Are you considering hiring a tax resolution firm? Tax resolution services help individuals and companies navigate complex situations with respect to paying the taxes they owe to the Internal Revenue Service (IRS). Tax resolution companies can negotiate with the IRS on your behalf and help you settle your taxes. Hiring the right tax resolution firm is very important here. A lot of tax resolution firms will lead you astray with grand promises of solving your tax problems but fail to deliver actual results.
To help you out, we have prepared a list of questions that you can ask a tax resolution firm before hiring them. It can help you shortlist which firms you can work with and save time, energy, and money. Let’s begin.
1. How Long Will It Take?
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The first thing you need to ask is the average turnaround time for getting tax relief. As a reliable tax resolution firm will tell you, each tax resolution case can up to 3 to 4 months to settle. This depends on factors such as:
- When you provide all the necessary documentation
- Whether the taxpayer has been compliant in filing all of their tax returns
In some cases, the process can last long and take more than 8 to 9 months to complete. If a tax resolution firm tells you they’ll be able to resolve the matter within a couple of weeks, this is likely a red flag.
2. Is the Tax Resolution Firm Licensed to Resolve IRS Collection Cases?
Various tax relief firms work with a team of unlicensed personnel who lack the training and knowledge to handle IRS Collections cases. These individuals also do not have the license to legally advise clients on any tax-related issues.
If you want to seek help with tax resolution, it is vital that you hire a tax attorney, an Enrolled Agent, or a Certified Public Accountant (CPA) to handle your case. These tax professionals have the authority to represent you and settle taxes on your behalf with the IRS. We recommend asking for the credentials of the people you will be working with to avoid any serious repercussions.
Remember, the IRS could take action against you if you follow the advice of an unlicensed tax firm, and you could get caught up in a legal hassle.
3. Who Will Be Handling Your Case?
Now that you know if the firm employs licensed professionals, it’s time to dig deeper and ask who will be handling your case. Odds are, the person you talk to at the beginning won’t be the one who will represent you. It’s important to clarify this at the beginning. Otherwise, you may end up revealing sensitive information to the wrong person.
As mentioned earlier, they may also lack the training and knowledge to handle your case and could give the wrong advice. We recommend making sure that a licensed professional will be representing you before you talk about your tax problems in detail or share any documents.
4. What Services Do They Offer?
A reputed tax firm will offer a host of services that include filing appeals, audit representation, applying for innocent spouse relief, offers in compromise, penalty abatement, revenue officer assistance, payroll tax representation, etc. They will also be able to help you with sales tax representation, state tax representation, wave levies or garnishments, tax court representation, and guide you on tax law.
Remember, the range of services offered by a tax firm also reflects their expertise in this area. If a firm simply has a vague service offering for settling your taxes, it’s possible they don’t actually know what they are doing.
5. What Are Their Rates?
Another thing you need to watch out for is how much the tax resolution firm will charge you. A lot of tax firms have hidden fees, which can pile up by the end and leave you with a hefty bill. To avoid such situations, you should ask them about their rates and which services are included in those rates. A little transparency can go a long way here and help you make an informed decision to save money.
If the firm charges a flat fee, you should clarify what is included in the fee and make a copy of this information for your records. We also recommend reading the latest version of their billing policies to pinpoint any discrepancies that could cost you in the end.
6. How Much Experience Do They Have?
Before you decide to use a tax attorney for settling your taxes, you must ask about how much experience they have in this area. It also helps to know their success rate and the outcomes of the previous cases they worked on. If the attorney or firm you are working with has very little hands-on experience in negotiating taxes, then the rest of their credentials may not be of much use to you. They may also be unclear on how the overall process works.
Working with experienced professionals can improve your chances of a successful outcome and save your time, energy, and money. These professionals also remain up-to-date with changes in IRS regulations and how they impact your taxes.
Looking for a Reliable Tax Resolution Firm?
Working with a tax resolution firm has its advantages. It can help you resolve complex tax problems relating to audit representation, tax penalties, paying back taxes, unfiled returns, and compromising with IRS authorities. Their experience and expertise can prove vital to individuals and companies that owe taxes and help them achieve an outcome in their favor.
If you are searching for a reliable tax firm that employs licensed professionals and has a successful track record for tax resolution, we recommend reaching out to Polston Tax. They provide a wide range of tax resolution services and can assist you in navigating tax issues to avoid problems with the IRS. Their tax attorneys can help you ensure tax compliance much more easily. Among other things, the firm also offers accounting and bookkeeping services, tax planning, and tax return preparation services.