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Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Are any of these IRS tax debt relief outfits legit?
Posted by:
Not A Deadbeat
()
Date: May 30, 2017 11:32AM
I owe just under $9000 to the IRS. It's from 2013. I have been shoving it aside because they haven't been aggressively seeking payment. But Ive decided to see if I can cut a deal and get this behind me.
I have read reviews of companies like Optima and it seems people figured out they didn't do anything an individual couldn't do themselves.....but incurred yet another debt to them. I would prefer to just avoid that.
Should I just write a letter to the IRS explaining my situation and try to deal with them direct? Or hire a lawyer.......and incur yet another debt? I have been filing my taxes and paid as well as received refunds for over 25 years, so this is my first adverse situation with the IRS.
Suggestions?
I have read reviews of companies like Optima and it seems people figured out they didn't do anything an individual couldn't do themselves.....but incurred yet another debt to them. I would prefer to just avoid that.
Should I just write a letter to the IRS explaining my situation and try to deal with them direct? Or hire a lawyer.......and incur yet another debt? I have been filing my taxes and paid as well as received refunds for over 25 years, so this is my first adverse situation with the IRS.
Suggestions?
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
fork it over
()
Date: May 30, 2017 12:04PM
I'd just pay it as soon as possible before you incur even more penalties. I'm not sure what kind of deal you think you can cut but i guarantee they're not going to forgive any part of what you owe. they know you earned the money and how much you owe, they're not going to budge one bit on that. you won't talk to anyone there who can negotiate or 'cut a deal'.
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
BTDTGTTS
()
Date: May 30, 2017 12:14PM
They're all expensive.
They will make grand promises of how you don't have to pay all that money to the government, but those promises usually are empty. Unless you are in almost abejct poverty, or, are earning minimum wage and have no assets, those promises are almost always empty.
Sometimes, you can write off what you pay them, sometimes, you can't. Consult a tax professional to be sure.
If you haven't filed in a number of years, sometimes they can help you get together the past non-filed returns. The cost is high, but at least you can come up with the non-filed returns.
They usually are pretty good negotiating with the states, because the agents of the states seem to have greater flexibility to make deals. The Feds, on the other hand, have procedures, formulas and standards that are strictly delineated and that give the agents little, if any, wiggle room.
If you are afraid of the IRSter Bunny, you might find them helpful when it comes to making arrangements to pay, but, truthfully, those guys at the IRS aren't as bad as their reputation.
I'd guess in your situation, if you don't owe the state anything and only the Feds, I'd talk to the IRS myself and ask them how you can make arrangements to pay. One caveat is that when there is that much money involved, often the IRS files a tax lien. The payment agreement that you make with them will state that they will file the lien, but will suspend enforcement of it as long as you make the payments on time. A tax lien on your credit record es no bueno.
At some point, though, the IRS will come after you for its money. At that point, it will file the lien, anyhow.
They will make grand promises of how you don't have to pay all that money to the government, but those promises usually are empty. Unless you are in almost abejct poverty, or, are earning minimum wage and have no assets, those promises are almost always empty.
Sometimes, you can write off what you pay them, sometimes, you can't. Consult a tax professional to be sure.
If you haven't filed in a number of years, sometimes they can help you get together the past non-filed returns. The cost is high, but at least you can come up with the non-filed returns.
They usually are pretty good negotiating with the states, because the agents of the states seem to have greater flexibility to make deals. The Feds, on the other hand, have procedures, formulas and standards that are strictly delineated and that give the agents little, if any, wiggle room.
If you are afraid of the IRSter Bunny, you might find them helpful when it comes to making arrangements to pay, but, truthfully, those guys at the IRS aren't as bad as their reputation.
I'd guess in your situation, if you don't owe the state anything and only the Feds, I'd talk to the IRS myself and ask them how you can make arrangements to pay. One caveat is that when there is that much money involved, often the IRS files a tax lien. The payment agreement that you make with them will state that they will file the lien, but will suspend enforcement of it as long as you make the payments on time. A tax lien on your credit record es no bueno.
At some point, though, the IRS will come after you for its money. At that point, it will file the lien, anyhow.
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
Mr Taxman
()
Date: May 30, 2017 12:40PM
There are statue of limitations on some collections of State taxes. I think it is 10 years in VA. There is no statue of limitations on Federal taxes.
There are some programs where if you owe $10,000 you can get some forgiveness. Also every now and then VA does "tax amnesty." During tax amnesty sometimes you can file old returns without any penalties.
In general, that state and feds want the taxes to paid, not the penalties.
In VA after something like 7 years VA turns the tax debts over to private collection firms that will then lien your assets and bank accounts. The debt collectors will also try to seize any money in bank accounts.
As for the tax liens showing up on credit reports, usually tax liens will not show on credit reports.
There are some programs where if you owe $10,000 you can get some forgiveness. Also every now and then VA does "tax amnesty." During tax amnesty sometimes you can file old returns without any penalties.
In general, that state and feds want the taxes to paid, not the penalties.
In VA after something like 7 years VA turns the tax debts over to private collection firms that will then lien your assets and bank accounts. The debt collectors will also try to seize any money in bank accounts.
As for the tax liens showing up on credit reports, usually tax liens will not show on credit reports.
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
hplu3
()
Date: May 30, 2017 12:44PM
Tax relief is like car repair. You can do it yourself. The question is whether it is wise to do so.
Most offers in compromise are rejected. The usual reason for rejection is that the offer amount is too low. The IRS will take into consideration the equity in your home, the cash in your bank and brokerage accounts, the amount of your income and the funds in your retirement account. Most successful offers will require the taxpayer to borrow money, enter into an installment agreement or both. People with significant income and/or assets do settle for pennies on the dollar, but those are the exceptions. All of this is going to be true even if you are dealing with a legitimate tax debt relief company. What legitimate companies do is work with the taxpayer to come up with a settlement arrangement the IRS is more likely to accept, and to put together an offer that is well documented, increasing the likelihood it will be accepted.
If you use a tax debt relief company, legitimate or not, you will be paying their fee on top of whatever the amount is the IRS will require you to pay. You don't say whether $9,000 is your total tax debt or just the principal due. You are likely going to pay at least $2,000 to $3,000 to a tax debt relief company to settle your tax debt. That fee could instead be used to help fund your offer, or to help pay down your debt.
If you are hiring a lawyer or an accountant to deal with the tax problem, they will be doing the same work as a tax debt relief company does. Legitimate tax debt relief companies will use lawyers, accountants and former IRS collections officers to do the work.
Most offers in compromise are rejected. The usual reason for rejection is that the offer amount is too low. The IRS will take into consideration the equity in your home, the cash in your bank and brokerage accounts, the amount of your income and the funds in your retirement account. Most successful offers will require the taxpayer to borrow money, enter into an installment agreement or both. People with significant income and/or assets do settle for pennies on the dollar, but those are the exceptions. All of this is going to be true even if you are dealing with a legitimate tax debt relief company. What legitimate companies do is work with the taxpayer to come up with a settlement arrangement the IRS is more likely to accept, and to put together an offer that is well documented, increasing the likelihood it will be accepted.
If you use a tax debt relief company, legitimate or not, you will be paying their fee on top of whatever the amount is the IRS will require you to pay. You don't say whether $9,000 is your total tax debt or just the principal due. You are likely going to pay at least $2,000 to $3,000 to a tax debt relief company to settle your tax debt. That fee could instead be used to help fund your offer, or to help pay down your debt.
If you are hiring a lawyer or an accountant to deal with the tax problem, they will be doing the same work as a tax debt relief company does. Legitimate tax debt relief companies will use lawyers, accountants and former IRS collections officers to do the work.
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
Expensive Tax Lawyers
()
Date: May 30, 2017 12:53PM
A friend of mine worked for an HVAC company and didn't pay taxes for years. He went to a lawyer after he caught. The lawyer actually ended up getting him paid money from the state because of his income level.
Mid level tax accounts are probably not going to be much benefit. As indicated above, you need to be in millions and willing to pay $10,000+ to a good tax accountant and lawyer before you get can get to live tax free like Trump.
Mid level tax accounts are probably not going to be much benefit. As indicated above, you need to be in millions and willing to pay $10,000+ to a good tax accountant and lawyer before you get can get to live tax free like Trump.
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
Fantom.Shitter
()
Date: May 31, 2017 08:26AM
Hire a lawyer, work out a payment plan and stick to the payment plan. In fact, if your employer offers direct deposit, you should be able to self-garnish your paycheck and have your monthly IRS payment sent directly to them.
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
AlbertEinstein
()
Date: May 31, 2017 08:40AM
In short; no.
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
Al Sharpton
()
Date: May 31, 2017 11:16AM
Before you make any agreement with the IRS I would hire an accountant to make sure you owe what the IRS says you owe.
Nobody in their right mind would take the IRS word for anything!
Nobody in their right mind would take the IRS word for anything!
Re: Are any of these IRS tax debt relief outfits legit?
Posted by:
CPA
()
Date: May 31, 2017 01:17PM
CALL IRS AND SET UP A PAYMENT PLAN.
OWING (ONLY) $9K YOU CAN PROBABLY GET A PAYBACK TERM OF 36 TO 60 MONTHS ($250 MO. / $150 MO. PAYMENT.
DON'T MISS ANY PAYMENTS.
THEY PROBABLY WON'T GIVE YOU AN O.I.C. (OFFER IN COMPROMISE)
Attachments:
OWING (ONLY) $9K YOU CAN PROBABLY GET A PAYBACK TERM OF 36 TO 60 MONTHS ($250 MO. / $150 MO. PAYMENT.
DON'T MISS ANY PAYMENTS.
THEY PROBABLY WON'T GIVE YOU AN O.I.C. (OFFER IN COMPROMISE)
Attachments: