You have seen the advertisements on television where tax resolution companies are offering to help you settle your tax debt for pennies on the dollar.
Most people have signed up with tax resolution services hoping to have their balances negotiated with the Internal Revenue Service. There is no negotiation with the Internal Revenue Service. The Internal Revenue Service does have an Offer-In-Compromise program, but many taxpayers will not qualify for the program. The truth is that the Internal Revenue Service only accepts about 40% of the Offers-In-Compromises that they receive.
What should look for if you have tax problems? First and foremost is an honest assessment of your tax situation to determine what the best option is for you. Once an Enrolled Agent has reviewed your tax situation, they will give you the various options available, discuss the process to successfully resolve your tax situation, disclose all of the fees up front, and allow you time to make up your mind.
If they say you will only pay pennies on the dollar, are vague about the details and time frame to resolve your case, and pressure you to sign up immediately, find another person to work with. Those tax resolution firms are driven by sales and marketing and take advantage of a clients’ ignorance, fears, and greed to have them sign up immediately.
Before you make a financial decision about important tax matters, talk to your home town tax experts at Stadler & Company.