There has been a sharp increase in tax relief companies popping up across the country who promise major savings and relief from tax debt…but are they worth the money?
Owing money to the IRS is stressful enough, but when you then have to decide if it’s worth it to pay a tax relief company thousands of dollars upfront to resolve your tax debt, the stress can become unbearable.
Most tax relief companies will not give you an exact cost upfront for how much it would be to resolve your tax debt…something that puts many people on edge.
This is because legitimate tax relief companies will charge based on the amount of work is necessary to complete the case. They will not give you a base fee that promises complete tax relief.
In fact, a sure-fire way to spot a tax scam is if someone promises you tax relief from a single, upfront fee. Every tax relief company will need a certain amount of money to be put down upfront to begin work, but if you’re working with someone who promises that they will do the work after you pay them 100% of their total bill upfront…you may be running into trouble.
Overall, you can expect that working with a tax relief professional will cost between 20-30% of your total tax debt, but if you have a number of unfiled tax returns or other compliance issues with the IRS, you may be charged more for the additional work needed.
Generally, many tax relief companies require that you have a minimum tax debt amount to take you on as a client. This is simply because if you only have a few hundred dollars in tax debt, the service fees for the tax professionals to work on your case will quickly become more than your initial tax balance.
Three Easy Steps To Make Sure You Won’t Over Pay For Tax Relief:
- Only hire a professional if you owe more than $5,000 in tax debt and/or have unfiled tax returns that need to be completed.
- Do your research and only work with reputable companies.
- Don’t agree to one-and-done fees.
Need help finding a reputable tax relief team?
FreshStartInfo partners with a number of vetted and verified companies who have helped resolve millions in tax debt. Get connected today and begin your tax relief journey.