January 14, 2009
Can tax companies really reduce the amount of money you owe the IRS?
taeyyenom asked:
mY co-worker wants to retain a company, but i told her she might be better off paying the irs. so can they help you in reducing the amount of debt that you and how much do they charge?
mY co-worker wants to retain a company, but i told her she might be better off paying the irs. so can they help you in reducing the amount of debt that you and how much do they charge?
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Comments on Can tax companies really reduce the amount of money you owe the IRS? »
If you are talking about those guys on TV that promise that you will pay the IRS pennies on the dollar, run, don’t walk away from them.
There are ways to reduce the taxes due if you qualify to do so and there are folks out there that can help (I’m running about 4 cases right now).
Have your friend make some calls to tax professionals and ask if they deal in collection cases. If he/she qualifies, it can reduce the liability.
As for fees, it is not cheap, no matter what.
If a referral is needed, go to >find a tax professional – and input the city and state and see what comes up.
Helen, EA in PA
The ones that advertise on TV and Radio tend to be huge ripoffs. The only thing that they are good at is separating you from your money. Their fees start at about $4000 and go up from their.
You have to owe over $10,000 before the IRS will even consider a “settlement”. A settlement with the IRS is call an Offer in Compromise, or OIC for short. Have your friend go to IRS.gov and read up on them. The IRS says “No” over 80% of the time.
If your friend thinks she qualifies, call an EA or CPA in her local area and explain the situation.
It’s generally better to deal directly with the IRS. As others have noted, it’s rare to get an Offer-in Compromise approved, especially if there is any ability to pay, and even then it’s possible to do it yourself.
Have your co-worker call the IRS to discuss payment options. Once the tax has been paid, he or she might be eligible for an abatement of penalties.
No they can not, the person that owes is better off working directly with the IRS. If the balance owed is over $25K then download Form 9465 Installment Agreement Request and Form 433-F Collection Information Statement, if self employed also provide Form 433-B Collection information statement for business.
For balance of $24,999.00 and below divide the amount owed by 60 months and the result is the minimum monthly payment IRS will is accept.
Visit IRS website for more information on installment agreements. and payment options.