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Can a Tax Debt Relief Company Really Help Me?

Americans owed more than $133 billion in tax debt (including penalties and interest) in 2021, according to the most recent data from the IRS. That’s up 16% from the previous year. No doubt this is due in part to the pandemic and looming recession. Unfortunately, most COVID-19 relief efforts have come to an end. This means that millions of taxpayers are now facing collection actions. If you owe back taxes and are being threatened by the IRS, it can be very overwhelming. You may even be wondering if seeking the help of a tax debt relief company is the solution to your problem. Truth be told, it’s not always the best fit for every situation, but there are definitely times when hiring a tax debt relief company is the right choice.

3 Reasons to Hire a Tax Debt Relief Company

If you’re asking yourself, “can a tax debt relief company really help me?” consider these three benefits of working with a tax professional.

1. Free Tax Consultation

Regardless of your situation, you can get a better idea of what your options may be by simply taking advantage of the free consultation offered by many tax debt relief companies. At Tax Defense Network, we’ll go over the specifics of your tax issue and explain your tax relief options. We also disclose all fees associated with our customized solution for your specific situation. At the end of the consultation, you can choose to handle the matter on your own or enlist our help. Either way, the initial consultation is always free!

2. Tax Code Knowledge

Do you understand the ins and outs of state and/or federal tax codes? We’re guessing you’re not an expert in this area. Thankfully, you don’t need to be one with a tax debt relief company on your side. At Tax Defense Network, our knowledgeable staff is up to date on the latest tax law changes and new relief programs. We’ll not only help you deal with your current tax issue, but also ensure you have the tools to keep you on the right track moving forward.   

3. Negotiation Experience

Negotiating with the state or IRS can be frustrating, especially if you don’t know the right questions to ask. This is where a tax debt relief company can come in handy. A tax professional who has a proven track record with tax negotiations can take the weight off your shoulders. At Tax Defense Network, we’ll work hard to get you the best deal possible. In some cases, this may result in a significant decrease in taxes owed (Offer in Compromise), temporary relief from payments and collection actions (Currently Not Collectible), or an affordable payment plan that allows you to pay off your tax debt over time.  

Of course, not everyone who owes back taxes will need to hire a tax debt relief company. If your tax debt is below $10,000, you can easily set up a payment plan by applying online, by phone, or by mail.  

What to Look For in a Tax Relief Company

Hiring a tax debt relief company generally makes sense if your tax debt is over $10,000 or you don’t have the confidence to deal with the IRS on your own. But before you decide which company to work with, you’ll want to do some research. Here are three things you’ll want to explore before signing any contract.

  • Experience. Find out how long the company has been in business. We suggest working with one that has at least 10+ years under its belt. This shows that they know what they are doing and are acting responsibly. You’ll also want to verify that they have licensed tax professionals (enrolled agents, CPAs, and tax attorneys) on staff. If you’re interested in an Offer in Compromise, be sure to ask about client success stories, too!
  • Reputation. It’s important to get a well-rounded picture when looking at a company’s reputation. Dealing with tax debt is not black and white, so expect to find some unhappy clients. This, however, should not be the norm. Be sure to check the Better Business Bureau for customer reviews and complaints. Verify the company is accredited, too. You’ll want to work with one that has an A+ rating for at least 10+ years. Other review sites to consider include Google, Trustpilot, and ConsumerAffairs.
  • Price Transparency. When researching tax debt relief companies, be sure to ask about their fees. Some charge $250 to $500 for the initial consultation, while others are free. Additionally, inquire about flat-rate pricing. Some companies charge a smaller fee upfront only to hit you with numerous hidden fees later. It’s a good idea to get everything in writing so you understand what services you’ll be receiving and the total cost.

Since 2007, Tax Defense Network has helped thousands of taxpayers get relief. We have licensed professionals across the country so we can assist you no matter where you live. Our 4.52 BBB customer rating is one of the highest for a tax relief company and we have two Torch Awards for Ethics. We offer a free, confidential consultation and flat-rate pricing, as well as flexible financing for those who need it. If you’d like to see if we’re the right fit for you, call 855-476-6920 for your free consultation today!