Tax Relief Do’s and Don'ts

We imagine you are wondering how to make the decision on how to select a tax firm to solve your or your company’s tax problem.  This problem may be impacting your life in a profound way ... avoiding reading those IRS/State letters, having arguments with loved ones about taxes, thinking about tax problems at night when you should be sleeping, and in general ... creating a cloud of worry and unhappiness.  We urge you to start the process and help yourself, but don’t procrastinate.

You may have seen the slick TV ads promising tax reduction miracles (think about it, those ads run right next to the miracle cream ads that grow hair instantly ... hmmmm) you may even have received calls from slick salespeople pressuring you to hire them.  Do you think outrageous promises and claims sound too good to be true?  So did our former and current clients.

The following is some advice that our current and former clients helped write that will prevent you from hiring the unqualified or unreliable firm.  We hope you hire us, but if you don’t ... at least hire a firm that doesn’t do any of the following.

Here is what to watch out for when you are seeking help with a tax problem and what to do about it ...  

  1. Don’t hire a firm that demands full payment in advance or even half now and the balance in 30 days without the completion of the services. You will most likely never see your money again. Don’t ever give these yoyos your credit card or checking account info over the phone before you get a written agreement to review.

    Do expect to pay a reasonable retainer and pay as work is completed for you or in reasonable monthly payments.  Only provide your information after you have time to review the agreement.

  2. Don’t hire a firm that “guarantees” the outcome of Offer-In-Compromises. These fast-and-loose with the facts companies ask some basic questions about a callers finances and by some miracle all callers qualify for an Offer-In-Compromise. The IRS takes a dim view on these guarantees or implied outcome promises and the IRS has even published warnings regarding this practice.

    Do expect have your income; assets, and expenses reviewed in writing before any final decision on your options is made.  Go to this link to read the IRS warning.  http://www.irstaxreliefassociates.com/news20041025.php

  3. Don’t take the word of the person the phone about how great their firm is in getting an Offer-In-Compromise approved.

    Do ask for copies of recent IRS acceptance letters (the Client info and Social Security number can be blanked out and still show the result), if they don’t show you a letter, they probably don’t have any.  

      
  4. Don’t hire a firm that tells every potential client that they qualify for an Offer In Compromise.  How can you tell?  Have fun with them, have a friend call them back and give them twice the income with half the expenses, bet they still say they qualify.  These flaky firms are getting a bit smarter, now they are not calling it an Offer-In-Compromise anymore, but a “tax solution” so they charge ridiculous amounts for Installment Agreements. 

    Do hire a firm that explains your options and the fees associated for each option. Our firm finds that about only 2-4 out of 10 people who call should consider filing an Offer-In-Compromise.


  5. Do not fall for scare tactics about losing your car, house, going to jail, etc from these boiler room firms.  The IRS and state tax authorities are interested in collecting money and resolving the case, not becoming the world’s largest car dealer. 

    Do get an explanation of what the IRS and state can do to collect from you and how a reliable firm can protect you.

  6. Don’t hire a firm that doesn’t stand by their Offer-In-Compromise submissions by supporting the client with appeals as part fee agreement.

    Do expect to the firm to stand by the Offer if the IRS errors or the firm errors and appeal the Offer.


  7. Don’t hire a firm that lumps all tax solutions into one fee structure.  These firms like to call their service “Tax Resolution or some other official sounding heading” and list all services under that heading.  Don’t pay the same for a service that takes less than 1 to 30-days to perform (Installment Agreement) as you would for one that takes four to eight months or more (Offer-In-Compromise)?  If the agreement is ambiguous and confusing, don’t sign it!

    Do ask good questions, and receive a reasonable plain-language explanation in writing on the fees and most important of all…get it in writing and read it carefully.


  8. Don’t fall for the Penalty and Interest Abatement sales tactic.  The outcome of this service can’t be guarantee either and there are some basic circumstances that client should have prior to filing for one.  These everything can be done by the “Great and Wonderful OZ” firms are trying to sell you a bill of goods. 

    Do get a reasonable explanation of the criteria that should exist for a potential abatement so you can make an informed decision of if this correct path for you.

  9. Watch out for traveling salesperson firms.  These firms claim to be nation wide and have offices located through out the United States.  What they have is traveling salespeople who are paid large commissions to sell/scare you and get you to pay huge fees in advance.  They meet clients in temporary offices.  The sell you and send your personal records to a central office.  Most likely you will never ever talk to the “trusted” smooth talking salesperson again.  

    Do speak to someone who will work on the case past the first phone call and the responsibility (not a salesperson or “tax specialist”) to make decisions on your case.  Ask is their name on the contact or Power of Attorney, how long have they worked there?

  10. Avoid firms that state they charge based upon the amount of taxes you owe.  The amount of tax debt is only one factor in determining the complexity of the case.  It is a way for these “gouging” firms to over charge potential clients.  

    Do expect to pay for the time, effort, and expertise of seasoned professional firm to solve your problems.  Overpaying is a rip-off and finding the lowest fee firm is a gamble    .
  11. Do watch out for Tax firms that have opened with in the last few months and are advertising heavily on the TV, Radio, and the Internet. Many of the these companies close their doors after a few months of getting clients to sign up. Don’t forget to check out any firm on the Better Business Bureau and online complaint sites. Ask good questions on how long they have been in business and what is the role of the person you are talking with.

Find a firm that doesn’t succumb to any of the above.  Clearly we would like to have you for a client, but we also recognize we are not a fit for all clients.  There are number reliable firms that can help you.  Ask good questions and you will find the help you deserve.

 

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IRS State Tax Relief Associates, Inc.
Serving all 50 States
866-417-4999