Beware of tax relief companies that make promises they can’t keep
No one wants to pay taxes, let alone owe them to the Internal Revenue Service. The obligation to pay taxes often even survives bankruptcy, which can make you search for a way to deal with them once and for all.
You may have seen advertisements for tax relief companies that claim to have helped “thousands of people” just like you. They claim they can stop tax garnishments, property seizures and levies while relieving you of the need to make monthly payments to the IRS. They also claim to be able to reduce the amount of taxes you owe. The problem is that many of these claims are false and take advantage of unsuspecting taxpayers. Don’t be one of them.
Don’t believe the hype
Tax relief companies often take hundreds, if not thousands, of your hard-earned dollars by making you the promises outlined above. In reality, what many of them do actually causes you more trouble in the long run. The main concerns with these companies include the following:
- When advocating on your behalf, they fail to provide the IRS with all of your asset information. If your eyebrows just raised, then you understand why this would cause you more harm than good.
- They make promises of reducing your tax debt.
- They don’t tell you just how lengthy the process may be.
If anyone makes you promises regarding a reduction of your tax debt, run, don’t walk away. Only the IRS or the courts can make those decisions.
Other options for dealing with tax debt
You may qualify for one of two of the following primary options from the IRS for dealing with your tax debt:
- You may qualify to permanently deal with your tax debt through an Offer in Compromise. The IRS agrees to accept a lower amount that you can pay in a limited number of installment payments. Ordinarily, this option only becomes available after other options fail to yield results.
- You could make monthly payments on the full amount of your tax debt through an installment agreement.
Many people wonder whether filing for bankruptcy would eliminate tax debt. The simple answer is no, but under certain circumstances, it may be possible. Meeting the requirements for the discharge of tax debt is difficult, but not always impossible.
Explore your options
Knowing your rights and understanding your legal options for dealing with your tax debt may require some help. You may benefit from scheduling a consultation with a tax attorney who can answer your questions, address your concerns and assist you in your dealings with the IRS and/or the bankruptcy court depending on your situation.