Choosing Among Tax Settlement Companies

BusinessManagement

  • Author Prince Shahzad
  • Published January 24, 2012
  • Word count 640

Would you consider going to court without having an attorney by your side to defend you? If the answer is no, then the same question could be asked as to why when a person owes the Internal Revenue Service thousands of dollars they would opt to defend their position and go into negotiations with the federal government with no one on their side to present their case.

Tax attorneys exist for a reason. Tax Settlement Companies exist to defend the American Taxpayer from being asked to pay more than their fair share of taxes. Once a tax bill is calculated, penalties and interest being to accrue if that bill is not paid immediately. The problem here is that many taxpayers never realize in a timely fashion that they owe taxes at all, and only years later are faced with a letter stating that they owe back taxes in the amount of "YOU MUST BE JOKING - THAT MUCH?" If this has happened to you, well then you are not alone. Over 200,000 tax liens are being filed monthly on American Taxpayers, many of whom never realized that they owe back taxes at all.

A good Tax Settlement Company will never make empty promises, such as offering to settle debt for "pennies on the dollar." That is not the way it works. Reputable Tax Settlement Companies will work on you behalf to first attempt to reduce your debt by filing or re-filing tax returns, requesting penalty abatements where applicable, and then negotiating on your behalf the best option for resolving your debt. A tax settlement attorney will know the best way to present your case, as well as discovering the best option available to the taxpayer based on their assets, financial circumstances, income, expenses, and age of the debt. There are strategies that Tax Settlement Companies consider when resolving IRS or State back tax problems that will often result in substantial savings for the taxpayer.

If you owe back taxes and are wondering "where do I go from here" then the first piece of advice would be to search for a reputable Tax Settlement Company. Once you have a consultation with a tax professional, they will be able to give you an idea of what your options will be, and get you back taxes help. Larger tax settlement companies typically work nationwide, and handle thousands of cases per month. They specialize only in back tax problems with the IRS and States, and normally will not take on property tax issues.

Once you begin working with your tax settlement company they will require some participation on your part in terms of paperwork. Do not be worried though as most of it is very basic like submitting pay stubs, proof of certain expenses, and any hardship expenses such as medical bills. Tax settlement companies will also get the information they need directly from the IRS or State with regard to your back tax problem.

If you have unfiled tax returns a full service tax settlement company employs CPA's who for a fee can take care of your tax returns for you. This is advisable as many tax preparers make mistakes that can be costly, and having a CPA file your returns in partnership with your tax attorney will ensure that no errors or mistakes occur.

When you seek out tax settlement companies be ready with questions for them in order to ensure that you work with the best. You will want to know how quickly they will begin working for you, how long the process takes, how much money they will want up front, and so on. When looking for back taxes help choosing the right tax settlement company can be the answer to your problems, as their expertise and know how will resolve your back tax problem in the most affordable way possible.

Prince Ahmed writes for Community Tax Helpers which offers IRS or State Tax problems with a wide range of services e.g. Can't Pay Back Taxes and IRS Penalties and Interest

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