Tax relief can finally bring you piece of mind. Ending the nights of tossing and turning and the anxiety that comes every time you receive a letter from the IRS. Then you see commercials about fresh start and solve your tax debt for pennies on the dollar and you are thinking, “Yeah that sounds great, I want to get the IRS off my back.” Though you get stuck with this one question, “How much does it cost to get tax relief?” Don’t worry, you are not alone. You look at website after website only to find half information or even no price information at all. Well in this article I want to explain the cost of some of the tax relief options out there and what it will cost you to have Taxes Made EZ help you in your situation.
First thing, in the world of tax relief you need to understand, sometimes you get what you pay for. So if you walk onto a car lot and see a 2016 BMW X3 for a price of $5,000, the first thing you should be asking is what is wrong with it? The same goes for seeking tax relief, if someone is stating they can solve your $30,000 tax debt for $1,000, please be wary and make sure you ask what exactly they are going to do for you. If they are not following something like our Three Phase Approach, then some red flags should be raised.
The next thing you should make sure you are asking, who is handling your tax relief case. Not everyone can handle your tax relief case. CPA’s tend to stay more on the accounting side, so if you need your taxes done or Estate and Trust Planning, they maybe more suitable to help you. You will want an Enrolled Agent, who is federally licensed and can represent taxpayers before all admiration levels of the U.S. Department of the Treasury. To ensure you are getting someone of quality, you will also look for them to be a member of the National Association of Enrolled Agents or a member of the American Society of Tax Problem Solvers. This will help you determine that you have someone who can help you with your tax case before the IRS.
Once you have answered some of the basic questions, the next question is about how long they are going to take to solve your case. Most tax resolution cases take at least six months, if not closer to a year to reach a closure on a case. Here at Taxes Made EZ we solve all tax resolution cases in three phases. Our prices are based on these three phases and each phase will have a cost associated with it. I am going to lay out each phase so you can understand what you will be paying for, if you decide to work with us.
Phase I -Transcript Investigation and Analysis
We begin the tax resolution process by conducting a transcript investigation and analysis and an income and asset identification/verification. For us to successfully represent a client we need to know all the facts. We get this by requesting transcripts from the IRS through the Freedom of Information Act and analyzing them. During this process, you will also provide your income, expenses, and the assets you hold. From this information we can determine what the best course of action is i.e. Offer In Compromise, Partial Installment Agreement, Currently Not Collectible, Innocent Spouse Relief, etc. Once we have completed the transcript investigation and analysis, we will meet with you and let you know what you must do to seek relief in your tax matters. You can then decide if you want to hire us for Phase II and Phase III or do it yourself. We do not recommend you go about it yourself, but that decision is up to you.
If you do perform Phase II and Phase III on your own, you can save a significant amount of money. The downside to that is, if you don’t file the tax returns correctly that could end up a larger headache than what got you in the situation to begin with. But if you are savvy enough to file your tax return you can skip Phase II with our services and complete that on own your own and save yourself some money. Performing Phases III on your own has some more inherent risk than Phase II and is a little more difficult to navigate. First with Phase III, we as experts know of ways to legally reduce your offer amount or are able to show that you cannot pay your tax debt. Second and most importantly, if you are untruthful in the forms you fill out to prove your income with the IRS, they are under penalty of perjury and you can get fined or go to jail. So, at best your offer will get rejected or at worst you end up in jail. So proceed with caution on trying to do it on your own.
The cost of the Transcript Investigation and Analysis is $1500. This service includes:
- An assigned Enrolled Agent
- Power of Attorney before the Department of Treasury to have all communication with the IRS to be handled by the assigned Enrolled Agent
- Freedom of Information Act Request – Account Transcripts (up to 5 years)
- Freedom of Information Act Request – Wage and Income Records (up to 5 years)
- $75 for each additional year over 5 years
- Case Evaluation and Analysis of Resolution Options Meeting with Client
Phase II – Compliance (Tax Preparation)
To be able to reach any deal with the IRS, you or your business needs to be compliant. This means all unfiled tax returns will have to be filed and estimated payments will need to be made going forward if applicable. This step is hard for a lot of individuals to do on their own because they might not have records from 2010 to be able to do an accurate tax return. After we have completed the transcript analysis, we will have all the information from the IRS to be able to complete accurate tax returns without any surprise notices from the IRS.
The Cost of Compliance:
- Individual Income Tax Returns (per year) – $450
- Corporate Income Tax Returns (per year) – $1750
Phase III – Tax Resolution
To give you an idea of what it will cost you for the tax resolution aspect please refer to price list below. These are guidelines and the prices will be dependent on the scope of work needed to reach a resolution. These prices will be laid out after the completion of Phase I – Transcript Investigation and Analysis. The amounts paid by you during each of the three phases go into your calculation to determine your ability to pay your debt, which can reduce the amount you owe the IRS significantly.
|Release of Bank or Wage Levy
||$1,000 to $1,500
|Installment Agreement SL – ACS Under $25K Liability
||$1250 – $1500
|Installment Agreement SL – ACS $25K -$50K Liability
|Installment Agreement – ACS $50K – $200K Liability
||$2,500 – $6,500
|Offer in Compromise – Under $50K Liability
|Offer in Compromise – $50K – $100K Liability
||$4,750 – $6,750+
|Offer in Compromise – $100K – $300K Liability
||$7,250 – $9,750+
|Offer in Compromise – $300K – $750K Liability
||$9.750 – $14,975+
|Offer in Compromise – Over – $750K Liability
||$14,975 – $18,975+
||$3,500 to $6,500
||$1,000 to $2,500
|Audit Representation (per period/year)
||$2,500 to $4,500
|Lien Release, Withdrawal, Subordination or Discharge
||$750 to $5,000
|941 Employment Tax (in-business) Representation
||$5,000 to $15,000+
|941 Employment Tax Representation
||$5,000 to $12,500+
|Trust Fund Recovery Penalty Representation
||$6,500 to $17,500
If you need immediate assistance call our office at (856)232-0958 or follow this link to schedule an appointment.