is also a lot of paperwork and legalities to keep track of, so most people turn to a professional accountant. These experts know all applicable tax laws and rules, including those for your local area.

Tax relief services are professional help with tax issues

If you require professional help with tax issues, the best tax relief services can help you get the relief you need. A tax relief service’s fees vary depending on the service type and the debt you owe. Some charge an hourly rate, while others charge a flat rate based on the size of your tax debt. A tax relief company will analyze your paperwork and contact the IRS and state tax authorities on your behalf. Once they identify the right option for you, they will explain the steps and costs involved. Some tax relief companies may also be able to negotiate a reduced tax bill for you.

They can reduce debt by hundreds of thousands of dollars

The IRS offers various tax relief programs for people in debt. These programs are aimed at helping people pay back the money they owe and avoid penalties. However, not all of these programs are available to everyone. It is advisable to contact a tax professional before you hire a tax relief service. Most tax relief services charge a fixed hourly rate or a percentage of the debt owed. You should choose the one that is most affordable for you, depending on the complexity of your case and the amount of money you owe. Typically, tax relief services charge 10% to 15% of your tax debt. A $10,000 tax debt could cost anywhere from $1,000 to $1,500.

They can reduce penalties for unfiled tax returns

If you have an unfiled tax return, you may be eligible to receive penalties abatement. This is a program in which the IRS files a substitute for a return (SFR) when you fail to file your return on time. If you disagree with the IRS’s adjustments, consider filing a late return to replace the SFR. If you can prove you have reasonable cause to delay your return, you can get your penalties waived. In addition to individuals, the IRS is offering penalty relief to employers, banks, and businesses. 

They can help you qualify for Currently Not Collective status

If you are experiencing financial difficulties and can’t afford to pay the tax bill, you can work with a tax relief service to help you qualify for Currently Not Collective status. This status puts the IRS collection efforts on hold, allowing you to save money on your tax debt. However, tax relief services may charge you high fees, so make sure that the amount you save will outweigh the costs. The IRS doesn’t usually make this offer for a short period, so it’s essential to act now to avoid being placed on their collection list. However, this status won’t eliminate your debt – it simply pauses collection actions until your finances improve. While this may sound like a luxury, you must remember that the IRS can garnish your wages and your bank account if you don’t pay your taxes on time.

They are short-term or long-term

Tax relief services are available to reduce the amount of taxes that you have to pay. These include back taxes, which are those taxes that are delinquent from a previous year. Tax relief services offer payment plans to help you get these back taxes paid on time. This can be done in a lump sum or through installment agreements. The IRS may allow taxpayers to apply for an offer in compromise (OIC). This method is usually considered the cheapest option because the IRS will accept an offer of less than the total amount owed. However, it does come with extra costs and a lengthy process.

They come with a money-back guarantee

When looking for tax relief services, look for a company that offers a money-back guarantee. This guarantees that the company will fix the issue and return your money in full if you are unhappy with their services. These companies typically charge a one-time fee, but some charge monthly payments. A good company will be upfront about their fees, offer a money-back guarantee, and be available to answer questions. A money-back guarantee is also a good sign that a company is trustworthy. Another way to weed out scams is to read reviews about the company you’re considering. You can find customer reviews by checking various websites. However, rely on something other than individual reviews to indicate how a company performs. Look for trends in the number of negative reviews.

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