Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Tax Debt Help and other Tax Relief topics.
DebtHelp.com Tip: Many times it is worth your while to have a tax debt professional help you with your tax debt situation. They are trained to know and understand the IRS tax law. Plus, they can provide insight into how best resolve your tax debt situation to your benefit. If you decide to meet a professional to assist you with your tax debt situation, there are a variety of options for you to choose from.
Tax Debt counseling firms. In addition to a variety of other debt counseling services, debt-counseling firms can be involved in tax debt areas. Many clients need help with their tax debt and do not know where to turn. Tax debt counseling firms can help set up installment agreements, tax resolution programs, and provide assistance in many areas involving tax debt. In addition to tax debt assistance, some of these firms offer consultations, online and offline libraries, and tax insight to help their clients. Debthelp.com is one such popular online firm helping customers alleviate their tax debt problems.
Tax Resolution Firms. These firms claim to get you out of your IRS debt by having you pay “Pennies on the Dollar.” Technically speaking, this is the term used by the Offer in Compromise IRS tax resolution program. Just be certain when you are interested in one of these firms, you check their credentials thoroughly. Many times the owners are Certified Public Accountants and Tax debt attorneys. These individuals must be licensed to practice in front of the IRS. These firms deal only with tax resolution issues.
Certified Public Accountants (CPA). These individuals are well-known for understanding the federal and state tax laws while conveying this knowledge to clients. They also can help you with tax resolution matters. Part of their professional responsibilities include dealing with the IRS and state government regarding tax issues.
Tax Debt Attorneys. Probably the most knowledgeable about tax resolution matters is a professional found in the attorney field. Many attorneys specialize in tax resolution situations. Otherwise known as a Tax Attorney, they specialize in various areas of tax that deal with their client's troubled tax situation. To be proficient, make certain the tax debt attorney you choose is licensed to practice in front of the IRS. This is a necessity for when you are facing advanced IRS collection processes. Tax attorneys usually have the JD designation and years of study. When you are checking around your area for a competent tax debt attorney, be certain to ask if they specialize in the area of tax resolution. Some Tax Attorneys do not. Check around to see what is offered in your local area. Also call your State Bar Association. This is a great place for both attorney referrals and licensing verification.
Enrolled Agents. Enrolled Agents are trained and certified in the IRS Tax Code. They are the CPA's of the IRS, in simple terms. They can also help you with your tax debt needs. Sometimes upon retiring from the IRS, individuals open up private practices. Look for referrals through networking, the IRS office, and your local phone directory.
During your process of choosing a tax debt professional there are some things you need to do: