Owe Back Taxes to the IRS? The Pros and Cons of Using a Tax Resolution Service

Three of the most frightening words in the English language are Internal Revenue Service. Few government agencies can strike fear into the heart of citizens like the IRS, and the tax agency enjoys powers most parts of the government simply do not have.

Unlike those other government agencies, the IRS has the ability to garnish your wages, freeze your bank accounts and seize your property. If you owe money to the IRS, doing nothing is simply not an option.

But should you negotiate with the agency on your own, or is hiring a tax resolution expert the better choice?

As an expert Tax Resolution Firm ourselves, the team at James and Harris, CPAs encourages all readers facing a tax problem to contact us for a free consultation.

But lets dive into the pro’s and con’s of hiring a tax relief firm so you can decide for yourself.

The Benefits of a Tax Resolution Service

If you owe back taxes to the IRS, there are some definite benefits to hiring a tax resolution service. These companies exist for a reason, and they can provide a way out for taxpayers who feel overwhelmed by the whole process. Here are some of the biggest benefits of working with a tax resolution service.

1. You will not have to deal with the IRS directly. No one likes dealing with the IRS, and when you work with a tax resolution service, you will not have to. You interact solely with the tax resolution service, and they deal with the IRS on your behalf.
2. You gain years of expertise. The best tax resolution services are staffed with tax experts, men and women with a deep knowledge of the tax code and how it works. This specific expertise could be the key to getting the best deal, one that saves you money while avoiding the wrath of the IRS.
3. It could help you resolve your tax issues more quickly. Having an IRS problem hanging over your head is stressful and unpleasant, and the sooner you get it resolved, the better. Engaging with a tax resolution company could help you resolve your IRS problems faster, so you can get on with the rest of your life.
4. You could strike a better deal. Negotiating with the IRS on your own can be intimidating, and the tax agency may not offer you the best terms. Tax resolution services are used to dealing with the IRS, and they may be able to drive a better bargain.

The Potential Drawbacks of Tax Resolution

Working with a tax resolution service makes sense on many levels, and taxpayers can enjoy a number of important benefits in the process. Even so, there are some potential pitfalls to working with such a company, and you need to weigh the pros and cons yourself. Here are some of the possible drawbacks of working with a tax resolution company.

1. You will typically have to pay a fee. Nothing in life is free, including tax resolution services. You will generally need to pay a fee for these services. If you owe less than $10,000 then it might make more sense to handle the case on your own.
2. Not all companies are reputable. The world of tax resolution services can be a difficult one to negotiate, and not all services can deliver what they claim. It is important to do your homework and choose your tax resolution provider with care.
3. It can take time for your case to be resolved. While some tax problems can be resolved almost instantly, others could take months, maybe even years to work through. Whether you hire a tax resolution service or not, you need to be prepared for a long journey.
4. You will be giving up some control. When you hand your tax problems off to a third party, you also hand off control of your tax situation. This can also be liberating knowing that someone else has your back and their job is to help you find tax relief.

Whether you receive a big tax bill instead of the expected refund or owe thousands of dollars in back taxes from an audit, dealing with the IRS is no fun. The desire to hand that task off to an expert is certainly understandable, and in many cases, it is the best move you could make.

Now that you know the pros and cons of working with a tax resolution service, you can make the wise choice - and put your tax problems behind you.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, contact our firm in Jacksonville, FL, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.