A good tax relief company offers their clients many benefits and can really help a taxpayer with major tax problems, however there are many bad tax relief companies out there that use shady tactics and do not give their clients the services they promised. It is important to pick one that will give you the best service for your dollar. Here are a few red flags to watch out for when looking for a tax relief company.
- Don’t offer a free consultation or free tax analysis: Many of the more reputable companies will offer this because they want to get to know your tax situation and financial situation before they take you on as a client. There are cases when a tax relief company would not be a good choice for a taxpayer. An ethical company will try to understand your situation before saying they can help you. Some companies rush to get you as a client before even knowing why you owe taxes and what your financial situation looks like.
- Promise an offer in compromise: An offer in compromise is a great tax settlement (not all firms offer it) that is only available to people who really deserve it. If the tax company promises you an offer in compromise settlement right away, you can turn your back and run. Acceptance rates are very low for this type of filing and even people that are good candidates regularly get denied, so therefore no tax professional can guarantee this type of settlement.
- You were contacted by the company through a cold call: Companies that use high pressure sales tactics to get clients typically don’t have good services to back up their claims. They will use hard sell tactics and pretty much say anything in order to get you as a client. Hiring a tax relief company should not be rushed and it would be best if you avoided a company with these types of marketing tactics.
- Watch out for large retainer fees: Some companies will charge large upfront fees before any services have been provided, this is not an industry norm. Sometimes they will require a small retainer fee in order to get started on the case but never a large portion of the total amount that will be owed.
- You feel rushed when talking to them: This can be a red flag and could mean that they are taking on too many clients and won’t allocate enough time to successfully work on your case. Sometimes it is a good sign when they are a bit busy because it can be a sign that they actually do offer good services and they are in demand, but sometimes they tend to get greedy and take on too many customers. Many times companies will get really busy during the latter part of tax season. If you know you have a problem it is better to contact a company before this time so they don’t try to rush your case.
- Bad Ratings Online: Many tax relief companies have done terribly with the better business bureau and other online complaint sites. Many top tax resolution companies actually have an F rating, which means there have been many unsatisfied clients and that company has not taken the appropriate actions in order to clear up these problems. It is a good idea to look at reviews and look for bad information written up on the company on sites such as rip off report or the BBB website.
Avoiding any of the above red flags can greatly increase your chance of finding a great tax relief company and help you avoid tax relief scam companies. Feel free to talk with multiple tax relief companies that offer a free consultation or tax analysis, you will start to get a good feel of which one will provide you the best service as long as you keep the things above in mind. Be sure to ask a lot of questions and move onto the next company if you don’t agree with the way they are handling your case.
If you would like a free tax consultation from us, please contact use by filling out the contact form or by calling the number on the site. Our tax professionals will give you a free tax analysis and an overview of what they feel they can do for you.