Tax Relief Do's and Don'ts-a few minutes of reading will save you headaches and your $.
We hope you hire our firm, but if don’t at least we can provide you some guidelines so you can find a good tax firm.
Here is what to watch out for when you are seeking help with a tax problem and how a reliable tax firm should treat you.
Do your due diligence and research and ask questions! Check up on any firm with Better Business Bureau; make sure they have been in business for at least FIVE years. Not at least Five years in business and no BBB track record, forget them.
Don’t hire Tax firms that started within the last few months and are advertising heavily on the TV, Radio, and the Internet.Most of these fly by night companies close their doors after a few months of getting clients.
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 payment information after you have time to review the agreement.
Do be cautions of firms that “guarantees or promises” the outcome of Offer-In-Compromises or make claims of instant reduction of your tax liability. These fast-and-loose with the facts companies ask some basic questions about your finances and by some miracle you qualify for an Offer-In-Compromise. The IRS and many Attorney Generals take 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.
Don’t hire a firm that tells every potential client that they qualify for an Offer In Compromise or they can get taxes reduced without providing a factual, logical explanation. How can you tell? Have fun with them, call them back and give them twice the income with half the expenses, they will still say you 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 can over-charge you 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 2-3 out of 10 people who call should consider filing an Offer-In-Compromise. Ask yourself why those other firms all tell all 10 they qualify.
Do be aware that firms using scare tactics about losing your car, house, going to jail, these firms are exaggerating the truth are trying to manipulate you into making bad decision. The IRS and state tax authorities are interested in collecting money and resolving the case, not becoming the world’s largest car dealer or Real Estate Company.
Do get an explanation from an honest, reliable tax company of what the IRS and state can do to collect from you and how a reliable firm can protect you.
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 phony 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 up to eight months or more (Offer-In-Compromise)? If the agreement is ambiguous and confusing, don’t sign it and don’t give them a dime!
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.
Don’t fall for the Penalty and Interest Abatement sales tactic. The outcome of this service can’t be guaranteed either and there are some basic mitigating 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.
Do watch out for traveling salesperson firms who claim to have offices in all 50 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. How long have they worked there?
Avoid firms that 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. This is how these firms 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.
Do find out if you need to hire a firm to begin with? If you have undisputed tax liability and it is under $10,000 it may make sense for you to attempt to resolve it first with the IRS or state. Many tax payers find that it isn’t too difficult or time consuming to set up simple installment agreements.
Don’t take the advice or recommendations of IRS or state collection agents without verifying that is in your best interest. Remember who they work and what their job is.
At no cost or obligation to you, receive a FREE and CONFIDENTIAL CONSULTATION by calling us at 206-633-6089 You can also fill out an email form by clicking here but we suggest you take the quickest path towards your solution by calling. Take advantage of the 1-on-1 level of support that only a phone call can offer.
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