The tax deadline has come and gone. Hopefully, like most people, you filed your return on time, as IRS penalties can be more severe for non-filing than for non-payment. However, if you have unpaid tax, that does not mean that you can relax. It’s time to take control of your situation.
If you owe a relatively small amount (e.g. less than $10,000) and have some assets, disposable income, or borrowing potential, then there are plenty of options that the IRS provides to help you resolve your tax debt yourself. Some of these are explained in the tax resolutions section of our website.
On the other hand, if you owe lots or have no way of paying what you do owe, even over time, then you should seek the help the help of a tax resolution specialist that has expertise negotiating reasonable settlements with the IRS and State taxing authorities. The next challenge is how to choose a reputable company that can really help – as with most industries, there are both good and bad tax resolution companies. Here are a few do’s and don’ts…
- Do check references. You want to work with a company that has successfully resolved other cases similar to your own, perhaps even in your own state or city. Check out some of our successful resolutions. You may even want to contact us and organize phone references.
- Do call Dunn & Bradstreet. You want to ensure that you’re working with a stable company, not one that will disappear tomorrow. You can check a company’s financial stability at dnb.com. We have the best record in our industry.
- Do check the Better Business Bureau. You want to work with a company that has a sterling record with the Better Business Bureau (BBB), so check it out. Our home state is Colorado, so you can check our record by calling 303-758-2100 or going to our record at denverbbb.org. Do beware of companies that are listed with the BBB in one state, but operate out of another in order to try to conceal complaints.
- Power of Attorney. In order to represent you in front of the IRS, you will need to sign a Power of Attorney. However, DO NOT sign a blank Power of Attorney; you should only do this after you’ve had a chance to fully review the completed document, and after you know exactly who will be representing you.
- Beware of False Promises. It is critical that you’re not taken in by fake guarantees that are never backed up in the fine print, or the “pennies on the dollar” scams that are frequently advertised. The latter refer to the Offer in Compromise (OIC) program, where you can settle your tax debt for less than you owe. However, this program is only for taxpayers that cannot pay their tax debt, even over time – only a small percentage of offers are accepted. This might be the best option for you, but make sure you know the facts before entrusting your financial future to this type of company.
There are plenty of good tax resolution companies, but equally plenty of bad ones. Do your homework and make sure you’re working with a reputable firm