A tax relief service is a company that works with the IRS to get your tax relief. These experts are tax attorneys and accountants who have extensive knowledge of the tax system and can help you create the best payment plan for your situation. They can also stop wage garnishments and establish flexible payment plans.
Tax Relief Companies Can Help Eliminate Penalties
There are two main types of tax relief companies. One charges a flat hourly rate, and the other charges a set rate per case. You can choose the one that suits your needs best. But, before you start work, ensure that there is no upfront cost.
Tax relief companies can help you reduce your tax debt. They will help you analyze all of your paperwork and find the most viable solutions. They will also contact the IRS and state tax authorities on your behalf to negotiate a lower tax bill.
They Can Negotiate Directly With The IRS
If you’re a high-tax payer, you may be tempted to hire a tax debt relief company to negotiate with the IRS on your behalf. However, you need to consider your debt and the possibility of other payment options first before hiring a tax relief service. You should also be aware of the fact that hiring such a company is expensive and that you may be scammed if the wrong one is chosen.
A reliable tax debt relief service will avoid making any specific promises and will be upfront about the costs involved. They should also offer free consultations and be accredited by professional organizations, which reduces the risk of scams. They can negotiate directly with IRS to help you with tax debt relief services. Moreover, they are available all over the country.
They Can Also Set Up Flexible Payment Plans
Tax Relief Services can create flexible payment plans depending on the nature and amount of your tax debt. These plans allow you pay off your debt in a set amount of time, usually over several months. These plans are usually easy to set up, even for small debts. This service usually costs only a few hundred dollars.
The IRS offers three types of payment plans. There are three types of payment plans offered by the IRS: long-term, short-term, and installment agreements. For small debts, you can apply for a short-term plan, which can be set up for 120 days or longer. You can apply for a longer-term plan if you owe more. This plan can be extended up to six years.
They Can Stop Wage Garnishments
You may not realize it, but there are ways to stop a wage garnishment. One way is by paying your tax debt in full. While the garnishment is ongoing, interest and penalties will continue to accumulate. However, if you can pay your debt in full in a lump sum, you will avoid the wage garnishment altogether. You can pay your debt using your bank account, credit card or debit card. You can also sell assets to help pay for your tax debt.
Wage garnishment can be caused by an IRS Form 668-W. While this is unfortunate, communicating with the unit responsible for this action is the first step. A professional can help you avoid garnishment.