So you are someone that has fallen behind with the IRS to the tune of now $35,000. You drive your car a lot and heard a nice radio ad - talking about settling your debt with them. You call them up. A sales consultant asks you a few questions - what do you owe? are all of your tax returns filed?
Your consultant quotes you a fee of $4000 to settle your debt with the IRS.
Ok. Stop there. Freeze frame.
So if you are going to pay someone $4000 to resolve your tax problem - the only way you are going to be satisfied with the outcome is if you are going to make a settlement with the IRS? Right? Well you're darned straight you should. But can they really guarantee that result? Realistically what should $4000 of tax resolution buy you? Read more here: $4000 of Tax Resolution - a Big Plate.
Here's a few more warning signs:
1. Does the tax relief company - have licensed tax professionals on their web page? If they don't - walk away. You need to protect yourself by knowing who is ethically bound to good a job for you. Their names and licenses if possible should be clear to you.
2. Has the company been in business since 2005 or longer? Sorry newbies - but with a high closure rate of tax relief companies you can easily find a reliable organization with that kind of experience.
3. Do they have a Better Business Bureau record? That should be mandatory. You can find the company's true start date - regardless of what they tell you - at the BBB - and their rating as well - shoot for A or A +.