Helpful Tips in Hiring a Tax Representation Firm

Tax increases, a challenged economy, and an aggressive IRS all add up to millions of people that are behind on taxes and need relief. Due to the higher demand of people needing tax help, there are many companies that want to earn your business representing your rights before the IRS and state taxing authorities. With all these choices available, there are a few key things to consider.

• 1) "Success Rates"
• 2) Due Diligence
• 3) Contracts
• 4) Penalties and Interest Savings
• 5) "Pennies on the Dollar"

Avoid companies that claim a success rate.

Some companies claim X% success rate, or $XXX,XXX dollars they have saved their clients. Since each case is unique, past performance on "savings" can be very misleading. Success has many different meanings when it comes to your specific needs. When it sounds too good to be true, it probably is. Ask your consultant how they can justify their claims of "success" and "savings," then ask yourself how realistic their answers are. 

Doing your due diligence is important, but not all resources are created equally

Due to the fact that internet "blog" sites do not verify identities, contract execution, or the validity of the complaint, they can contain both accurate and inaccurate information. If the post exists on several boards and it looks like they have been copied and pasted, they probably have been. In today's incredibly competitive business world many resources are available. The Better Business Bureau will work to resolve complaints through mediation and will verify the legitimacy of the complaint. Other resources such as the Attorney General's office of the State where the firm is based can also be credible. Remember, there are many places to look, however, few places that provide accurate information time and time again. Verify the source or you may be risking more than you can afford.

Organizations which verify the legitimacy of complaints

• Better Business Bureau
• Chamber of Commerce

Websites that allow unverified and anonymous comments

• www.ripoffreport.com
• www.complaintsboard.com
• www.800notes.com
• www.pissedconsumer.com
• www.thesqueakywheel.com

Read the contract carefully before you sign

All tax resolution companies that employ attorneys and CPA's bill by the hour. All professionals bill their time by the hour. Does the contract clearly state that, is it hidden with vague language? If they are offering you a flat fee, be sure to read the contract from top to bottom. Typically flat fee contracts will have a disclaimer for a change in the scope of work or a lack of contact. Unfortunately, there simply is not a way to accurately estimate the scope of work needed to resolve a tax debt case until all the facts are gathered from both the client and the taxing authority.

Be cautious of claims to waive penalty, interest and tax

There is absolutely no way to give a dollar amount or percentage estimate of how much money a professional taxpayer representative can save you without getting to work. If the consultant makes these claims, you should question why they feel they can get these waived without all the facts.

"Pennies On The Dollar" should send up red flags

When it comes to tax liabilities, most people want to pay as little as possible. Many companies will tell you that they can settle your debt for less, however, this is not true most of the time. Although the Offer In Compromise program is real and We implement it successfully in some extreme cases, it is not a viable solution for most people and should not be used as an enticement to hire a firm. Click here to see what the IRS has to say about this solution and how firms may market it.

We strive to save our clients money, time and stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-902-0778 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.