When to Hire a Tax Relief Professional
Sep 16

When to Hire a Tax Relief Professional

Hiring a tax relief professional is certainly a personal decision. Many taxpayers opt to maintain control of their dealings with the IRS. The IRS supports your rights to do so. They offer tips for working through a variety of case events on their website. If you have a simple tax return or owe less than $10,000 in back taxes, you may not need the services of a tax relief professional.

However, most taxpayers can benefit from professional expertise. In fact, many experts recommend it if your tax returns are complex or you need to resolve back-tax debt.

Unfiled Tax Returns Call for Tax a Professional

Although the IRS probably won’t haul you off to jail for not filing your tax return, they may assess a penalty. If you have a balance due after the returns are prepared and filed, you can expect two penalties. The IRS calls them the failure-to-file penalty and the failure-to-pay penalty. The failure-to-file penalty is more costly than the failure-to-pay penalty. If the IRS assesses one or both of these penalties, experts advise consumers to consider hiring a tax relief professional.

The IRS explains that for most taxpayers, “the penalty can be as much as five percent of their unpaid taxes each month, up to a maximum of 25 percent.” The penalty for late payment is commonly 0.5 percent of taxpayers’ unpaid taxes per month. The IRS says, “It can build up to as much as 25 percent of their unpaid taxes.” Therefore, it’s prudent for taxpayers to file their unfiled tax returns as soon as possible, even if they can’t pay the bill right away.

Frequently, taxpayers find that once they miss a tax filing deadline, it becomes easier to miss subsequent years. This creates complications that call for a tax relief professional. For example, most average taxpayers aren’t familiar with the changes in the tax code from year to year. Every return must be prepared in relation to the specific tax code of the corresponding year.

Furthermore, many taxpayers have found that hiring someone to help with unfiled tax returns is a significant time saver. The Fiscal Times reports, “For taxpayers filing non-business returns, it took an average of eight hours to complete a 1040 last year.” Preparing tax returns for a multitude of years can be extremely time consuming, especially in comparison to the time it takes for a tax professional to complete the same task.

Offers in Compromise Crafted by a Tax Professional

Some confusion has been sewed into the fabric of society about tax relief in recent years. That’s mostly due to an abundance of ads promising a settlement for pennies on the dollar. The IRS does approve them in rare and special circumstances. Although, it’s not an option that’s available to most taxpayers.

The IRS says, “We generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.”  They analyze taxpayers’ ability to pay, income, expenses and assets. That helps them determine how much of the debt he or she will be able to pay. If the offer in compromise is the same or more than what the IRS thinks they can collect, they’re more likely to approve the offer.

However, if it’s less, you have an open bankruptcy proceeding, or you have unfiled tax returns, the offer will likely be rejected. Crafting an offer in compromise is an involved and precise task. Each case dictates what the proper offer should be. Hiring a tax relief professional can help to ensure that the offer is efficient for acceptance.

Lastly, the IRS cautions the taxpayer to understand the process for an offer in compromise review. They note the following:

  • Your non-refundable payments and fees [$186] are applied to the tax liability
  • A tax lien may be filed
  • Collection activities are often suspended
  • The legal assessment and collection periods are extended
  • The taxpayer expects to make all required payments associated with the offer
  • The taxpayer can stop making payments on an existing installment agreement
  • The offer is automatically accepted if the IRS doesn’t make a decision within two years of the date the IRS receives the offer.

Wage Garnishment Can be Resolved Quickly by a Tax Relief Professional

The sinking feeling of finding about a wage garnishment is one that no one should feel. But this is one of the many collection methods the IRS uses to collect back taxes. First, they send a notice to the taxpayer that informs them of their tax balance. This letter also demands payment by a specified deadline. If the payment isn’t made, they assess your finances to determine the best way to collect the debt.

If they determine that a wage garnishment is in order, they notify your employer of your status with the IRS. They then instruct them to withhold tax payments from your paychecks until the debt is paid or other payment arrangements are made. Your employer sends the withheld funds from your check to the IRS on your behalf. While this isn’t an ideal method of payment for the taxpayer, it’s often one of a few payment options available.

A tax relief professional can not only stop the wage garnishment, but also negotiate with the IRS. Reputable professionals strive for the lowest monthly installment agreement that you qualify for. In addition, a wage garnishment may be lifted if you can’t afford it. The IRS says, “If the levy is creating an immediate economic hardship, the levy may be released. A levy release does not mean you are exempt from paying the [tax] balance.”

The IRS will release the wage garnishment if one of the following applies:
  • The taxpayer pays off the whole balance.
  • The statute of limitations deadline has passed.
  • You arrange an agreeable payment plan with the IRS.
  • You’re unable to pay for basic needs because of the wage garnishment.

If you’re not sure if one of these events applies to you, seek advice from a reputable tax relief professional.

A Tax Relief Professional Handles Several Types of Cases 

  • Audits

    Audits are often complex processes. The IRS handles many of them via written correspondence, while they conduct others in-person. A reputable tax representative will handle communications with the IRS. They’ll also present the requested information to the IRS on your behalf. During an audit, the IRS can use whatever a taxpayer says in their determination. Complex industry lingo can be confusing, causing taxpayers to unwittingly say things that may indicate wrongdoing. A tax professional helps protect a taxpayer from unintended confusion.


  • Unpaid Payroll Taxes

    Individuals may be personally liable for their company’s unpaid payroll taxes. If you think you may be at risk, hire a tax relief professional to protect you from unnecessary tax assessments. He or she will also ensure the lowest possible tax liability.



  • Levies

    The IRS may use their right to levy your wages or bank accounts for tax debt collection. For more information on wage garnishments, see the section above. You have options if you’re unable to afford the levy. Options are also available if you’re willing to engage in another payment arrangement with the IRS. A tax professional can speed the release of a levy and negotiate the lowest possible payments.


  • Complex and/or Amended Tax Returns


  • Penalty Abatements

    Although the IRS assesses penalties all the time, they’re often reasonable about removing them. That is, of course, if there are special circumstances. The IRS offers the following examples:

    • Fire, casualty, natural disaster or other disturbances
    • Inability to obtain records
    • Death, serious illness, incapacitation or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family.
    • Other reasons which establishes that you used all ordinary business care and prudence to meet your Federal tax obligations but were nevertheless unable to do so

Why Tax Champions?

Tax Champions has over 35 years of experience with tax and tax relief cases. We’re proud of our reputation and invite you to see our A+ rating at the Better Business Bureau. You may also notice that we have no complaints. We negotiate on your behalf to resolve your debt for only your fair share of tax.

Contact us today for your free case review by a qualified tax relief professional at 800.518.8964. We’re available seven days a week during standard business and evening hours. Our friendly and knowledgeable staff will discuss your case. We’ll also present your options and make a recommendation. There’s no obligation to hire our firm, but if you do, we’ll immediately send you an engagement letter. This letter includes the services we discussed in the case review in writing.

If you prefer that we reach out to you, simply submit your contact information in the blue box on the right side of this page. We’ll contact you as soon as possible. We strive to meet and exceed the needs of our clients. We hope to earn your business for life.

Our 35 years of experience affords us an exceptional ability to negotiate on your behalf with the IRS. Contact us today and sleep better tonight knowing that you have the unique skill set of a knowledgeable and experienced tax relief professional on your side. We look forward to hearing from you.


[1] Here’s When You Should Hire a Tax Pro. (2016, March 21). Retrieved from //www.thefiscaltimes.com/2016/03/21/Here-s-When-You-Should-You-Hire-Tax-Pro

[2] Important Facts about Filing Late and Paying Penalties. (2019, June 28). Retrieved from //www.irs.gov/newsroom/important-facts-about-filing-late-and-paying-penalties

[3] Offer in Compromise. (2019, July 10). Retrieved from //www.irs.gov/payments/offer-in-compromise

[4] Penalty Relief Due to Reasonable Cause. (2019, March 19). Retrieved from //www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-reasonable-cause

[5] Tax Champions: Better Business Bureau® Profile. (n.d.). Retrieved from //www.bbb.org/us/ca/ventura/profile/tax-consultant/taxchampions-1236-92012281

[6] Wage Garnishment – Tax Champions: Tax Negotiation Services. (2019, June 28). Retrieved from //www.taxchampions.com/wage-garnishment/

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