__CONFIG_colors_palette__{"active_palette":0,"config":{"colors":{"62516":{"name":"Main Accent","parent":-1}},"gradients":[]},"palettes":[{"name":"Default Palette","value":{"colors":{"62516":{"val":"var(--tcb-skin-color-0)"}},"gradients":[]}}]}__CONFIG_colors_palette__
Tax Debt Relief

Pros and Cons of Hiring a Tax Relief Company (2020)


By Expert Contributor

Contracted writer for Credit Knocks.


Advertiser Disclaimer - Some links on this page may pay us advertising fees.

Summary: We take a look at the pros and cons of hiring a tax relief company in 2020. 

Have you thought about hiring a tax relief company? It could be a smart move. After all, the IRS has a lot of power, especially when you owe $10k or $15k or more in back taxes.

But you know what?

credit knocks logo

No Money to Pay the IRS?

Get a free consultation with a tax relief expert to see if you qualify for the Fresh Start.

It's quick, easy, and free.

We’re not here to tell you what you already know. You came here for solutions – and that’s what you’ll get.

If you’re wondering whether tax debt relief companies are legit, here’s some good news.

They are.

Do you know what else?

tax debt relief pros and cons

We’ve done the homework for you.

And we have the inside scoop on the good, the bad, and the awesome when it comes to hiring a professional

So, let’s dive into the pros and cons of working with a tax relief company.

You're here because you already know about the power of the IRS, their power to garnish wages or file a tax lien on your property, and it's reached the point where you need to act.

You're in the perfect place!

By the end of this article, you'll be able to make a great decision about your next step whether it will be attempt this on your own or choosing to hire an expert to help.

Top 5 Reasons to Hire a Tax Relief Company

If you owe back taxes, you can benefit from consulting with a tax relief company. 

Think about it.

They do this every day.

Give yourself a break.  8% of all U.S. taxpayers are delinquent.  You are not alone!

And they’ve dealt with just about every scenario imaginable.

Instead of letting yourself feel overwhelmed, consider these top reasons to leave it to the experts.

credit knocks logo

IRS Writes Off Millions Yearly

See if you qualify for tax relief.  Get a free consultation with a tax relief expert to see if you qualify today.

It's quick, easy, and free.

1. Free Consultations

A free consultation is a great way to get your questions answered if you’re on the fence about working with a tax relief company.

After all…

You should get to know the company before you fork over a handful of cash to hire them, right?

During your free consultation, you’ll hear about some of the tax relief options, so you know where you stand.

And you know what else?

The company will ask you about your situation and customize the solutions to fit your needs.

Get a free second opinion!

2. You Get Out of Talking to the IRS

The three scariest letters in the alphabet are IRS. Talking to the IRS as you sift through the options for tax relief is intimidating.

Plus, it can take a ton of time.

But there’s a simple solution.

Quick Tip:

Once you start an installment plan, you will have a harder time qualifying for a debt reduction request later.  We recommend you speak to an expert to see if you qualify for tax relief first.

Hire a tax relief company, and they’ll do all the talking for you!

The company will negotiate on your behalf, so you don’t have to feel the stress or spend precious hours on the phone with the IRS.

credit knocks logo

Get Better Rates With A Higher Credit Score!

In a recent study at Credit Knocks, we found that *48% of clients who used a credit repair company got a credit score increase of 100+ points.

Consultation is quick, easy, and free.

3. Smoother Negotiations Can Mean a Better Deal

You might not know what to ask for when going over your options with the IRS.

If you don’t know the right questions to ask, how can you be sure you’re getting a good deal?

Offer in Compromise Mistakes:


Tax relief expert (and former IRS revenue officer) Jeffrey McNeal says when he processed offers, he saw tons of mistakes made on the forms, even when prepared by CPAs and enrolled agents!

Instead of hoping you come out ahead, leave it to the experts.

A professional tax relief company can smooth over negotiations to make sure you get the best terms available.

Get a free second opinion!

4. Access to More Resources

Do you know the ins and outs of the tax code?

Probably not.

But a tax professional does. Plus, they have years of experience and access to programs, incentives, tips, and tricks that you might not know about.

They’ll use their expertise to help you avoid unnecessary fees and penalties, tax levies, and wage garnishments.

Tax Relief Companies

Should you you hire a tax relief company to help you settle your back taxes with the IRS?

Pros

  • Free Consultation
  • Tax Experts 
  • Better Results

Cons

  • Additional Cost
  • Length Of Dispute Process

5. Faster Results

When you know the system, you know the quickest route from point A to point B.

And do you know what?

A company that specializes in tax debt relief knows how to navigate the system. They could get faster results than if you were to do it on your own.

Examples of success:

I browsed through dozens of testimonials from tax relief companies to find these.  Of course there were dozens and dozens I found for a higher starting balance.  

Initial Amount Owed

Resulting Amount Owed

See Testimonial

Tax Relief Company Used

Eric Owed $15,000

$3,500

Miguel Owed $11,000

$0

David Owed $15,000

Less than $1,000

Gary Owed $13,000

$0


Benefits to Hiring a Tax Relief Company:

You might think the only benefits to using a tax relief company would be to help reduce a balance.  But after reading hundreds of reviews of tax relief companies, we’ve discovered that tax relief companies help Americans in a variety of ways:

  • provide guidance on audits
  • help set up payment agreements with the IRS
  • help get current on any unfilled tax returns 
  • some may be able to stop potential penalties such as wage garnishments

Most importantly, they pause the stress of dealing with the IRS - Typically any case submitted to the IRS takes months (or years) to review.  While waiting for their response, the IRS typically suspends any collection activities, and will often life wage garnishments, as is the case with an Offer in Compromise submission.

Our #1 choice for tax debt relief is Optima Tax Relief.  Click here to set up a free consultation.

What to Watch Out for with Tax Relief Companies

Tax debt relief companies are a great resource. Tapping into years of expertise is can be valuable to your situation.

But it isn’t all sunshine and rainbows.

Even when you work with a legit company, you should be on the lookout for a few things.

credit knocks logo

IRS Writes Off Millions Yearly

See if you qualify for tax relief.  Get a free consultation with a tax relief expert to see if you qualify today.

It's quick, easy, and free.

1. Getting Help Comes at a Cost

Hiring a tax debt relief company isn’t cheap.

You might end up paying between $2,000 to $5,000 for their help.

I know what you’re thinking.

That’s a lot of money!

Before you write off the idea of hiring an expert, compare the cost to the fees and penalties the IRS can charge you.

In the end, getting professional help for your back taxes could be worth the price.

tax debt relief pros and cons

2. Results Might Take A While

While it’s true that a tax relief company can get quicker results, some issues might take a while.

If you don’t owe a huge amount and qualify for a payment plan or other tax relief option, your situation could be resolved instantly.

On the other hand…

Some tax situations can take months or years to sort out. 

Just keep one thing in mind.

It might be a long journey, but it could be longer if you do it on your own.

credit knocks logo

No Money to Pay the IRS?

Get a free consultation with a tax relief expert to see if you qualify for the Fresh Start.

It's quick, easy, and free.

3. Some Companies aren’t Trustworthy

You see it on the news all the time.

IRS scams that cost thousands of people millions of dollars.

When you need tax relief, not every company is reputable. And some are downright corrupt.

But we’ve done the investigating for you.

And we partner with some of the best tax relief companies out there.

Our top three are:

  1. Optima Tax Relief

  2. Anthem Tax Services

  3. Community Tax Relief

Optima Tax Relief is our #1 recommended service, but all three companies have an A+ rating with the Better Business Bureau (BBB).

Get a free second opinion!

Does Hiring a Professional for Tax Debt Makes Sense?

If you owe less than $10,000, it makes sense to try to deal with your tax debt on your own. But you don’t have to.

What if you’re not sure what steps to take? Or the idea of talking to the IRS intimidates you?

There’s just one answer.

Hire a professional to manage your tax debt.

Working with a tax relief company makes sense. Not only do they negotiate with the IRS, but they can help to minimize your penalties and get you set up on the right repayment plan.

Get a free second opinion!


amy beardsley

By Amy Beardsley

Amy is a personal finance expert and freelance writer and owner of Early Morning Money, She has bachelor degrees in business administration and legal studies, and her work has been featured on The Huffington Post, Money Tips, and many other personal finance publications. 


Leave a Reply

Your email address will not be published. Required fields are marked

  1. It’s great to learn that a tax relief company can set up payments with the IRS. My brother is wanting to start a small company soon and he told me that he isn’t looking forward to dealing with the IRS. I’ll be sure to tell him to hire a tax relief company to do work with the IRS for his business.

    1. Hello Rick,
      Thanks for your comment. Hopefully your brother doesn’t end up owing money to the IRS, but if he does, yes, these companies are a big help!

  2. My husband is thinking about how to improve his business efficiency, and we are looking for advice. I loved that you mentioned a tax preparer can provide you with a free consultation to answer all your questions before you hire him. I will let him know about your recommendations to understand the benefits of hiring a tax preparer to help him.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}