Hire a pro to settle your tax debt

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  • Community tax is a full-service tax firm specializing in helping individuals resolve their federal and state tax debts.
  • The initial consultation is free, but the overall cost of services ranges from $1,750 to $3,275.
  • Community tax is a great option for people who may qualify for debt reduction due to financial hardship.

Tax debt can follow you for years. With the added interest and penalty charges, a balance can quickly snowball.

This is why tax resolution companies exist. For a fee, they can assess your debt situation, investigate your payment or forgiveness options, and submit any necessary documentation to the IRS or your state government agency.

Insider’s Featured Tax Software

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Such a company is Community tax. Since its inception in 2010, it has helped clients settle a total of $794 million in tax debt.

Here’s what the community tax can help and how much it costs.

If you owe a large amount of back taxes and are struggling to pay, need to file previous years’ tax returns, or are about to have your wages seized or assets seized for unpaid taxes, it’s a good idea to contact a CPA, tax attorney, or enrolled agent who has experience working with government tax agencies. Community Tax employs several professionals with these credentials.

Community Tax can help you decipher tax notices, decide which IRS or state payment program is right for you, collect and organize your financial documents, and present your case to the government.

Community tax is a Chicago-based, full-service tax firm that specializes in helping taxpayers across the United States settle their federal and state debts. The company has an A+ rating with the Better Business Bureau and an average rating of 4.38 out of 5.

It is also an IRS-approved continuing education provider, which means it is licensed to provide training courses for enrolled agents (the highest degree awarded by the IRS).

There are three fee stages for working with Community Tax.

Consulting: Free. A case manager will familiarize themselves with your situation and explain the possible paths.

Survey: $250 to $275. If you agree to hire Community Tax, they will perform a tax investigation in which they will review your IRS tax transcripts and recommend the best solution. Recommendations may include candidacy for one of the various types of installment agreements, an offer in compromise or currently uncollectible status, and the preparation and filing of tax returns. If you are not satisfied with the recommendations, Community Tax will refund your fees.

Resolution: $1,500 to $3,000. The final step is to gather evidence and submit a proposal to the IRS or state government on your behalf. Fees vary depending on the complexity of your situation.

From start to finish, the average client works with Community Tax for three to five months.

What is tax resolution?

A tax relief company will not pay your debts for you. Rather, it will give you access to online resources and professionals who can help you get organized and figure out how to pay your debt over time or settle less than you owe if you’re in financial difficulty.

You do not need to use a tax resolution company to settle your tax debt. The IRS outlines the available payment plans on its website, and free advice is available via taxpayer defense servicealthough offices are currently closed due to the pandemic and phone lines are often overwhelmed.

However, it may be worth working with a tax resolution firm if you are pressed for time, need professional representation, or are overwhelmed with debt. You will still need to provide documentation to the company to help them assess your situation, but the time you spend on this could be significantly reduced.

In most cases, the professionals who work for tax resolution companies have many years of experience negotiating with the IRS and state agencies, and may be able to get a better deal than you can. could by yourself.

Is tax resolution a good idea?

If you don’t have the money to pay for tax resolution services, it’s probably not worth increasing your debt.

That said, the IRS or your state agency will continue to hunt you down for unpaid taxes. If you’re struggling to find a way to pay or get approved for a tax relief program, a tax resolution firm can help you build a compelling case if you don’t have the time. energy or knowledge to do it yourself.

Can I trust tax resolution companies?

It’s always good to be vigilant when dealing with a company that claims to help you settle your debt. Often these businesses can get away with overcharging their customers because they are in dire straits and need help.

A Better Business Bureau Accreditation and high rating are a good sign that a tax resolution firm is trustworthy, but it doesn’t have to be. Ultimately, the best companies have qualified professionals on staff, are upfront about their pricing, and honest about possible solutions for your situation. They will also clearly know whether or not you can benefit from their services before requesting payment.

About Sonia Martinez

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