Do you need help with unpaid payroll taxes? Here’s a brief overview of choosing the most suitable tax settlement company.

Are you behind on your payroll taxes?

You probably aren’t in the mood for more bad news, but payroll taxes are one of the biggest reasons SMBs find themselves in hot water with the IRS. 

What’s more, unpaid payroll tax recently became more dangerous for employers than before. If significant enough, the IRS can turn over cases of unpaid payroll taxes directly to the IRS Criminal Investigation Division to review for criminal prosecution. 

Payroll taxes remitted by employers make up roughly 70% of all taxes. In other words, the government can’t afford to let payroll tax payments fall through the cracks. 

But, as a business owner, you might not be able to afford paying up everything you owe. If you owe more in payroll tax than you can pay, you might want to apply for a tax settlement. 

Tax settlement companies can successfully help businesses navigate the application process and appeal to the IRS. However, not all tax settlement companies are created equal.

Keep reading to find out 6 key tips for hiring the right company to help with unpaid employer taxes. 

1. Don’t Choose a Firm That Makes Unreasonable Promises

Getting into tax trouble can leave business owners feeling desperate. Unfortunately, there are unscrupulous tax resolution outfits that try to take advantage of this.

These types of tax resolution businesses usually dangle a carrot by promising a drastic reduction in owed taxes before even seeing your financial data.

Any tax resolution service that makes too-good-to-be-true promises before receiving a detailed financial background on your case is not conducting full due diligence. 

Therefore, if a tax agent makes confident claims about how they can wipe away your unpaid payroll tax—before knowing your case details—it’s usually best to steer clear.

Instead, look for a reputable tax relief firm that reviews all your applicable financial data before giving you an assessment. 

2. Vet for Experience

Besides choosing a tax settlement company that does due diligence and offers a thorough evaluation—you also should look for one with experience. 

Because there are bad actors in the space, it’s very important to only work with tax settlement professionals who have a proven track record. 

Things like testimonials, reviews, local reputation, and years in business are all good indicators to use when evaluating a business’s track record. 

3. Make Sure You Understand the Fee Schedule

Before you hire a tax settlement professional, it’s critical that you have a clear picture of their fee structure. 

Most tax settlement companies have a set fee structure. Some charge a flat percentage rate on the amount you owe to the IRS. Others charge per hour, and some only accept clients with a certain minimum tax debt.

Some even offer a money-back guarantee if they’re unable to improve your tax situation.  

However, as we said above, not all tax settlement companies operate to high standards. Some materially misrepresent their fees to clients by charging them a low initial fee, and then demanding more once they are further down the resolution process. 

If you engage a trustworthy tax settlement company, your tax debt will be reviewed by a case manager. After they’ve evaluated your situation they will provide a fee estimate and a realistic assessment of what they can do. 

They will also have a clear discussion about all possible fees in the debt relief process.

If your case manager seems to be sidestepping some of your fee-related questions, or not giving clear answers, this is a red flag. 

Even if they aren’t operating nefariously, it still isn’t a good idea to hire a company that isn’t providing you with clear info on their fees. You need to know what costs you will incur and when. 

If you’re in debt to the IRS, the last thing you want to do is run up a bill you don’t expect with a tax relief company that’s not being transparent about costs. 

4. Choose a Firm That Offers Free Consultations

Most tax relief companies offer free consultations. This is very important because it allows you to compare your options without having to lay out money you can’t afford on consultation fees. 

If a tax relief company wants to charge you for their initial consultation, this can indicate two things:

• They aren’t offering a competitive price structure
• They want to lock you into working with them

Most people want to see results for their money. If you have to pay for your first consultation, this can make you feel like you have to choose that company, otherwise, the consultation fee will have been a waste of money. 

5. Investigate Online Reviews and Ratings

Online reviews can be a mine of valuable information when it comes to selecting a tax settlement company. 

Before you make a final decision, make sure you evaluate the available online reviews for all your prospective tax settlement companies. You can look at Google Reviews, Yelp, and company ratings on the Better Business Bureau (BBB).

BBB ratings can be very informative, as the Better Business Burea evaluates multiple criteria, including:

• Number of filed complaints 
• Size of business
• Responses to complaints 
• Complaint resolution rates
• Transparency of business practices
• Government actions
• Competency licensing

You can also evaluate any testimonials potential tax settlement companies have posted on their website. But, be aware that testimonials are pre-vetted. No company will willingly post a negative customer review on their site. 

6. Check Their Credentials

If you want professional, trustworthy help with your employer payroll taxes, you should also take the time to double-check professional credentials. 

Professionals operating legitimately in the debt settlement industry need be either a CPA, attorney, enrolled agent, or former IRS agent. 

In most cases, you will be working with a tax attorney or CPA when you hire a debt settlement company. But, to be sure, ask about their qualifications. 

You should also double-check their licensure. For instance, if you are working with a CPA, you can look up their license standing through your state board of accountancy. 

Do You Need Help With Overdue Payroll Taxes?

Payroll taxes are a big responsibility for businesses. If you fall behind and accrue unpaid payroll tax, this can trigger steep penalties and potential legal repercussions. 

There are ways to appeal to the IRS, but most business owners don’t have the time or tax knowledge to easily navigate this. Often, the easiest route is to hire a tax settlement company to handle your case. 

Are you in need of a reputable tax settlement professional? You’ve come to the right place. 

Here at Tax Relief Professional, we can connect you to a tax settlement company you can trust. 

Get your tax matter evaluated by filling out our contact form or phoning us at (877) 469-1651.