How to Find the Best Tax Relief Companies

by Bonnie Conrad

If you owe a lot of money to the IRS, chances are you are looking for a way to reduce the amount you owe and pay your debt. There are a number of companies out there promising to slash your debt and allow you to pay pennies on the dollar, but those promises are often overblown. In order to find the best tax relief company for your needs, it is important to take stock of what you owe and research the reputation of every company you are considering.

Take stock of what you owe the IRS. Gather all of your tax forms, as well as any letters, bills and other correspondence from the IRS. It is important to know exactly how much you owe before moving forward.

Take stock of your own financial circumstances. It is important to understand that the IRS is quite reluctant to significantly reduce back taxes for taxpayers who can afford to pay their tax bills in full. If you can demonstrate that your own financial situation is dire, it will be easier for the tax relief company you choose to negotiate with the IRS.

Find a certified public accountant in your area by going to the website of the American Institute of Certified Public Accounts at Certified public accountants are excellent resources for many different tax matters.

Contact the tax relief services you are considering and ask about any fees that are assessed. The fees charged by tax relief agencies vary quite widely, from under $1,000 to more than $4,000. It is important to make sure that the amount of taxes you owe is high enough to justify the fees you will have to pay.

Contact the Better Business Bureau to get information on any complaints that have been lodged against the companies you are considering. The Better Business Bureau is an excellent repository of information, both for local businesses and for national tax relief agencies that do business mainly over the phone and on the Internet.

Photo Credits