What Do Tax Debt Relief Companies Do?
I really hope you don’t know what tax debt is or how it’s incurred, because I think the only way you can possibly know is if you have been there. For those of you who don’t know, tax debt is any amount you owe to the IRS after the filing deadline. Even if you make a partial payment, the unpaid amount is considered tax debt, and if it’s high enough, filers will seek help from tax debt relief companies.
Just like you can find with debt relief companies like consumer debt relief companies and student loan debt relief companies, there are tax debt relief companies that are not out to help you, but instead to scam you. However, there are also reputable companies out there who really can help. How can you tell the difference? Watch for these red flags:
- They require upfront fees with very little information about the services they provide.
- You never get to meet with them in person.
- They promise to wipe out your tax debt.
- They promise guaranteed results.
- They require you to pay over the phone with a credit or debit card.
If you can’t pay what you owe the IRS, talk to them to see if you can work out a payment plan you can afford. You can also get tax debt help from a CPA or other tax professional. If you can’t afford one, see if you qualify for low-income tax help.