Getting a tax debt resolution is similar to a regular debt settlement. If you are late in paying federal taxes, the IRS will act like a creditor, saying you may face consequences if you don’t pay up soon. The difference with taxes, however, is that the claim of potential consequences is true. Your assets may get frozen or seized, and you will be in an economic morass. In searching for a resolution, you may enlist in help from an attorney or a company that offers tax resolution services. As with any financial issue, you need to watch out for potential scams.
Tax debt resolution services will first consist of a free consultation. This part is free, so you can get a consultation from anyone offering services. However, you must watch out for something called a retainer agreement. Companies offer a retainer to make you think they are charging a fair price. You pay a retainer fee to make sure your case will be seen until the final conclusion by the same people. However, when you sign a retainer agreement, this gives the company the ability to change the fees they are charging at any time. This is a major reason why you can’t settle for the first offer from the first company, and you need to research multiple firms before signing any paperwork.
“No refunds” equals “no business.” Not all attorneys and debt resolution services are successful, and getting your money back should be a result of failure. If the company does not offer a money-back guarantee, the company is more invested in making money than helping you with your tax problems, so you should look elsewhere for help.
Also be careful when the company talks about power of attorney rules. If the company says signing a power of attorney document will put your case on hold, look somewhere else for help! Filling out a POA document simply means the company will be able to negotiate with the IRS on behalf of you, but this cannot stop the IRS from pursuing any legal action, such as levies or garnishments.
Whenever you try to get help with your tax debt issues, you should always check resources from the Better Business Bureau first. With this specific issue, search for companies who deal with “tax return preparation” or “tax reporting service.” Companies that are accredited with the BBB should be places you look first because of the readily available information about them. Keep this in mind, as well as the information in the previous paragraphs, and you may be able to get a settlement that works for you.
He played clarinet for the Marching Tar Heels in 2005 and 2006. He also volunteered for STV, the student-run television station at UNC-Chapel Hill, in the spring of 2010. He shot video, wrote scripts, and acted for “Off the Cuff,” UNC’s longest running sketch comedy show. He has the rare distinction of having lived in a dorm all four years of his undergraduate college career. He was also on Franklin Street on the night of April 4, 2009. His future plans are to pursue a master’s degree in journalism and to one day work for the media as a sports journalist or broadcaster.
Being one of eight children, David realizes finance is an important topic to everyone, regardless of his/her knowledge of the subject. His interests are in personal finance, budgeting, and savings.
In his spare time, David enjoys watching sports and standup comedy, as well as doing crossword puzzles and writing in the first person. He also thoroughly enjoys trivia and, one day, hopes to participate on the game show Jeopardy!, where he will try to break Ken Jennings’ 74-game win streak.