Settlement Firm’s Success Rate
As stated previously, the IRS rejects the majority of offers in compromise it receives each year. The number of clients who get satisfaction from tax settlement companies is negligible and most are virtually destitute financially. The vast majority of potential settlement clients need to work out payment plans with the IRS that allow them to clear out their tax balances over time while keeping their assetsand dignity.
For more information on whether a payment plan is right for you, see these questions on IRS website.
How Many Reviews Does The Company Have
While a happy customer singing the praise of a company is typically a good sign, excellent service shouldn’t be a one-time thing. How can you discover if a tax relief company consistently delivers quality service and recognizable results for its customers? Look at the number of positive reviews the company has on reputable review sites.
Customer Lobby is a third-party rating organization with a reputation for being impartial, so it’s a perfect place to start your count. Ideally, a tax relief firm should have tallied more than 700 five-star reviews with the site.3
Best Quick Relief: Anthem Tax Services
Anthem Tax Services
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Helps customers with as little as $7,500 in tax debt
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Some cases settled as quickly as one week
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Slightly lower past customer ratings
Unlike TDN, Community Tax, and Optima, Anthem Tax Services will help taxpayers who owe as little as $7,500 in IRS tax debt. Prices are not available on the website.
Located in Woodland Hills, California, Anthem Tax Services earned an average of 3.9 stars based on 151 reviews on Google. It currently has a B+ rating on the Better Business Bureau website, with an average 3.9-star rating based on 77 reviews. It has been in business since 2010 but was only accredited in 2017.
Like the other companies on our list, Anthem Tax Services offers tax debt relief, tax filing, and back taxes, as well as tax preparation. One of the firm’s specialties is helping truck drivers with tax debt relief and accounting services.
You can visit Anthem Tax Services’s website or call 1-888-548-0478 to get assistance with offers-in-compromise, CNC status, innocent spouse relief, and installment agreements. The company can help with state or federal taxes.
Anthem Tax Services earned the designation of Best for Fast Results because it may be able to settle your tax case in as little as one week.
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How Does Tax Relief Work
Do you have a tax bill from the IRS this year? You’re not alone. A government study estimates that as many as 21% of tax filers may not have had enough taxes withheld in 2018.
But what happens if you owe Uncle Sam and you don’t have enough money to pay your bill? Thankfully, if you find yourself in this unpleasant situation, there’s no need to panic. The IRS has several tax relief options available that could help you.
Tax relief can allow you to break down your debt into payments or reduce the amount of tax you pay to the government. No, tax relief won’t wipe out your tax billand it could cost you more in the long runbut it might make paying what you owe to the federal government a lot more manageable.
How Can I Get Relief On My Back Taxes
Offers in compromise. You might be able to find tax relief through whats called an offer in compromise.. This lets you settle your back taxes with the IRS for less than you owe. According to the IRS, it may be an option if you absolutely cant pay your tax debt or if doing so creates a financial hardship.
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What Can A Tax Attorney Do For You
A tax attorney has the required knowledge and skills to handle complicated tax problems such as back taxes, IRS audits, liens, cases of non-compliance, and so on. Since a tax attorney is a lawyer, he or she can represent a taxpayer before the IRS and also in the tax court.
A tax attorney may have specialization in a particular field of taxation. If you need specialized help in a specific taxation field, you may inquire about a tax attorney that provides such services.
A tax attorney is qualified to conduct negotiations with the IRS on your behalf in back taxes cases and represent you before the IRS in in-person audits. When IRS audits go deep, it is best to hire a tax attorney or a tax relief company because, without proper guidance and help, things can easily get complicated.
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Though DIY saves money, if the case is complicated or you are unaware of IRS rules, even one mistake can lead to loss of money and worsening of the problem. So, depending upon the issue at hand, consider if you need help.
Tax Relief Services: What To Expect With A Tax Relief Company
If you have taxes owed or a serious tax problem, tax relief services can be essential. There are fees for these services, but in most cases, the benefits outweigh the costs. Tax relief services can help you eliminate penalties, reduce your tax bill, and/or get the IRS/State Agencies off your back in regards to enforced collection actions. Tax professionals can also stop wage garnishments and prevent asset seizure.
The right option often depends on your financial situation or the companys financial situation, but heres an overview of the process.
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Tax Settlement Firm Price Tag
The majority of tax settlement companies charge their clients an initial fee that can easily run anywhere between $3,000 to $6,000, depending on the size of the tax bill and proposed settlement. In most cases, this fee is completely nonrefundable. This fee quite often mysteriously mirrors the amount of free cash the client has available. This is generally the amount of cash the company says it will save the client in tax payments.
Clients have also complained to the Better Business Bureau and the Federal Trade Commission that some of these firms have not produced any of the promised results and, in fact, the organization was a scam. Many firms also materially misrepresent their fees to clients, perhaps charging them initially with a lower fee before coming back for more once they are deeply involved in the process.
Irs Back Tax Assistance Companies Reviews
There are many IRS back tax assistance companies available, making it difficult to determine which options are the safest, most reliable, and most effective. This is where back tax assistance company reviews can help. Reading reviews of back tax assistance companies from other customers will give you an idea of how the company works, whether its reliable, and what kinds of outcomes others have received.
There are many places you can go to find back tax assistance company reviews such as Yelp, the Better Business Bureau, and Solvable. Keep in mind that dissatisfied customers are usually more likely to leave a review than those who are content. However, you can often see the companys response to negative reviews and assess how they handled the situation. This is particularly true with the Better Business Bureau, where you can see whether complaints have been satisfactorily resolved.
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Also Check: What Does Agi Mean In Taxes
Anthem Tax Services: Highly Rated Tax Resolution Specialists
Anthem Tax Services is one of the most trustworthy tax relief companies in the industry. Acquiring large debt can feel overwhelming, stressful, and impossible to manage. If you’re feeling consumed by extensive tax debt, Anthem Tax Services can help.
Anthem Tax Services offers assistance with a wide range of tax relief programs, such as “currently not collectible” status, installment agreement services, IRS Fresh Start forgiveness, and more. The company is an excellent choice for Americans who owe tens of thousands of dollars in state and federal tax debt. To qualify for its services, you need to have a minimum debt of $7,500.
One of our favorite features of this company is its generous money-back guarantee. Unlike other tax relief companies that offer a two-week or one-month guarantee, Anthem’s 100% money-back guarantee has no time limit. If the IRS does not reduce your monthly payments after you hire Anthem Tax Services, you can receive a full refund.
Anthem also delivers faster results than other companies in the industry. The company advertises that it can settle your case in as little as a week, and it can resolve most cases in less than four months. You won’t have to wait around for months with no communication about your tax statusAnthem keeps users up to date and works efficiently to resolve their debt.
Overall, Anthem Tax Services is an excellent choice for anyone facing a mountain of tax debt and looking for a reputable, trustworthy company.
Stopping Tax Liens And Levies
Most taxpayers dont typically understand the difference between an IRS lien and levy which in and of itself is a great reason to speak with a licensed tax relief specialist. In order to get either a tax lien or levy stopped or prevented, a close look at the facts and circumstances of your specific IRS Collection case should be given and compared to the options that the IRS Manual and Tax Code provide to taxpayers.
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Tax Debt Relief Companies Are They Worth It
Tax Debt Relief Companies. Are they worth it?
Ive just received a second letter from the IRS saying I owe taxes on a tax return from a few years ago. My first letter came about a month ago. Honestly, I cant afford to pay it and Im barely making my credit card payments. My brother in law told me that there are tax debt relief companies that can help me get into a settlment plan, but I recieved a booklet from the IRS that lays it out pretty well how I can do this. Is it worth it to use a Tax Debt Relief Company if the IRS tells me how to do this myself?
Answer : I recommend that you try this web page where you can compare from different companies: .
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Ive just received a second letter from the IRS saying I owe taxes on a tax return from a few years ago. My first letter came about a month ago. Honestly, I cant afford to pay it and Im barely making my credit card payments. My brother in law told me that there are tax debt relief companies that can help me get into a settlment plan, but I recieved a booklet from the IRS that lays it out pretty well how I can do this. Is it worth it to use a Tax Debt Relief Company if the IRS tells me how to do this myself?
Best Overall: Tax Defense Network
Tax Defense Network
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Highly reviewed business with a 14+ year history
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Flat-rate pricing so you know what youll pay upfront
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It also offers full tax preparation services and audit defense
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Only works with customers who owe at least $10,000
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Short three-day refund window for dissatisfied customers
Tax Defense Network is a reputable tax debt relief firm consumers can trust, according to its customers. Garnering nearly four of five stars on Google reviews, 4.5 stars on the Better Business Bureau website, and an A+ rating with the BBB, TDN has been in business since 2007. These sound customer reviews and long history in business are why we named TDN our best tax relief company overall. TDN is owned by MoneySolver, a national financial firm.
TDN charges a flat-rate fee and will not work with customers who owe less than $10,000 in tax debt. Average prices range from $2,500 to $3,500, although pricing depends on the complexity of the case and the amount of taxes owed. TDN offers a free consultation as well as a three-day window to request a refund, which is less than some other companies offer.
The company offers financing options for customers who cannot afford to pay the full rate upfront.
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Best Value: Stop Irs Debt
Stop IRS Debt
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Slightly lower past customer ratings
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Some customers said calls were not returned
Stop IRS Debt, based in Encino, California, has been in business since 2001. Well-established tax debt relief companies are more likely to be reputable and provide a satisfactory customer service experience and high value for consumers.
Unlike many of the other tax debt relief companies reviewed, Stop IRS Debt shared pricing estimates on its website, which is why we chose the company for best value.
Tax returns may cost just a few hundred dollars, while simple tax resolution services can range from $1,500 to $2,500. The company also offers a free consultation and is quick to point out that more complex cases can cost much more.
The company has an A rating with the Better Business Bureau and has been accredited since 2011. It has earned an average of 3.44 stars on the BBB website, though there are some negative reviews on the BBB site as well as in other places. The company was good about responding to customer complaints on the BBB website.
A handful of negative reviews stated that the company did not resolve their tax debt and also did not return calls, although these taxpayers did not say how much they owed the IRS.
Stop IRS Debt can assist customers in applying for offers-in-compromise, currently-not-collectible status, installment agreements, or innocent spouse relief, just like the other firms on this list.
How Do Tax Debt Relief Companies Work
The tax relief sector is made up of companies that provide advice and representation to taxpayers who want to settle their tax debt with the IRS and state tax agencies. Many taxpayers struggle to understand the eligibility criteria and complete the necessary application forms of such programs.
Legitimate company will employ trained tax experts who know the tax codes ins and outs and can help walk you through various financial options with sound tax advice. They can help you reduce your debt, reduce or waive penalties, or make an offer to the government for a payment plan option.
The key is to be able to identify a legitimate company from the fraudsters that are constantly on the prowl. Probably the best way to ensure you are dealing with a legitimate tax professional is to not deal with people who contacted you out of the blue. It is important to keep in mind that a real tax debt relief company does not cold-call or send unsolicited emails to potential customers. They are often accredited and can be easily found online or in any local business directory.
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How Tax Relief Works
Working with a tax relief company usually starts with a free consultation. Youll chat with a representative, give them details on your tax issues, and the company will do a quick analysis of your situation to determine which tax relief service can help you.
Next, the company will contact the IRS or your state tax authority to get the updated records of your account. Theyll review this, determine the best solution, and walk you through the process and costs before moving forward.
Finally, theyll work to resolve your tax debts. This might include using any of the following relief options:
- Offer in Compromise: This is a way of settling tax debts without paying off the full amount. Check out our guide on how to negotiate an Offer in Compromise with the IRS.
- Installment agreements: These agreements let you pay back your tax debts in smaller increments without incurring interest or penalty. Setting up an installment agreement can halt wage garnishment as well. Check out our guide on how to set up a payment plan with the IRS.
- Penalty abatement: If you meet certain requirements, you may be able to have any IRS penalties waived or reduced.
- Innocent spouse relief: This can keep you from being penalized for your spouses tax mistakes.
- Fresh Start program: The IRS Fresh Start Program lets you spread your debts off over a five-year period. It requires a minimum debt of at least $50,000.
> > Read More:What is tax relief?
Find A Tax Relief Company That’s Best For You
We’ve weighed the pros and cons of some major players in the space.
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Penalty & Interest Abatement
It doesnt happen often, but in rare situations, the IRS may offer penalty abatement for delinquent taxpayers who can demonstrate a special hardship. Under its First Time Penalty Abatement policy, the IRS may grant administrative relief for failing to file a return, pay on time, and/or to deposit taxes.
The agency lays out the following criteria:
- You didnt previously have to file a return or you have no penalties for the three years prior to the tax year in which you received a penalty.
- You filed all currently required returns or filed an extension of time to file.
- You have paid, or arranged to pay, any tax due.
Interest abatement is even more limited, and is rarely approved.
However, neither form of relief eliminates the tax bill owed, and the failure-to-pay penalty will continue to accrue until your tax is paid in full. Because you dont want a partial waiver, it may be to your advantage to wait until you fully pay the overdue tax before requesting relief under the first-time penalty abatement policy.
