1. Summary
  2. Accreditation
  3. Requirement of Minimum Tax Debt
  4. Common factors a Tax Relief Company should focus
  5. Types of Tax Debt Relief Programs


When you are stressed about a tax debt, it will be extraordinarily tough to avoid tax relief scams. Finding honoured tax relief corporations will be a challenge, however many factors could assist you to establish legitimate tax debt relief corporations. We’ve worn the market to search out the simplest tax relief corporations, however, it is often a decent plan to try to do some analysis on your victimization equivalent criteria that we tend to do.


According to the Federal Trade Commission (FTC), only tax professionals can work on your behalf with the IRS. Tax professionals include:

  • Tax attorneys
  • Certified public accountants (CPAs)
  • Enrolled agents

In addition to operating with certified tax professionals, search for tax debt relief corporations that are members of tax-related associations or boards, such as:

  • The National Association of Tax Professionals (NATP)
  • The National Association of Enrolledd Agents (NAEA)
  • The Yankee Society of Tax Problem Solvers (ASTPS)
  • The American Institute of Certified Public Accountants (AICPA)

While not necessary for operations, these certifications indicate that the tax relief company takes its job seriously and values its name within the tax relief trade.

Requirement of Minimum Tax Debt

Many federal and state tax relief services need a minimum debt quantity before taking up new customers. This minimum tax debt helps keep potential customers from paying a lot of for tax relief solutions than they get reciprocally.

The current trade normal could be a minimum tax debt of $10,000. Since no honoured tax relief company can claim to urge eliminate the whole debt, it’s probably that you will solely get a little quantity of debt relief. If you are paying $2,000 for the tax relief service, the possibility is that you simply will not see any distinction in your overall monetary scenario.

Most tax relief companies can state their minimum debt level demand on their website or discuss it throughout the free consultation to work out if you are eligible for relief for state or federal taxes.

Common factors a Tax Relief Company should focus

Tax Settlement

The main challenge facing several taxpayers, particularly little business homeowners and sole proprietors, is finding the money to pay their IRS settlement on time.

Tax relief corporations could also be ready to assist you to reach an instalment agreement with the IRS which will build paying off your tax debt a lot of manageable.

Wage Garnishments

One way the IRS will get cash from you is thru wage garnishments, wherever it de jure withholds funds from your payroll check to pay off your debt.

Tax Liens

While credit bureaus now do not embrace tax liens on your credit report, such liens will still have a large impact on your monetary eudemonia by limiting your ability to sell your assets.

Essentially, a lien attaches to all or any of your assets, giving the IRS 1st claim if it seizes the assets because of non-payment of your tax debt through tax levies. Tax liens stay in situ till you pay your bill or the statute of limitations on the debt expires.

Back Taxes

Back taxes are any unpaid taxes for a specific year. You’ll incur back taxes by failing to pay your taxes, failing to file a come, not paying associated penalties, and even failing to report all of your financial gain for the tax year.

Back taxes can incur penalties and interest each year, therefore it’s in your best interest to pay them off as presently as doable, either through instalment agreements or as payment.

Types of Tax Debt Relief Programs


A supply-in-compromise could be an answer wherever you offer a compromise to settle your tax debt for a lower quantity than what you owe. If you’ll demonstrate that paying off the total tax debt would cause you monetary hardship or that you are not in a very position to pay it off in the slightest who offer-in-compromise will build it doable for you to still pay off the tax debt you’ll afford.

Innocent Spouse Relief

In some instances, you’ll not be the one accountable for the acquisition of the tax debt. If your mate or former mate is accountable for the tax debt, you’ll apply for innocent mate relief.

When you apply for innocent mate relief, the IRS can investigate true and appraise the circumstances behind the tax debt. If it determines that paying the debt would be unfair for you which is your spouse’s responsibility instead, it’ll take away your liability for the tax debt.

Installment Agreement

An installment agreement spreads out your IRS tax debt over many monthly payments rather than a one-time payment. An installment agreement could be a good way to scale back the monetary burden of an oversized lump-sum payment, however, remember that installment agreements don’t shield you from having to pay interest, which means that you will eventually pay over your initial tax debt quantity.

Penalty Abatement

The IRS uses hefty penalties to penalize people WHO do not pay their taxes on time or who misreport their liabilities. The 3 main penalties the IRS uses include:

  • Failure to pay: the penalty for not paying taxes on time
  • Failure to file: the penalty for not filing a legal instrument on time
  • Failure to deposit: the penalty for businesses that do not pay employment taxes on time