If you’re in tax debt, it can be extremely difficult to know what is true and who to trust.
The tax relief industry is surrounded by misinformation that can waste your time, effort, and money. It seems everyone has a different opinion about resolving tax issues with the IRS.
Here are the three biggest sources of misinformation you need to watch out for.
1. Big Tax Relief Companies
Shady tax relief companies claim they can reduce your tax debt to a small fraction of what you owe. But, they charge high upfront fees and rarely produce the promised results. It’s true – any company that promises to achieve a specific outcome before assessing your complete financial situation is making false promises.
2. The IRS
The IRS expects you to pay everything as soon as possible, or you will face more penalties, interest, and eventually – aggressive collections actions.
Indeed, the IRS provides tax forgiveness programs that reduce the amount you owe. However, your IRS Agent won’t inform you that these programs exist – even if they know you can qualify.
3. News Outlets
News outlets parrot the IRS warnings, cautioning you to beware of ANY company that promises to reduce your tax debt.
But this blanket statement is hardly true. The IRS offers real tax relief programs like Offer in Compromise and Penalty Abatement that can reduce your tax debt – IF you meet stringent eligibility rules. Trusted tax relief companies enroll their clients in these programs every day.
With falsehoods on all sides of the industry, the truth lies somewhere in between.
Tax Relief Scams Exist – So Do Legitimate Tax Pros
Tax relief scams hide in plain sight. But most tax relief companies are NOT scammers.
Trustworthy tax consultants will educate you about real IRS resolution programs, explain the eligibility requirements, and inform you that not everyone qualifies. They will ask you questions to screen your eligibility and make a realistic plan that includes best-case and worst-case scenarios.
Trusted tax relief professionals can help bring you back into IRS compliance – even if you have years of unfiled returns.
An experienced Enrolled Agent or Tax Attorney will fight for you, using their expertise to negotiate with your IRS Agent and reach a more favorable outcome for your budget.
But how do you find a trusted tax relief professional?
The taxpayer advocates at Fresh Start Information can match you with a verified tax expert who specializes in resolving cases like yours.
We only partner with the most trusted Enrolled Agents, CPAs, and Tax Attorneys who have a presence in their communities.
Complete our brief survey to get matched with a verified tax relief professional.