What to Look for When Choosing a Tax Debt Relief Company

July 08, 2024 by Kate Ferreira
Five Stars

Dealing with tax debt is a stressful situation that many taxpayers face daily. However, the added anxiety of knowing what to look for when choosing a tax debt relief company might feel impossible. We are here to relieve some pressure and help guide you on what to look for when choosing a tax debt relief company.

The first thing you want to do when choosing a tax debt relief company is confirm that you are speaking to a licensed tax professional. This is either a licensed Enrolled Agent (EA), a Certified Public Accountant (CPA), or a tax attorney. Unfortunately, many tax debt relief companies employ salespeople who are given titles such as “tax consultant” or “tax associate.” These salespeople will try to sign you up for their services; however, they are not licensed to represent you in front of the IRS and are not in a position to be giving you tax advice. Many of these companies will employ more “tax associates” or “tax consultants” than actual tax professionals who are equipped to handle your tax debt – and as a consumer, this should be concerning.

At TaxAudit, we employ more than 150 tax professionals who are licensed EAs, CPAs, and tax attorneys. We do not employ any salespeople, so you can trust that when you are speaking to someone at our company about your tax debt options, you will be speaking to a licensed tax professional. Additionally, you will not be given a sales pitch – rather, you will be given a straightforward quote for the cost of services to be performed. We understand that the last thing you want to deal with when trying to handle your tax debt is a salesperson trying to upsell you on services or take advantage of your situation.

The second thing you want to do is ensure that the price you pay for tax debt relief services is reasonable. Some companies will charge exorbitant fees for their services. For example, we had a potential client call in and advise us that another company quoted them $6,000 to complete a streamlined installment agreement. At TaxAudit, we are able to provide that same service for somewhere between $1,000 and $1,500. In another example, we had a potential client let us know they had received a quote from a different company to do an Offer in Compromise for $15,000. While some Offer in Compromise situations can be tricky, this specific client had nothing special or unique about his situation, and we were able to offer him a quote for only $3,000.

While these are just two examples, this is something that, unfortunately, happens often in the tax debt world. Be sure to do your research and get multiple quotes. Sometimes, the cheapest or most expensive options aren’t always the best, so do your due diligence.


There are a lot of smaller firms that are honest and do a great job of providing debt relief services but, as always, be sure that you are speaking to a licensed tax professional and that you are paying reasonable fees for the services being rendered.

If you need any additional assistance or have further questions about tax debt relief, click here to visit our website. You can speak to one of our qualified, licensed tax professionals for a free consultation to learn where you stand and see what options you have for resolving your tax debt.

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Kate Ferreira
Communications Associate

 

Kate Ferreira is a Communications Associate with TaxAudit. A California Tax Education Council (CTEC) registered tax professional, Kate has been with the organization since 2015. Kate enjoys the challenge of writing about complex issues – including taxes. Outside of work she enjoys traveling, listening to vinyl, and going on adventures with her dog, Indiana Bones.


 

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