Tax Settlement Services For Resolving Tax Debts
Individuals and businesses with outstanding tax balances can face substantial IRS collection penalties, which can result in the seizure of bank account levies and the seizure of personal property such as vehicles.
Tax relief companies claim they can help you reduce the taxes owed and work out a payment plan that fits your budget.
Challenging What The IRS Claims Is Owed
If the IRS claims you owe taxes, a tax relief specialist might be able to help you reduce the amount of tax you will need to pay.
If you can’t pay what is determined to be owed taxes, your tax advisor can negotiate a payment plan after they reduce the amount owed through what is called an offer in compromise.
Reduce Tax And Third-Party Lender Pays Off Amount Owed
Once this amount is negotiated and determined, tax settlement services might coordinate with a lender who can assist you in paying off part or even your entire balance owed to the IRS, thereby creating substantially smaller and more manageable payments.
IRS Hardship Program
Suppose you are going through severe financial hardship. In that case, a tax service might be able to advise you if your current economic conditions might qualify for the IRS Hardship program.
Knowing that the degree of financial hardship must be severe and requires extraordinary circumstances to qualify for the program. A tax settlement service may be able to advise you if you qualify and, if not, explain your options.
Like any other financial service, you, the consumer, must exercise due diligence in selecting a reputable tax relief service. Unfortunately, this industry has had their share of scams. In this regard, be sure to check the company’s reputation and legal status with the Better Business Bureau and the Department of Justice before doing business with them.
According to Investopedia, one of the best tax relief companies for 2021 included the Tax Defense Network.
