Income tax is notoriously complicated for many people. The various laws, codes and regulations dictating the filing of taxes can make it difficult for Texas residents to resolve issues with the IRS by themselves, particularly when they wish to dispute specific fees or penalties. A number of professional services offer to assist taxpayers in handling such issues, but it is important for interested parties to carefully assess these services to determine whether they are trustworthy and legitimate.
According to one financial advisor, taxpayers should be wary of any company that guarantees to reduce customers’ tax obligations in exchange for an upfront payment, calling such a promise a “red flag.” He noted that is impossible for any service to guarantee its ability to settle a one’s obligations prior to contacting the Internal Revenue Service. Experts also caution taxpayers against businesses advertising an ability to resolve tax issues for pennies on the dollar. The IRS address tax liabilities on an individual basis, taking into consideration the filer’s ability to pay and other factors that make it impossible for a company to promise such dramatic results.
In some cases, the IRS is willing to work directly with taxpayers in resolving problems and establishing an alternative collection plan that protects those individuals from further penalties. For instance, taxpayers who can provide documents proving their financial hardship may qualify for an offer in compromise. The IRS might also agree to allow a taxpayer to pay back his or her liabilities in smaller monthly installments, although interest will still continue to accrue.
It is important to note that numerous professionals and services do offer legitimate assistance to struggling taxpayers, offering realistic advice without the outlandish claims of their less reputable counterparts.
If you are unsure how to best proceed with a dispute or issue with the IRS, contact a qualified tax attorneys and other tax professionals for advice. These professionals can provide a substantial amount of help in your negotiations with the IRS.
Fox Business, “The Right and Wrong Ways to Resolve Tax Issues” Emily Driscoli, Aug. 05, 2013