Tax relief, also known as tax exemption, pertains to the reduction of the amount you owe to the Internal Revenue Service or IRS. This can be done through the allowable deduction for pension contributions as well as temporary incentives.
At an individual level, tax relief comes in the form of deductions according to the taxpayer’s marginal tax bracket and annual income. On the other hand, there’s a tax credit for businesses, which provides more savings for an entity. It’s applied to the amount owed by the organization after deductions have been made on the taxable income.
While this option is great for reducing an individual or organization’s tax liability, identifying the forms that you need to file and finding the exemptions that apply to you can be confusing. Fortunately, there are companies that provide tax relief help to make your life more convenient.
If you’re looking for a company that provides this service, here are the factors that you should consider:
- Staff Credentials
The tax relief company you hire should have licensed tax attorneys on board. These specialists studied the ins and outs of this particular body of law, so they are equipped with the knowledge to help you find the areas where you can get tax cuts. The agency should also have enrolled agents or Certified Public Accountants (CPAs) that can legally represent you before the IRS.
Moreover, research and make sure that their claims are legit. Tax relief companies are seen in a negative light because some agencies scam their clients, which affect the entire industry.
Some may assert that the attorneys in their staff act as consultants while others claim to be linked to a law firm. You can only find out if they’re telling the truth if you dig deep into their company background. There’s still reliable providers that offer an extensive range of services, though, so don’t lump all agencies together as frauds.
These are the steps that you can take to review the company:
- Check Their Website – Visit the tax relief agency’s website and find out how many attorneys they have on their staff.
- Get the Attorney Names – List their names and get a copy of their resumes, if the document is published on the website.
- Investigate their Credentials – Typically, most attorneys include the school where they received the degree along with other educational information. Cross-reference the data with the university or bar association’s website to verify their claims.
Similar to other industries, tax relief companies have trade associations that uphold the standards of the community. They help educate and train each other to keep up quality practices. The service provider you hire should invest in third-party accreditation and endorsements.
Tax relief firms should:
- Be IRS-approved providers.
- Be members of the National Association of Tax Professionals
- Have enrolled agents that are certified by the National Association of Enrolled Agents.
Some companies choose to focus on a few key areas of specialization. This may be because these agencies prioritize faster tax relief strategies that provide higher profit margins.
Others, though, offer an extensive range of services. The number of processes these providers can handle doesn’t really matter as much as the quality they give and the reliability of their staff.
Most tax relief companies offer these services:
- Offer in Compromise – They negotiate settlements for less than the full amount payable to the IRS.
- Administrative Appeals – The organization gives you the option to have your tax liability reviewed if you disagree with the assessment of the IRS.
- Collection Appeal – This program lets you question a tax assessment without the need to present yourself in court.
- Partial Pay Installment Agreement – It’s a specific type of legal setup where you pay less than the full amount owed to the IRS.
- IRS Audit Defense – One of the times that your business needs a lawyer is during tax audits and filing. A tax relief company can provide expert advice during this process.
- Payroll Tax Negotiation – The tax relief company can help you negotiate with the IRS for the penalties imposed on your business regarding the payroll.
Tax relief allows you to reduce the amount of tax you owe to the government through special exemptions and incentives. You can enlist the help of a company that provides this service. Just make sure you check the credentials of their staff and whether they’re affiliated and accredited by third-party associations that endorse their credibility. Lastly, view the services that they offer and check if it caters to your needs.