Sunday, 28 April 2013

How to Avoid Tax Relief Scams


Financial hardship is a stressful situation for anyone. Owing a tax debt that you are having difficulty repaying only adds to that anxiety. When threatening IRS letters start to roll in, it's easy to get desperate. While a number of tax relief solutions exist, dishonest people are also out there ready to prey on anxious taxpayers. Learn how to avoid tax relief scams and find a reputable company that can really provide help.
It Might Be a Scam if.....
  • The solution comes too quickly. The first step to tax relief is to consult with a professional. This meeting should just be a consultation, a chance for the company to gather information about you and your tax liability. They may present program options to you and explain the steps involved to participate. If your consultant immediately offers a quick solution to your tax problem, look somewhere else. Most likely it's just a sales pitch, an empty promise aimed at benefiting their company, not you. 

  • They guarantee a settlement. The IRS does sometimes agree to settle for a small percentage of the amount owed. However, those cases are rare and require a thorough investigation by the IRS. Any company that guarantees a settlement is most likely being dishonest. No one has that authority. Much time and painstaking effort is involved to apply and get approval for a settlement.
  • They offer a bargain, flat fee. Your tax situation is unique and so is the best tax relief solution for you. It only makes sense that you should be charged based on factors such as the complexity of your case and the number of tax years involved. Tax relief companies that charge a flat, standard fee for all customers are most likely not providing customized services. You won't be getting a bargain. 

Signs of a Reputable Company

It's important to note that real tax relief is available. Legitimate tax relief companies do exist and provide valuable services to their clients. These professionals are able to thoroughly review your circumstances, recommend specific tax relief programs and help you navigate through the qualification process. Often, they are able to leverage their good reputation and relationship with the IRS to advocate on your behalf. An honest professional will not make any guarantees, but will work hard to get the best tax relief solution available to you. 

Take Action

The most important step in tax relief is to find a reliable resource as soon as possible. The longer you wait, the more your penalties and interest will accumulate and the harder it will be to find a tax relief solution. Ask a reputable professional about your particular circumstances and start getting answers. Optima Tax Relief has a team of professionals ready to take on your tax problems. They have the experience and resources to offer viable solutions.