Business owners: find out how you can get up to $26,000 per employee with the Employee Retention Tax Credit.

Are Tax Resolution Companies Legitimate? 

Though many tax resolution companies are legitimate, others are not. The Federal Trade Commission (FTC) has identified some of the red flags that identify a tax resolution company as a scam. These include claims that the company has helped “thousands,” a promise to negotiate an IRS “offer in compromise” without looking at your specific situation, and a request for a substantial upfront fee. In contrast, a legitimate tax relief consultant will give you a full and fair disclosure of the assistance that they can provide you. 

If you owe a substantial amount of back taxes to the IRS or your situation is highly complex, you will be better served by a tax relief attorney rather than attempting to face the system on your own. Ayar Law provides a professional analysis of your circumstances and deliver a tailored resolution that minimizes your exposure. Our team helps individuals and businesses resolve their tax problems ethically and legitimately without the hype and exaggerated promises that tax resolution companies might make. 

How can an individual know if a tax resolution company is legitimate? 

As noted above, The U.S. Federal Trade Commission (FTC) regulates services that target unwitting consumers, such as illegitimate tax resolution companies. It publishes information on what consumers should look for to determine if a company is legitimate. Some of the red flags that the FTC has identified include the following: 

  • Representations that the company has helped thousands of people to completely eliminate their tax debt to get out of that debt for a very small percentage of the unpaid amount. 
  • Promises of their ability to negotiate an IRS “Offer In Compromise” (OIC) without even looking at your specific situation. 
  • Requests to pay a substantial upfront fee, and regular requests to pay additional fees for other services. 
  • Claims that they have never had a tax resolution denied.   
  • Attempts to discourage you from getting referrals or researching online reviews of the company.

If you ask directly for assurances that the company is legitimate, at a minimum, the company should willingly refer you to FTC information on tax scams and answer all of your questions with no equivocation. 

What services will a professional tax resolution attorney provide? 

A licensed and certified tax resolution lawyer will devote time to understand your circumstances and develop a strategic plan to resolve back tax problems. On your behalf, your lawyer might: 

  • Negotiate installment agreements for back tax payments that stop the accrual of late fees and penalties, stops efforts to place liens on your income or assets, and allow you to make affordable payments to eliminate your tax debt. 
  • If you qualify, negotiate a legitimate Offer In Compromise that acts as a full and final settlement of your IRS problems. 
  • Examine whether your debt can be characterized as “Currently Not Collectible” and explain the consequences of that term. 
  • Determine your eligibility for debt forgiveness under the IRS Fresh Start Initiative.

Schedule a Free, No Obligation Consultation to Resolve Your Unpaid Tax Issues  

Contact Ayar Law in Farmington Hills, Michigan, to consult directly with a licensed and certified tax attorney about the optimum way to deal with the IRS to resolve your unpaid tax problems. We will provide a thorough assessment of the services we can provide, how much those services will cost, and how your issues might be resolved.  

Your unpaid tax debts will continue to be an issue with your finances unless you make an effort to resolve them. Call our offices at your earliest opportunity before these issues overwhelm your business and family.