Every business and wage earner is required to file a tax return and a good taxpayer will have no problem with the IRS. However, certain unexpected circumstances in our lives 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, some companies 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 to mitigate 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 several 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 forms, 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 years and experience in handling the 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 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 sends certified notice to your present employer prompting them to stop or withhold up to around 75% of your salary to repay 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 the 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 the 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 taxpayer 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 who are good will have the good intention of lessening your tax debt burden. Those who 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.
Leave a Reply