Owing back taxes or a tax bill higher than you can afford and facing the potential of wage garnishment is overwhelming. Tax relief companies help Cleveland residents with tax debt by negotiating with the IRS to arrange manageable payments or a settlement. Our partners at ConsumerAffairs researched the best tax relief companies in Cleveland to help you get a fresh start with the IRS.
If you owe back taxes to the IRS, you should take prompt action to avoid wage garnishments and other adverse actions. Tax relief companies use their experience with tax laws to represent your interests to the IRS and work to establish an installment agreement or negotiate a settlement on your behalf.
What types of tax relief are available in Cleveland?
One of the most popular tools for resolving tax debt in Cleveland is an offer in compromise (OIC). Under the IRS’s Fresh Start program, taxpayers may be eligible to settle their debt for a lesser amount than they owe. There are some basic requirements to qualify, and you must show that you are unable to pay the full amount of tax liability or that doing so would create a financial hardship.
The five requirements for filing an offer in compromise are:
You must have filed all tax returns
You must have received a bill for a tax debt
If making estimated tax payments, they must be current
Businesses with employees must be current on all federal deposits
You must not have a pending bankruptcy
Other options for tax relief in Cleveland
If an OIC isn’t the right option for you, there are several other types of tax relief available. Some of the most popular options include:
Installment agreements let you pay off your tax debt in monthly installments. You must owe less than $50,000 to qualify for an installment agreement, and the interest and penalties can add up to 8 to 10 percent a month.
Tax penalty abatements waive a penalty the IRS has issued for missing a tax payment or failing to file returns on time.
IRS appeals can be filed with the Office of Appeals, an organization within the IRS, if you disagree with the amount of taxes the agency states you owe. This process can take up to a year but is less expensive and faster than going to court.
Under a release of wage garnishment , the IRS agrees to stop withholding part or all of your paycheck and applying it to your tax debt. To qualify for a release of wage garnishment, you must prove it is creating a financial hardship.
Most Cleveland tax relief companies require a minimum tax debt of $10,000, and the tax relief process lasts from several months to a year. Those entering an installment payment agreement may make monthly payments for several years until the debt is paid. Keep in mind that penalties and interest may continue to accrue over time.
Any “substantial probability” that a collected claim would result in a refund
How much does tax relief cost in Cleveland?
Tax resolution companies in Cleveland use various fee structures. The average cost for tax relief services is between $1,500 and $4,500 but varies with the complexity of the case and the amount owed to the IRS. A tax penalty abatement may cost less than $500, while an offer in compromise for a large debt may cost $8,000 or more.
Be sure to gain a clear understanding of your financial obligations. Typically, companies charge an initial fee and bill additional work at an hourly rate. Some companies may charge flat fees or base the cost on a percentage of the amount of debt you owe. Fees reflect the complexity of your situation; for example, the IRS usually requires more detailed documentation for large debts.
How to choose a tax relief company in Cleveland
Because of the cost and the potential consequences of owing back taxes to the IRS, it’s crucial to work with a reliable company that provides results. Customer reviews are an excellent source to check whether a company is known for diligent work and strong customer service.
Only enrolled agents, certified public accounts, or attorneys qualify to negotiate with the IRS as a third-party. Reputable companies are also likely to be members of professional organizations such as the National Association of Tax Professionals (NATP), National Association of Enrolled Agents (NAEA), American Academy of Attorney-CPAs (AAA-CPA) or National Society of Tax Professionals (NSTP).
Be sure to verify the tax relief organization is legitimate. The Federal Trade Commission reports many consumers are victimized by unscrupulous schemes. Beware of any company that promises complete relief of all IRS debt or guarantees specific results — when it comes to tax relief, remember that if something sounds too good to be true, it probably is.
Anthem Tax Services is licensed to provide tax relief services for individuals and businesses in all 50 states. The company states it can complete the process faster than its competitors and offers a 100 percent money-back guarantee if unable to provide results. Cleveland customer reviews praise Anthem’s employees for their professionalism and customer service.
Community Tax offers a wide range of services, including tax preparation, monthly bookkeeping and identity theft recovery. The company has saved clients more than $600 million through tax relief, and many Cleveland customers said the amount of debt reduction Community Tax reached through settlements exceeded their expectations.
Larson Tax Relief has been in business since 2005 and provides service in all 50 states. It offers a variety of tax services, including offers in compromise and installment agreements. The company has an A+ Better Business Bureau rating, and Cleveland customers say its representatives put them at ease and did not use high-pressure tactics.
An experienced tax attorney will handle your case at J. David Tax Law. This firm works with tax debts of more than $10,000 and creates customized solutions to your unpaid taxes, tax liens, unfiled tax returns, tax audits, bank levies and wage garnishments. Seeing if you qualify is easy with the quick application process.
Victory Tax Lawyers is a well-established firm that uses its attorneys’ experience working with the IRS to achieve the ideal outcome in every situation. The company only hires attorneys with a minimum of five years of experience in the field. Cleveland customers appreciate how Victory Tax Lawyers keeps them constantly informed.
Unlike local lawyers or CPAs, Fortress Financial’s tax attorneys specialize in back taxes relief. A licensed lawyer will handle your case. Based in Oregon, Fortress Financial helps clients from all states with Offer in Compromise and many other tax resolution services with the IRS and state tax agencies.
Instant Tax Solutions offers free consultations and individualized plans for tax relief. The company has an A+ rating with the Better Business Bureau and prides itself on being built on honesty and integrity. Reviews from Cleveland customers recommend the company for its excellent customer service and professional staff.
Attorney's Tax Relief
These tax attorneys based in Chicago serve clients nationwide. Attorneys Tax Relief boasts the highest Offer in Compromise acceptance rate and free consultations. The company helps individuals and businesses facing an IRS investigation and promises aggressive defense no matter what state a client is in.
The Tax Resolvers is a BBB-accredited tax relief company that works with tax attorneys, arbitrators and accounting experts to manage your IRS debt. This company also offers tax consulting, tax preparation and tax settlement. Online reviews are positive, and customers appreciate the help they received through The Tax Resolvers.