Sometimes, the tax resolution industry gets a bad reputation. When tax resolution scams, aggressive “tax professional” marketing, and exaggerated claims of success are constantly in the press, it is understandable that many people think they are better off resolving their tax debt alone. Unfortunately, a few bad apples have ruined the bunch, leaving taxpayers in debt and feeling like there is nowhere to turn.
The tax resolution industry can provide substantial benefits for those facing tax debt, and there are easy ways to ensure you retail a legitimate tax debt resolution company. Here, we will discuss red flags to watch when selecting a company and what a qualified tax resolution company can offer.
How to Know if a Company Is Legitimate
All IRS-enrolled agents (those who represent taxpayers before the IRS) must be registered with the IRS. To become an enrolled agent, a person must pass an extensive comprehensive exam or have over five years of experience as a former IRS employer and participate in continued education courses throughout their career. When researching a tax resolution company, ensure their tax professionals have the appropriate credentials. You can verify an enrolled agent’s status on the IRS website or by emailing the IRS at a specific enrolled agent verification status email address, epp@irs.gov.
Spotting Unqualified or Scam Tax Resolution Companies
A few red flags to watch out for when selecting a tax resolution company. First, be wary of any company that guarantees substantial reductions or completely eliminates your tax debt. The IRS rarely allows taxpayers to pay less than they owe and only when the taxpayers meet extreme requirements. If a company is promising a get-out-of-jail-free card, walk away.
You should also be wary of high upfront fees. While a qualified tax resolution company will have you pay some charges upfront, this will not be a substantial amount. Reputable companies will charge you incrementally based on the progress in your case and in manageable installments.
What a Qualified Tax Professional Can Offer
At Highland Tax Group, our top priority is getting the best resolution to your tax debt. This involves presenting you with realistic options and likely outcomes and eliminating as much of your stress as possible throughout this process. We work with the IRS on your behalf to agree on a feasible plan for you to repay your debt. Contact us today to learn how we can help you settle your debt.