In the six years of the Tax Problem Resolution Blog -- we have mused about the usefulness of paying a tax professional for representation on a tax issue -- when it can be of great value and when it might just be a huge waste of time and money. On TV and radio - the sales pitch for tax representation is a combination of FEAR and SAVING YOU MONEY on your tax debt (settling your debt for pennies on the dollar). From our perspective -- tax representation has two distinct values:

1. Expertise. (Which might mean saving money thru settlement (OIC) or other methodologies).

2. Reducing Hassle.

For some clients - the hassle factor, e.g., staying on hold with the IRS, setting deadlines, avoiding levies - is the reason paying a tax professional makes sense. They value their time and don't want to deal with the IRS in their spare hours.

For others - who have complex tax problems or who hiring an expert might mean the difference between paying tens of thousands of $$$ OR Not.

But let's be candid - if you have a back tax issue - and the result of negotiations is going to be a PAYMENT PLAN and NOT an Offer in Compromise -- then hiring a tax professional is to save hassle. And for that reason in many cases - you might be better off - value-wise - NOT hiring a tax professional.

A few years back we wrote a piece 7 Reasons to Pay for Tax Representation to further illustrate these points.

Talk with a tax expert for free (888) 282-4697

Registered members of the National Association of Enrolled Agents.