If you owe the IRS taxes, a federal tax lien must have been filed. The highest possibility is that your phone is flooded with calls from tax resolution firms and telemarketers offering their services. My advice is that you cautiously proceed when choosing a tax resolution firm to assist in handling your tax debt. It is your livelihood and finances at stake, not theirs. When considering a tax resolution firm, the following information will guide you.
Doing Your Homework
It involves researching the credibility of the firm. Check your consumer complaints and for how long they have been in business. Much of this research can easily be done online. Few complaints may not be an indication of poor service. Numerous services may be an indicator of poor services. Always make sure you ask for references so that you can gather information from clients who have been served earlier. This will, in turn, help you in working with the right people and avoid regrets in the near future.
Whether you are working with the Licensed Professional
Only a CPA, enrolled agent or a licensed attorney can negotiate with the IRS on your behalf. Many firms have unlicensed professionals as their clients work. In your case, it can be hard to have any correspondence with the tax professionals.
Identifying All Fees
Ask the amount of fees needed in resolving your case. In many firms, they start with an up-front fee, claiming that no any other fees will be required. This will assist in completing your case by only being charged on additional fees. Ask whether the firm has an hourly billing rate. You may encounter this scenario if this is the firms’ principle. This is not allowed by either State Bar associations or IRS Circular 230. Never be afraid of splitting the fee over several months. Always be keen in ensuring your work is not half done as you will have to pay more in future for your work to be completed.
What is Expected of You?
Finding out exactly what your obligations are is very important. Often, providing financial documentation or other information to assist in pursuing a resolution on your case is very essential. You may be charged additional charges if you don’t give this information in time. If you do not follow firms’ policies, you may end up wasting a lot of money. If you have not given out any information, the firm will leave your case pending until you deliver all the information they need. In the meantime, they will be accomplishing nothing concerning your matter.