In the event that the IRS has summoned you, you may have stumbled across a number of TV commercials tax debt settlement firm that promise to settle your taxes. Uncollected taxes are way above 280 billion and growing each day, which is why the IRS is constantly striving to collect from individual taxpayers and businesses. To remedy an otherwise frightful ordeal, many agencies help slack taxpayers with their debts, including filing for IRS debt relief. Negotiating for IRS debt forgiveness is a lifesaver for many; however, reaching out to the right people is important to set realistic expectations and chart the best course of action. Continuing the discussion, the blog post gives detailed answers on the authenticity of tax debt settlement firms and what you can expect. Take a look.
What are Tax Settlement Firms?
Legal agencies in the US provide tax settlement services to assist taxpayers in minimizing the amount of debt they owe the IRS. Most such firms have a litany of tax experts, some ex-employees of the IRS who can bat on behalf of clients to resolve issues to do with unpaid taxes. Though most firms are legitimate and may indeed have former IRS employees employed, some misrepresent their makeup and competencies to hoodwink unsuspecting taxpayers with such bold claims, as the ability to get all your tax debt written off in a jiffy. You must avoid falling prey to such tall claims and be in a position to identify fraudsters. Falling into the hands of fraudsters lands you into more trouble that when you started out.
Must Read: Common IRS Issues We Can Help With
What Do Counterfeit Tax Settlement Firms Do?
Most tax debt settlement firms promise to send one of their IRS experts to the IRS offices to mediate, or persuade them to accept a relatively smaller amount as compared with what you owe the IRS. Some tax settlement firms even convince taxpayers that their experts can pacify the IRS into accepting pennies for dollars, allowing the taxpayer to walk scot-free. In reality, such results are hardly achievable and if it sounds too good to be true, it probably is. Getting complete tax debt relief from the IRS is virtually impossible, unless the taxpayer is either incapable of getting employment or has no assets that are valuable enough to cover the unpaid tax liabilities.
What Do Genuine Tax Settlement Firms Do?
Authentic tax debt settlement firms leverage a universally accepted and legally approved procedure known as “Offer-in-Compromise” to slash a significant amount of your tax debt. It is a special type of tax debt settlement, wherein a taxpayer can get substantial relief from their tax debt, in exchange of a much lower value. Though the process is undoubtedly lucrative, the taxpayer is required to furnish comprehensive details about their current assets, liabilities, and even projected income. The number of Offer-in-Compromise approvals is fairly low, given the fact that taxpayers need to prove that the stated amount is incorrect, chances of making a full payment are very low, or paying the taxes can result in financial turmoil for them. In addition, getting approval on an Offer-in-Compromise is a time-intensive process that may take several months, which is why taxpayers shouldn’t let fraudulent tax settlement firms take them on a wild goose chase.
How to tell a genuine tax debt settlement firm from a fake one?
Though there are no proven ways to spot a genuine tax settlement firm from a counterfeit one, you can always look for specific red flags. If a firm claims to have the ability to get your tax debt waived completely or significantly, overnight, chances are it’s a scam. Any representative of a tax debt settlement firm that makes such bold claims, without getting insights about your financial background is more likely to be a scammer. Genuine and credible tax settlement firms first gather the necessary financial data, before providing a realistic assessment of what they can and cannot do for tax relief. Moreover, authentic tax settlement firms backup every claim they make and charge a fixed, reasonable fee for their services. Fake tax debt settlement firms, on the other hand, make unrealistic claims and have vague pricing structures. More often than not, they charge non-refundable upfront fees, and try to mint more money once the taxpayer is deeply involved in their ‘tax debt settlement process’.
Delinquent taxpayers often make every effort to get IRS debt relief, as the IRS has the legal right to seize assets and deploy extreme debt collection measures. Most taxpayers find the IRS to be the most intimidating among all creditors. Riding on this fear, many fraudulent firms defraud unsuspecting taxpayers looking to amicably resolve their outstanding tax debts with the IRS. It is therefore, advisable to always stay alert when seeking professional help in settling your tax debts. You need experienced and reputable professionals to give you proven results. If you are facing tax debt issues and wish to seek some reprieve, The Law Offices of Nick Nemeth is here to help. To learn more about tax debt settlement pros and cons or to get a no-obligation free consultation, fill out our contact form and we will get back to you right away. You can also call us at 972-627-4580 to schedule your free consultation with Attorney Nick Nemeth.