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Reconsider going to a settlement company for tax relief

On Behalf of | Jan 18, 2021 | Tax Debt

Needing help with a confusing issue or one that Atlanta residents may not know much about is understandable. While reaching out for that help can be a good first step in dealing with an issue, it is important that individuals have the right help for a particular concern. For example, some people may need tax relief due to outstanding balances, and they may consider going to a tax settlement company for assistance. However, that might not be the best option.

While settling tax debt could be helpful through an offer in compromise or other settlement plan approved by the IRS, tax settlement companies are not always as they appear. They work like other debt settlement companies and often claim to have professionals who previously worked for the IRS and know how to get the best results. While that may be true as far as having former IRS employees, they cannot guarantee a specific outcome without knowing a person’s information, and many settlement companies make unfulfillable promises upfront to draw in clients.

If a settlement company promises to obtain an offer in compromise for a client, that promise should be met with some wariness. After all, it is difficult to qualify for an OIC, and the process for applying for and possibly being approved for the program is long and complex. Settlement companies often charge substantial fees, and with the application process taking months to complete, taxpayers could end up in a more difficult financial spot by owing the settlement company high rates and possibly not getting the OIC assistance they desired.

Gaining tax relief through an offer in compromise is possible, but there are qualifications that need to be met. In some cases, taxpayers may not qualify, but a tax settlement company may not offer that information upfront and instead cause taxpayers to pay fees before they are met with a denial for an OIC. As a result, it may be more helpful to consider working with Atlanta legal advocates who keep taxpayers’ best interests at the forefront.