Tax relief services in Los Angeles, CA, are becoming increasingly popular as more individuals and businesses are finding ways to minimize their tax liability. Normally, it is recommended that you don’t need to hire tax relief services for tax debt anywhere under the psychological threshold of $10,000, as such tax debts are easier to settle on one’s own. However, if you or your business sees tax debt piling up to a multiplier of this figure, you may be in an urgent need to hire tax relief services in Los Angeles, CA, or wherever you or your business is based.
But how exactly does a tax relief service provider help you in gaining much-needed relief from the tax authorities in the United States? Or, more importantly, what should you expect from a tax relief company? The following points may be helpful in this regard, and must be considered in mind when hiring tax relief services.
Things to Consider Before Hiring Tax Relief Services in Los Angeles, CA
1: Free Tax Consultation:
Most service providers offer free tax consultation in the initial stage. The process may take anywhere from 20 minutes to an hour, and may be conducted face-to-face or over the phone. In either case, a tax professional will ask about your tax history, past and recent issues with the tax authorities and other important information, such as your financial position. In most cases, they will also discuss different options at length.
This step is also helpful for you in assessing the professionalism, knowledge and commitment of the service provider. Also, make sure that the tax professional has expertise in the specific area, for example, when your case pertains to state authorities as opposed to the federal authorities.
2: Signing an 8821 Form:
Once you have hired a service provider, it is time to sign the Tax Information Authorization or 8821 form. By signing this, you are authorizing your tax relief service provider to check your tax compliance history, and to ascertain specific service that you may require in the near future to gain maximum tax relief.
It is also important for your tax relief service provider to be fully aware of your compliance status since the IRS generally doesn’t work on tax relief applications unless and until all previous returns are duly filed.
3: The Settlement Process:
After reviewing your individual tax situation in detail, the tax relief company (or an individual professional you hired) will present you with different tax relief programs by the relevant authorities (generally the IRS), along with possible outcomes and a schedule of fees for the services. With further discussion, you may direct the service provider to pursue a particular relief program. Next, your case is assigned to an agent or a team.
You are also required to sign a Limited Power of Attorney or form 2848, which enables the service provider to directly deal with relevant authorities on your behalf.
An Installment Agreement, an Offer in Compromise, Audit Defense, Hardship Status Request, Partial Payment Installment Agreement and Identity Theft Victim Assistance are some of the common relief programs that may be available, depending upon your individual circumstances.
Making the Payment:
Once a deal is reached between your service provider (acting on your behalf) and the IRS, you are required to make the agreed payment in a stipulated time frame to get into good standing with the authorities. This good standing lasts as long as you continue to file returns and make payments in due time in the future.
Remember that the whole process, at times, can be very exhausting and may take up to one year from initiation to making the payment.
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.