So, you’ve got some debt. Tax debt, to be specific.

Or, perhaps you’ve recently learned that the IRS has placed a tax lien on your home. Maybe the IRS has begun garnishing your wages. Or perhaps your tax bill was simply larger than you expected this year—so you weren’t able to pay it on time.

However you got involved with the IRS, you’re probably feeling stressed, overwhelmed, and worried.

And you’re not alone. Each year, thousands and thousands of taxpayers find themselves in hot water with the IRS—and the light at the end of the tunnel always feels faint.

So, what steps do you take? Well, you’ve probably seen some commercials from companies pitching “the best tax relief” in the industry. Unfortunately, those commercials are usually short on details and long on scare tactics. How do tax relief companies work, anyway?

When you’re seeking tax relief, details are exactly what you need.

We’ll be the first ones to admit that “tax relief” is a pretty broad term. What is a tax relief company, and what does a tax relief company actually do? Do tax relief companies erase your debt? When do you know you actually need to hire a tax relief company? And what separates the good ones from the bad ones?

FAQs about Tax Relief Companies

You’ve got questions, and we’ve got answers.

If you’re in need of tax relief, you deserve to know exactly what to look for, expect, and avoid! So today, we’re here to answer a few of the most frequently asked questions about tax relief companies.

What Is a Tax Relief Company?

Typically, a tax relief company (also known by terms such as “tax mediation service” and others) works with clients to solve one or more issues regarding tax debt. Most tax relief companies also help clients with IRS audits, as well!

There are a number of methods that tax relief companies take to help their clients resolve their tax debt issues:

1. Reviewing or filing old tax returns to lower a client’s debt.
2. Taking over communication with the IRS to save the client from overwhelming communications.
3. Helping negotiate payment agreements with the IRS.
4. Avoiding or completely stopping penalties such as wage garnishments.

A reputable tax relief company will have the legal and professional know-how to advocate on your behalf with the IRS. Not only will a good tax relief company work to find solutions to your tax debt, but also they’ll shoulder some of the immense burden that comes with tax debt.

Do Tax Relief Companies Erase My Debt?

As a tax mediation and tax relief company, we wish we could say yes here. But unfortunately, every client’s tax debt is different, and you should be wary of any tax relief company that promises to eliminate debt, interest, or penalties. With that said, tax relief companies can substantially reduce tax debt for many clients—and we have a ton of experience doing just that.

Especially in situations where numerous years’ worth of tax returns have not been filed, a reputable tax relief company can make a real difference and eliminate tens of thousands (and more!) in debt. Eliminating penalties and other garnishments can be a huge financial relief for those facing down enormous tax debts.

When Do I Need to Hire a Tax Relief Company?

Many opt to enlist a tax relief company long after they should, which can be disappointing in the long run. Tax relief companies can work wonders, but the sooner you bring them onto your financial team, the sooner you can benefit from their help—and the less likely you are to dig yourself into a giant hole of tax debt.

It’s usually a good idea to reach out for help when you’ve received a letter from the IRS outlining your debt. The fact of the matter is that most people aren’t tax attorneys and simply aren’t familiar with the majority of tax codes, deductions, and IRS penalty structures.

Additionally, if you suspect you may owe money to the IRS but just haven’t received a letter yet—or if you’ve evaded taxes and need to get back on the right path—it’s worth reaching out to talk to someone about your situation.

How Do I Pick the Right Tax Relief Company?

When choosing a tax relief company, you need to do your research and choose wisely.

Be wary of companies who promise, sight unseen, to completely eliminate your tax debt. Additionally, reviews are a dime a dozen—so check on multiple sites and look to see how the company engages with its clients and resolves concerns. Finally, experience in tax relief and mediation takes time and training. While your CPA may be able to understand your tax liability, it’s always best to hire a specialist.

Choosing Top Rated Tax Relief Companies

Finding a top rated tax relief company is daunting, but trust us—dealing with tax debt on your own is worse. Now that you understand how tax relief companies work, you can make a smart decision regarding your own debt and start your path to tax relief.

And of course, we’re always here to walk that path with you.