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Tax settlement companies may not offer the help you really need

On Behalf of | Dec 14, 2018 | Tax Law

Problems with taxes and the Internal Revenue Service can affect anyone. You may think you are in line to stay on top of your tax obligations only to later experience a major financial setback. As a result, you may not have the ability to pay your taxes, and your assets could be at risk of seizure by the IRS.

In this type of predicament, you undoubtedly want to do what you can to get back on track. However, it is wise to remember that some fast options are too good to be true. For instance, tax settlement companies may offer great results, but they may not actually follow through.

Remain wary

Many tax settlement companies claim that they hire tax experts and professionals who can help get your tax debt under control. They may claim that they can negotiate with the IRS to substantially lower your debt and that members of their staff once worked for the IRS themselves. These claims may have you feeling that utilizing the services of one of these companies is your ticket out of a tough spot. However, you may want to consider the following information about misrepresentation:

  • Though these settlement companies may claim that some of their employers are former IRS agents, it is more likely that their staff consists of standard customer service workers.
  • These companies also commonly state that they can get your debt lowered, but negotiating with the IRS is difficult, and lowering tax debt is even more challenging. As a result, your debt may only lower slightly or not at all.
  • While some settlement companies may actually put forth effort to work on your behalf, others are completely fraudulent. They may take your upfront fees (which often consist of thousands of dollars) and not actually do anything to help you.
  • Of course, it is not impossible to receive a reduction in your debt from the IRS. However, if a company claims that you will qualify for an offer in compromise without first looking at your information, you may want to remain wary, as not everyone qualifies for this IRS procedure.

Learning that tax settlement companies are often not all they claim to be does not have to dash your hopes of finding help with your tax issues. In fact, you can work toward finding a legitimate way to address your situation by consulting with an experienced Ohio tax attorney.