Any mail from the IRS is an indication that there is a problem with your tax filing. The most common notice you might receive from them would be tax penalty notices if you have outstanding taxes.
Tax Settlement Firms to the Rescue
Here is where you need to reel in the experts who can help you offer the best financial solution to this crisis. Now, if this is your first time dealing with settlement firms, you might wonder are tax settlement companies legit.
Now, this all depends upon your research about the companies. First and foremost, you need to understand the expectations of a tax settlement firm. Many credible firms offer free consultations wherein you can discuss your situation and get the right advice. They will first want to know why you got a notice and consider your financial history before offering any type of solution.
Beware of any firms that straight away claim that they have a 100% success rate of reducing the tax penalties of their clients. IRS does not reduce tax penalties for everyone. They have certain protocols set in place and after careful validation, will in special circumstances reduce the penalty which could take months to accept.
If your financial track record is not good, then your tax settlement firm can apply for an Offer in Compromise with the IRS. This is an agreement between you and the IRS wherein you can settle your tax penalty for less than what was initially set by the IRS.
Services offered by Tax Settlement Firms
Some of the services offered by them are:
- Negotiations with the IRS on your tax debts
- Representing you in court
- Explaining tax laws in simple language
- Help in submitting petitions or notices to the IRS
Depending on the type of tax settlement firms, the fee structure would differ from company to company. You might need to discuss the payment offer with the firm and ensure that any discounts or reductions in the fees are mentioned in the contract.
Hiring tax settlement firms would be a wise move especially if you are struggling with taxes. They can easily reduce your tax burdens and offer a solution for the same.