tax advice

What Does A Tax Relief Company Do For You

Student_DebtEvery business and wage earner is required to file a tax return and a good tax payer will have no problem with the IRS. However, there are certain unexpected circumstances in our lives which make us renege in our obligation of paying taxes to a point that we become buried in the problem of tax debt, and find it hard to further fulfill the payment of our tax obligation. In cases like this, we ask ourselves how we can solve our tax debt problem. Whichever way we go, the IRS will be asking us to pay our back taxes and the only options we have is either to face more penalties or avail of the hardship programs of the IRS. However, there are companies who claim that they can help us diminish our tax debt obligation or even erase our debt. They call themselves tax relief companies because they are primarily designed for the purpose of mitigating our back taxes burden. Are these companies really reliable and can they really help us lessen our back taxes burden? These are just some of the questions which we usually ask about these tax relief companies.

Tax Relief Companies

We will definitely find a number of tax relief companies as we scour the internet looking for some solace and relief from our tax burdens. If we call the 1-800 numbers of these tax relief companies, they would immediately answer you and inform you about their expertise and their capability of helping you. Some of these tax relief companies are really good and they have the know-how on the IRS hardship programs and how you can take advantage of these programs; while some of these companies are out to scam you. Good companies know the procedures on how to avail of these programs. First they would ask you to sign a form in which you can detail your tax debt problem. Based on these form, they will inform you of the viable options you can take and their capability and the limitations. Moreover, you will be oriented on what to do and what to prepare. They would tell you too of their asking fee and about the upfront payment they would charge you. They have tax professionals and tax relief attorneys who they say have the years and experience in handling tax relief process and they would say that they could really help you.

The IRS and Tax Debt

The IRS usually seizes assets from you if you fail to pay your taxes. One of the possible things they can do is called the wage garnishment. The IRS would usually provide you with notices through certified mail about your back taxes. However, if you fail to respond to these notices, the IRS readily send certified notice to your present employer prompting them to stop or withhold up to around 75% of your salary for the purpose of repaying your back taxes. This is one of the most humiliating ways of collection means because your financial problems will be brought open to your employer and maybe to your fellow workers. This may produce more stressful situations for you. Moreover, this problem may affect your credit rating later on.

Hardship Programs of IRS

Tax relief companies claim that they can help you avail of the different hardships programs of IRS so that you can avoid bank levies and wage garnishments. They will rule out for you the different options you can take to avoid these forceful moves of the IRS. Tax relief companies say that they exactly know the hardship programs of IRS. One of these programs is the Offer-In-Compromise (OIC). This is an effective way of helping people with back taxes clear themselves of their tax debt burden. This program was drafted by Congress to assist people with tax debt to eliminate their outstanding back taxes. It is a one-time opportunity for a tax payer to get some relief from exorbitant back taxes. A less than the full payment is afforded an indebted person, and the IRS has the power to allow a compromise agreement in which the taxpayer will pay less than what he/she owes.

Tax relief companies may provide you with legal assistance and legal representation which can help you work around the legal procedures of availing of these hardship programs. The IRS will usually conduct an audit of your financial conditions and you need a good representation to properly represent you. Tax relief experts of tax relief companies can provide you with the necessary legal representation in cases of these audits. If you have a business and you have business-payroll tax debt, your assets may be seized and eventually your business may be closed. Tax relief companies can provide you with legal representation to save your business.

Tax relief companies are either good or bad. Those which are good will have the good intention of lessening your tax debt burden. Those which are bad are out there to scam you. Tax relief companies have the primary function of orienting you about the hardship programs of the IRS. Likewise, they could provide you with the legal representation in your move to avail of the IRS hardship programs.

Rogario Finley is a freelance writer and tax relief expert. Rogario writes on a multitude of financial and legal topics. He enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation. For more information Visit http://www.supermoney.com/


How To Protect Yourself From Tax Relief Scams

TaxesWe must be very watchful when it comes to tax relief. Allow me to jog up your mind a little before I go any further because I know you are dealing with the burden of catching up on your back taxes. But what if you fail to pay tax? Your first reaction is to panic. Nevertheless, failure to pay tax is your own fault and it’s a necessary requirement by the law. But sometimes we can become victims of tax scams in various ways. There are some firms that steal from their clients, there are others that pose as service providers, others misrepresent potential outcomes and others have non refundable upfront payments without any guarantees. In this article we’ll discuss these tax relief scams and how to protect yourself.

Beware Tax Relief Scams

Scams work in different ways. You’ve seen the ads claiming in different ways. For instance, they proclaim that they are the country’s largest tax resolution firms or they are publicly traded companies and they ask you to settle your tax debt. Fortunately, some of these companies have been sued for consumer fraud and theft. But a lot of hyenas have been found preying on those who are weakened by the IRS threats. It is important to be armed against them by being informed about these tax relief scams and how to protect yourself in order to make the most of your tax relief options.

Phishing

Phishing is the major tax scam concept that involves the trial to acquire personal information such as usernames, passwords and other personal information. It functions by directing the users to fake websites. Their emails can appear official and confuse the user to enter personal information which is used for nefarious purposes. Weak users who are seeking to get tax information can unknowingly provide personal information that can give way to tax scammers.

While dealing with tax relief companies, remember that you will never be contacted to enter any personal information through emails, text messages or any kid of electronic communication. If you’ve experienced these actions, you can report to Internal Revenue Service (IRS) companies to prevent further victimization.

Money Owed Through Social Security

Other popular tax relief scams involves social security money, whereby scams appear in forms of banners and flyers poor communities, targeting those people who are desperate of money. You can easily be conned with false promises of social security credits to make you believe that you can get some sort of government money.

It is important to avoid all misrepresentation appearances. Keep in mind that many forms of false advertising and misinformation appearances are run by scam artists who prey on those who are easily led to believe things that are too good to be true. You can report any action concerning appearances to be more protected from this type of victimization.

Nominal Fees and Upfront Payments

Some companies charge nominal fees when carrying out any research. Others charge huge sums of money for unpredictable results, and these payments are not refunded even if no achievements are met. They provide bogus stories of payments and offer compromises that are too difficult to meet. Some specific companies have enrolled many clients into programs and collected their money without providing proper services, not even necessary paperwork to the IRS. In most cases they keep changing their names as they prey on people again and again, leading to more people with more debts. But it is important to make thorough research and avoid those companies that emphasizes on upfront payments and misrepresentations. They are the main tax relief scams in tax relief industry. But it is good to consider the firms that require payments after services are rendered.

You can sometimes be led to believe that you’ve met a marketing company. But you must be keener in your research especially if you find out that their services are sold to other service providers. Keep in mind that marketing companies have no control over the quality of their services and you can be never be served by these companies.

Lastly, it is important to think twice before opting for tax relief scams which can weaken you without knowing into bankruptcy. You should find companies with refund policies and those ones that can satisfy your tax debt. With Tax Relief Experts your debt can be resolved within 24; 48 months with no upfront fees. You can now be relieved against tax relief scams if you are worried about your tax situation.

A professional tax relief company must possess contacts within the IRS. Beware of tax relief scams in order to make the most of your tax relief options to avoid this tactics.

Devin Finley is a freelance writer and tax relief expert. Devin writes on a multitude of financial and legal topics. He enjoys collaborating and strategist with other professionals to ensure tax & debt clients receive competent and beneficial representation.


If Income Taxes Increase, Will Rich People Leave the USA?

If Income Taxes Increase, Will Rich People Leave the USA?

Ever since this country was founded, Americans have hated paying taxes. So it should come as no surprise then that many rich American citizens are considering leaving the country and renounce their citizenship to avoid paying those taxes.

The Abroad Tax Issue

The United States is one of the few countries world-wide to tax its citizens on income earned, even if they earned it out of the country. For example, you could work in France for an entire year and still owe income taxes in the U.S. based on how much you earned. This issue has been a leading cause of more and more Americans renouncing their citizenship.

In 2011, almost 1,800 Americans gave back their green cards and renounced U.S. citizenship. This was nearly eight times more than in 2008 and more than 2007, 2008 and 2009 combined according to IRS statistics.

Many Filing Abroad Issues

While the last several years have experienced an increase in the ease of filing taxes from more resources to increased software options, overseas taxpayers still have many issues they must contend with. A report released by the National Taxpayer Advocate’s Office, an arm of the IRS, said that heavy paperwork, few online filing options and language issues hamper these taxpayers.

Other issues that weigh on overseas taxpayers are two old requirements: Reporting foreign bank and financial accounts. This might not seem like much, but if you have joint accounts you need to list all assets in them. This means if you are married to a foreign national, you are required to list all of your joint assets to the IRS.

According to many tax lawyers, tax questions arising from listing bank account assets are a big reason that many U.S. citizens renounce their citizenship.

Abroad Taxpayers Recourse

There are currently about 6.3 million U.S. citizens living abroad who pay taxes on incomes earned overseas. When they have had enough of paying taxes to a country they don’t live in, they are left really with only one option: Renounce their U.S. citizenship.

This problem has caused many sleepless nights for U.S. citizens living abroad as they wrestle with tax problems and keeping their citizenship. Many of these overseas citizens have been faced with large fines and thousands in back taxes attributed to lack of information related to tax regulations.

While Congress has gotten involved and is researching ways to reduce red tape and undue burden on taxpayers, it isn’t likely to be a rapid change. For now, paying taxes overseas can become a gigantic headache requiring the services of CPAs and tax attorneys.

If you find yourself in this situation it is advised that you speak with an experienced tax attorney.

Author Jason Lancaster writes several different tax-related articles for Olson Tax Consulting, a Denver tax attorney who works with businesses and families to help resolve tax issues.


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