If you are inundated with unrelenting phone calls and marketing letters from tax resolution companies, sales firms promising to settle your tax debt for “pennies on the dollars,” BEWARE!
Here are a few things you should know.
Over 90% of you do NOT need to hire any tax resolution firm, tax attorney or CPA. In fact, your case is a simple collection matter which can be resolved by a formula which dictates the resolution options available to you. These resolution options include an Offer in Compromise, Installment Agreement or Hardship Status (Currently Non-Collectible Status).
Whether you navigate the IRS website yourself or spend a small amount seeking simple guidance with Wiztax, you DO NOT need to retain a resolution firm or law firm. Despite what the resolution firms tell you, your matter most likely falls on the very low end of the complexity scale.
Remember, despite what you believe, your tax matter is NOT unique.
DON’T LET YOUR EMOTIONS TAKE HOLD OVER YOU.
Some tax practitioners prey on your lack of knowledge and inexperience with the IRS. DO NOT be fooled.
DO NOT BE TRICKED INTO PAYING HIGH FEES.
Whether you owe $10,000 or $100,000, you matter is handled the same way. Many tax resolution firms will want to charge you based on the amount you owe.
BEWARE OF COMMISSIONED SALESPEOPLE.
Oftentimes the person soliciting your business isn’t familiar with tax resolution or has ever handled a tax resolution matter. That is to say, they are simply a commissioned salesperson trying to obtain a large fee from you.
INITIAL CONSULTATION.
Some resolution companies charge an initial fee for an “analysis” of your case. Then they will quote you a fee to handle your case. This is simply a ploy to get you “invested” in the process so they can charge you a sizable fee. Often thousands of dollars. Remember, just a few simple questions will tell someone all that is needed to provide you with your resolution options. The “analysis” of your case should typically take a few minutes.
So when should you hire a tax attorney or CPA?
If you have an on going business and have a pyramiding payroll tax problem, or you are disputing the amount you owe to the IRS (if you have been in an audit or currently involved in one) it may be a good idea to consult a CPA or tax attorney. In some instances hiring a tax attorney is important (we know, our co-founder is a 20+ year tax attorney) – but make sure you don’t unnecessarily spend thousands of dollars if you don’t have to.
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