I’m sure most of you are very confused when it comes to selecting a tax relief company. And how could you not be? You’re bombarded with confusing language, claims, and information. So how do you make sure you’re in good hands and not getting ripped off? Today we’ll discuss 4 MAJOR RED FLAGS to notice when it comes to selecting the right tax relief company.
1. The first red flag is if the company is overpromising or guaranteeing results. If a professional guarantees to settle your tax debt for a specific amount, then this is a major red flag. That’s like you going into a trial and your lawyer telling you he knows which way the jury is going to rule. They simply can’t know ahead of time. It’s the same with the IRS. The IRS is the final judge, and they have the last word. This is because the IRS has the decision in the amount you owe, not the professional, so this is simply a promise that cannot be kept. A reputable firm will conduct an initial analysis of your financial situation before they ever agree to take you on as a client, to determine which option would be more likely to resolve your tax case. So you need to choose a skilled and experienced Tax Resolution Professional to maximize your chances of getting a positive result.
2. The second red flag depends on who’s going to represent you. The only professionals that can represent you with the IRS are CPAs, Attorneys, or Enrolled Agents. If you are dealing with anyone who does not have one of these titles, or especially if they’re calling from an 800 number, then they are likely salespeople who may not lead to the results you need.
But note, even within the tax professionals, not all of them have the same specialized training and tax relief experiences. According to the AICPA, less than 10% of CPAs engage in representation work. According to the NAEA, only 2% of Enrolled Agents engage in any form of representation work.
Surprisingly, the vast majority of tax attorneys actually practice in the trusts and estates area, and not the IRS representation for tax collections and examination.
Make sure to ask their title during the initial phone call or meeting, and how many years of experience they have dealt with the IRS.
Our firm’s head is a CPA and also a Certified Tax Resolution Specialist, and he has been dealing with IRS problems for over 30 years.
3. The third red flag is when they ask you to pay high fees upfront without any payment plan options. If a firm is requesting the entire amount upfront for a big case, you are generally dealing with a large National Tax Relief Firm that you see and hear on TV commercials or radio. These companies are usually hungry for your money to continue to pay for their expensive advertising without regard for your case. A reputable tax resolution specialist will usually require a reasonable deposit to start your case and allow you to pay over time that your budget can handle.
4. Lastly, while you need to be aware of high fees, you also need to be aware of Low Fees, too. Some companies rip off taxpayers by telling them one low price to get them in the door, and then inform you later of all the additional services you’ll need, and ask for more money later from you to complete your case. This ultimately results in a higher price for the services. A reputable professional will tell you all the services needed to resolve your case and estimate all associated fees needed to permanently settle your tax case.
Our firm specializes in providing affordable solutions to individuals and businesses with tax problems with the IRS or state taxing agencies. We will represent you vigorously in front of the IRS, so we can bring back your happy life. Thank you for watching, and see you in the next video.