Imagine this scenario: The Internal Revenue Service has reached out to you to inform you that you owe a large amount of money to the government. You’ve also received a letter from a tax relief organization indicating that they are investigating your case. It’s tempting to contact them for assistance due to the convenient timing. However, not all relief organizations are legitimate.
There are many risks when you suddenly need to seek tax relief. Not all companies are trustworthy. Some companies are there to prey on taxpayers in your particular situation. Their goal? To make a profit while leaving you in the dust. This situation could leave you in far worse shape than you were before.
We’re continuing our series on the best tax relief options available to you. In this ongoing series, we explore hidden fees charged by tax resolution companies and tax relief companies, as well as other red flags to watch out for.
Hidden Fees Are Not a Good Sign
Tax relief companies are not the best or most reliable choice if you are looking for relief. They don’t usually have the experience to help IRS tax debt. They are also sales-oriented. Hidden fees are possible with sales-oriented “relief”.
You might find out that a company may charge your credit card or withdraw money from your account to pay “fees” not disclosed beforehand. Tax relief companies do not charge flat fees for every case. Clients are not provided with the current schedules of all their service fees. This is because they can overbill clients by assessing random fees and keeping them in the dark about them.
What Makes Tax Relief Companies Not Legitimate?
Many tax relief companies will promise to settle your debt, without ever evaluating your case or qualifying it. These companies also tend to charge large upfront fees.
If you’r chosen company tells you that the IRS tax problem can be solved quickly, it is another sign that they are not trustworthy. You should also be wary of companies that refuse to disclose who will be handling your case. Also, be aware of companies with poor Better Business Bureau ratings.
Another Reason Tax Relief Companies Are Not Legitimate
The Federal Trade Commission says that many tax relief companies promising to help taxpayers in difficult situations never actually pay off taxpayers’ debts. Many times, they don’t send proper paperwork to the IRS in many cases. These companies might refuse to refund dissatisfied clients, even though they did nothing to help them.
What Should You Do Instead?
Instead of seeking assistance from a relief firm, consult a tax lawyer with extensive experience dealing with IRS tax issues. A tax attorney will give you client-attorney privilege. This means that your communications regarding your case with the attorney will be kept confidential. You don’t need to worry about your attorney testifying against yourself in court.
A reputable attorney can give solid advice on the best ways to resolve your tax problems. Working with an attorney can help you avoid hidden fees that could end up costing you thousands of dollars.
There Are Legitimate Alternatives To Tax Relief Companies
It can be difficult to question the legitimacy of your options when you are facing tough IRS tax debt issues. Tax resolution firms are generally not reliable. A tax attorney can help you with legitimate tax debt and tax relief. Tenina Law can help you effectively address these issues while protecting your best interests.
Contact us today for more information about how we can help you reduce or eliminate tax debt, based on your individual situation.