If you are facing an IRS debt, you need to know the differences between Tax Relief and Settlement. Both are effective methods of reducing your debt. While tax relief is a process where you pay less than you owe, settlement is only an option if you cannot afford to pay your debt. The IRS has several ways of negotiating a settlement and offer in compromise is the most common. A taxpayer can make an offer in compromise if they have exhausted all other means of debt relief.
When hiring a tax relief firm, or a tax lawyer, it is important to evaluate their experience and qualifications. Make sure the company has a good reputation. Read about the different accreditations they have. This will indicate their reliability. In addition, ask about their fee structure and customer service. Some companies may not offer a free consultation, but this is an important step. It will help you determine whether you are a good candidate for the tax relief program.
Before hiring a tax relief company, you should read the fine print. Some companies will guarantee lower taxes or claim to have insider knowledge that will help you reduce your taxes. It’s important to read the fine print of their contracts before signing. Be wary of companies that offer money-back guarantees. This is because these guarantees are usually nonexistent if you’re not happy with their services. If a tax relief firm tells you they’re going to do this, they’re likely to try to charge more money in the long run.
You can also hire a tax relief company to negotiate with the IRS on your behalf. The benefit of this approach is that you won’t need to pay a tax attorney. A reputable tax settlement firm will contact the IRS on your behalf and negotiate favorable terms for you. Most of the time, a settlement will be more favorable to you than if you’d done it on your own. This is one of the most effective ways to reduce your debt while avoiding tax denial.
If you’ve been turned down by the IRS in the past, an offer in compromise may be the best option for you. By submitting an offer to the IRS, you can settle your debt for less than you owe. This is not always an easy process, and you should only hire an experienced tax professional to handle this procedure. The IRS has published a consumer alert that warns of fraudulent companies offering to settle debt. Moreover, an offer in compromise is not a viable option if you owe more than $2,000 to five thousand dollars to the IRS, said a tax law attorney serving in Louisiana.
The IRS offers several options to help taxpayers who cannot pay their debt. The only option that is considered a settlement is the offer in compromise, which is an agreement between the IRS and taxpayer to reduce their tax liability. This method is usually used by people who have few assets and little to no income, and have little hope of future income. A taxpayer who is not able to pay their debt can opt for a Tax relief and settlement.