Tag: irs penalty abatement

Removing IRS Interest and Penalties

IRS Interest on Balance Due and Penalties If you fail to pay your taxes, it can result in IRS penalties - and also compounding interest, which makes your tax liability ...

Our Rating Criteria

Time in Business

How long a company has been in business can be a good indicator that they are doing something right and that their doors will be open going forward. Another benefit of a well-established company is over time the management and staff tend to become a stronger team and greater than the sum of their parts.

Licensure

When you hire a tax relief company or individual they are able to represent you by way of a specific power of attorney (IRS form 2848) with the IRS or state tax agency. An attorney, CPA or Enrolled Agent has the legal licensure to sign this form and represent your interests.

But who do you actually talk to before you hire a tax relief company? Very few tax relief companies employ licensed professionals to analyze your initial tax situation prior to a contractual engagement and power of attorney. The majority of tax relief companies fill this role with a fast-talking salesperson who knows just enough to be dangerous. As such they often give bad advice or suggest they can more than the can for less than they will ultimately charge you.

We highly recommend you only speak to an Enrolled Agent, CPA or attorney starting from the very first conversation.

Transparency

We dislike when tax relief companies are opaque about their ownership, management, and staff. If they are unwilling to tell us who they are, as well as their professional licensure status, then we think they are usually hiding something.

Online Reputation

While you cannot believe everything you read on the internet, you can get a good sense about a company's reputation. Angry customers love to tell the world. We look at a variety of credible sources to make a judgment.

Guarantee or Refund Policy

We believe that the client should come first. Tax relief companies that have a satisfaction guarantee and/or a refund policy stand out as willing to put the client's interests first.

Fees

We've found that tax relief companies that claim a "flat fee" for professional services rarely ever deliver because there are too many unknowns involved. As such, companies that claim flat fees tend to have the most client complaints surrounding the eventual price of services. An honest tax relief company will give you an estimate and bill you for work rather than give you a bate-and-switch on price.

Marketing Claims and Advertising

When we see a tax relief company touting how much money they can save you or that there are new government tax relief programs, we give them a big red flag. Despite the what you may have heard on the TV or radio, or read on a website, the IRS very rarely knocks money off a tax bill. Less than 1% of the population qualify so run the other way if a tax relief company is quick to offer big savings as the reason to hire them.

Associations

We like to see tax relief companies belonging to business and professional associations, or be recognized by peers or their community.