• Skip to content
  • Skip to primary sidebar
  • Skip to footer

Long Island Tax Resolution Services

  • Home
  • About
  • Blog
  • Free Consultation
  • Testimonials
  • En Español
  • Representation
  • Notices
  • Wage Garnishment
  • Back Taxes Help
  • Unfiled Returns
  • Levy
  • .
  • .
  • Call us at: 631-244-1650
You are here: Home / IRS TAX PROBLEMS / Back Taxes Help / The 8 Biggest Tax Relief Mistakes

February 6, 2011 by James Grennen

The 8 Biggest Tax Relief Mistakes

Mistake 1: Believing That Tax Resolution Firms Are Regulated

Neither the IRS nor any other branch of the government regulates tax resolution firms. This has resulted in rampant abuse. Large nationally advertised firms have charged many thousands of taxpayers excessive fees with little or no results. Research whether a firm is a scam artist. Google the firm by entering “name of the firm, scam” or “name of the firm, complaints”. Chances are the nationally advertised firm you are speaking with has at least one huge class action suit against them.

Mistake 2: Letting Emotion Dictate Tax Relief Decisions

This is usually the result of the taxpayer falling prey to the empty promises of sales agents of the large TV advertisers mentioned in Mistake 1. Taxpayers with tax debt problems hear what they want to hear instead of what they need to hear. Do the following slogans sound familiar?

  • Settle your tax debt for “pennies on the dollar”!
  • The IRS has a “one chance program” to settle your tax debt!
  • Reduce your tax debt to a fraction of its current amount!
  • Become tax debt free!
  • End your IRS fears today!
  • Get the IRS off your back!
  • Don’t become another IRS victim!
  • Are IRS tax problems ruining your life?

Mistake 3: Choosing The Wrong Tax Resolution Company in Long Island

It is startling how many taxpayers fail to do the following necessary homework when researching a tax resolution firm:

  • Avoid firms who say “former IRS agents” will handle your case. While the IRS background may be significant, it can lack “big picture” experience. Look for a tax resolution specialist with lengthy and broad experience rather than a former IRS employee with only specialized experience.
  • Only Enrolled Agents, CPAs or Attorneys can represent you before the IRS. Look closely at qualifications, certifications and length (and breadth) of experience. These should suggest a dedication to the tax resolution field. The person handling your case should be the same person representing you.
  • Large tax resolution firms usually do not have efficiencies which lead to faster conclusions or lower costs to you. They are more likely to neglect the case.

Mistake 4: Believing It Easy To Qualify For An Offer In Compromise

An Offer In Compromise (OIC) can lead to a significant decrease in tax debt. However, OIC programs aren’t for everyone. The IRS resolves less than 30{bf3da7fb6a4d0e0e3790d09a79b980fc065e33e2f3a2d49280f7e95b82f4982b} of cases in taxpayer favor. Reasons like significant debt or negative cash flow are not always good enough reasons to chase this solution. The taxpayer should seek the advice of a tax resolution specialist. Familiarity with IRS financial models is necessary.

Mistake 5: Focusing Only On The Back Tax Problem

Use of a financial plan can solve a back tax problem. The taxpayer may simply need to follow a budget. Often, full-blown financial planning is necessary. Trying to resolve tax debt without a budget or a financial plan is like a ship trying to reach its destination without benefit of navigation instruments.

Mistake 6: Settling For A High Cost Installment Plan

Less expensive options may be available. Lack of a budget or a financial plan will cause the taxpayer to be unaware of alternative solutions. Please see Budgeting Your Way Out of Tax Debt.

Mistake 7: Assuming The Tax Resolution Specialist Will Do All The Work

This is the single biggest obstacle to the tax resolution specialist. It increases the time to resolve a case. These taxpayer clients believe that once signing the necessary forms to engage a tax resolution firm, their job ends. Total cooperation is necessary. The client needs to present added tax documentation and background information.

Mistake 8: Believing The IRS Has Forgotten About You

The IRS might delay contacting a taxpayer. The taxpayer may then mistakenly think the IRS is finished with them. A taxpayer’s representative may file paperwork on their behalf. The taxpayer may confuse this with speedy resolution. The IRS has thousands of  talented and capable employees. But the sheer size of the organization, the volume of work and complexity of tax related issues makes the IRS plodding and slow. Eventually they will get to you.


Filed Under: Back Taxes Help Tagged With: IRS Tax Relief

Learn About Us

  • About Us
  • Enrolled Agents
  • Groups and Associations
  • Our Tax Resolution Process
  • Seven Reasons to Hire Us

About James Grennen

James Grennen is a Certified Tax Resolution Specialist who is expert in solving IRS tax problems and New York State tax problems. He has decades of financial tax experience in addition to being an IRS Enrolled Agent.

Reader Interactions

Primary Sidebar

Search Form

DOWNLOAD A FREE COPY OF THE ESSENTIAL TAX RESOLUTION GUIDE

Cover of the Guide

Your information is safe with us.

Attorney Plus Program

Long Island Tax Resolution Services is Not a Law Firm of Attorney Practice


Please click here to see why our Attorney Plus Program is the smartest way to resolve your IRS or State tax problems.

Be Smart Check List

IRS On Enrolled Agents :

"The Enrolled Agent is the most expansive license that the IRS grants a tax professional.

An Enrolled Agent has earned the privilege of representing taxpayers before the IRS.

Enrolled Agents are generally unrestricted as to which taxpayers they can represent, what types of tax matters they can handle and the IRS offices before which they can practice."


IRS Publication 4693A
(A Guide to the Enrolled Agent Program)

Man trapped by tax

NYS Tax Warrants: What Every Taxpayer Needs to Know

Man thinking. New York State Tax Problems FAQ

10 Frequently Asked Questions about New York State Tax Problems

Top 4 NY State Department of Taxation Collection Actions

Top 4 NY State Department of Taxation Collection Actions and What to Do About Them

Offer In Compromise (OIC): Tips To Getting Yours Accepted

The Penalties for Failing to File a Return or Pay Taxes

Footer

LITRS Company Profile

Long Island Tax Resolution Services specializes in providing affordable solutions to both individuals and small businesses experiencing back tax problems. These are either IRS tax problems or State tax problems.

Resources

Our Process

Privacy Policy

Recent Posts

  • NYS Tax Warrants: What Every Taxpayer Needs to Know
  • 10 Frequently Asked Questions about New York State Tax Problems
  • Top 4 NY State Department of Taxation Collection Actions and What to Do About Them
  • Offer In Compromise (OIC): Tips To Getting Yours Accepted
  • The Penalties for Failing to File a Return or Pay Taxes

Tags

Innocent Spouse Relief IRS Back Taxes IRS Bank Levy IRS Hardship irs notices IRS Offer IRS Penalties IRS Plans IRS Tax Relief IRS Tax Services IRS Wage Garnishment Tax Debts Tax Returns

Locations

Head Office (map above)
    80 Orville Drive, Suite 100Bohemia, NY 11716
    Phone: (631) 244-1650
    Fax: (720) 294-1650
Manhattan Location
    5 Penn Plaza, 23rd FloorNew York, NY 10001
2nd Long Island Location
    626 Rexcorp PlazaWest Tower, 6th FloorUniondale, NY 11556
Westchester Location
    50 Main St, 10th FloorWhite Plains, NY 10606

© Copyright 2014 - 2017 Long Island Tax Resolution Services · All Logos & Trademark Belongs To Their Respective Owners·