If you are a taxpayer who is experiencing issues with back taxes you are sure to be looking for some guidance. Between all the "too good to be true" advertisements and the scammers who are willing to take your money and provide nothing in return, it's no wonder that simply trying to decide who to trust with a huge tax problem is almost bigger than the problem itself. When you're shopping for someone to help with your tax issue here are a few tips to follow and some telltale signs that will help you decide who you can trust and who you should steer clear of.
First if someone promises you anything beware! Where the IRS is concerned nothing is done until it's done. Notice I didn't say if anyone gives you the probability of a certain outcome they are suspect...that is not true. Estimates for probability of success can be made on any case based on particular circumstances and past experience. Reasonable estimates for success are a part of everyday operations in the tax relief business for firms who are striving to engage people that need their service. You may be looking for a promise, and I hope your not, but if you're dealing with someone who is operating honestly you shouldn't get one and that's a good thing. You should steer clear of anyone who is willing to promise a certain outcome.
Second if someone claims you can settle for pennies on the dollar without a detailed look at your assets, liabilities, income and expenses beware! While the IRS does have a program that will allow some taxpayers to settle their debt for less than what they owe, it is a program of last resort and the vast majority of taxpayers will not qualify. In an effort to collect something from taxpayers who will clearly not be able to pay all of their tax liability the IRS will settle for less than the amount owed. However the requirements are very rigid and there are other options available, such as installment agreements, for those that can pay the liability out over time. You should steer clear of anyone who is promoting settlement for pennies on the dollar without a detailed look at your circumstance.
Third if someone is unwilling to be open regarding anything you inquire about beware! This can be said about any one in any business. The less forthcoming someone is about who they are, what they do, and how their industry and business operates the more suspicious the consumer should be. Now on the flip side of that, anyone who seems to respond very quickly to all inquiries in a way as to always tell you what you want to hear is suspect as well. So there are two extremes to be on the lookout for...someone who is either dodging questions or someone simply answering questions too quickly. Remember no two tax cases are the same and there should be some careful consideration of the circumstances and examination of the numbers. You may not always hear what you want to hear and some answers will be given in the form of an opinion not always in the form of certain fact or tax law. You should steer clear of those that dodge your questions or answer them too quickly without some thought or further clarification.
A taxpayer seeking tax resolution services should be prepared to pay something up front even if the outcome is uncertain, and please know that it is...some more uncertain than others. An initial phone conversation at no charge or a "free consultation" is typical to expect of someone trying to evaluate your situation and conclude whether they can be of service to you. However once it is established that they can it is not unusual to expect some form of payment before the actual work begins and filings to the IRS are made, after all that is how a tax resolution firm makes its living. So even though there are scammers waiting to take advantage of those in desperate situations like tax liens, wage garnishments or bank levies there are certain telltale signs, along with intuition and gut feeling, which will give you some level of confidence in who you are dealing with. Be cautious and shop around but don't let the fear of being scammed keep you from doing something because while the IRS may be patient, they won't wait indefinitely.
Trace George is a Certified Public Accountant and is the Executive Vice President of Action Tax Relief headquartered in Abilene, TX. Action Tax Relief provides services to individuals who are facing tax problems with the IRS. We help the taxpayer explore their options for tax relief including penalty abatements and offers in compromise. Action tax relief is not a CPA firm but we partner with consultants and CPAs in order to assist taxpayers through the process of dealing with the IRS to resolve their tax issues, including liens, levies and garnishments.
(c) Copyright Trace George. All Rights Reserved Worldwide
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