If you find that you owe the IRS money, this can be an incredibly stressful and aggravating situation. You have many options for how to handle the issue, including looking for tax settlement. While a tax settlement can be a way out of your predicament, there are some things you should definitely NOT do.
The Tax Settlement Industry and What NOT to Do
When it comes to tax settlement and relief, you want to get through the process as quickly and painlessly as possible. This might lead you to fall for companies making promises that they can’t actually fulfill. They may claim that they are able to reduce your payments to the IRS or get out of paying your entire balance. While these can sometimes happen, you have to work with the right people to get these options in place. To make sure you are getting the help you need, check out the tips below.
Don’t Fall for Lofty Promises
A lot of companies in the tax settlement industry will make you promises, including the promise that they can settle your taxes for less than what you owe. If they say this and then don’t conduct a full financial background check on you, they are scamming you.
It is possible that the IRS will settle for less than what you owe. It’s called offer in compromise. However, to qualify for this option, you have to show that you are experiencing financial hardship. The IRS will then examine your assets, income, debts, and your ability to pay. They will then decide how long it will take for you to pay your balance. If the deadline is unrealistic, they will grant you an offer in compromise.
If the tax settlement company you’re working with is legitimate, they will be able to look at your history and current financial situation and let you know if you’ll qualify for an offer in compromise. The IRS rejects the vast majority of these applications, so having a company that knows this and knows your chances and lets you know this information is working in your best interest.
Don’t Trust Outrageous Claims
To gain your business, many tax settlement companies will make themselves look really good. They may say that they have never had a tax settlement get denied. If they make this claim, you need to be very cautious about how you proceed. This may sound amazing, but it’s probably not true.
The IRS is challenging to work with, and they want the money that you owe them. While they may be willing to work with you to develop a repayment plan or perhaps even lower your payment, not everyone qualifies for these services. Thus, if a company claims that they haven’t had a settlement denied, they have likely had only a few clients or they aren’t being truthful.
Don’t Believe Experience Without Proof
It happens often in the tax settlement industry that a company will have either tax attorneys or CPAs or possibly even both working for them. They say this because it gives them instant credibility and makes them seem like they know what they’re doing. It’s possible that they do have these people on the payroll, but the chances of them working on your case is slim. Your information will probably be given to a less qualified person who doesn’t cost as much to employ.
What to Do for Tax Settlement
If you find that you owe the IRS more than you can pay, then getting help is in your best interest, and that should come from a tax professional. Call Geaux Tax Resolution today. We will be honest about your chances of qualifying for tax settlement and help you through the process so you won’t be overly stressed or get scammed.