Find the Best Tax Relief in Waco, TX

How to get tax relief in Waco

First of all, most tax debt relief companies only help customers who have at least $10,000 in tax debt. This type of debt usually builds up as a result of back taxes from previous years.

If you did not pay your taxes within the last ten years, the IRS might ask you to pay the taxes you owed during that time. You will be charged a 0.5% penalty each month you’re late, up to 25% of your debt, plus additional interest on the debt itself. So, back taxes can add up quickly and make many consumers need tax relief in Waco.

If it’s your first time missing your taxes, a tax debt relief company is able to reduce your costs through penalty abatement. To be eligible for penalty abatement, you have to have a reasonable cause for missing payment, such as death, divorce or natural disaster.

No matter the reason for your debt, the IRS expects you to pay your taxes. However, tax debt relief companies work with the IRS on your behalf to get them to accept a smaller amount, usually in an installment agreement. If you’re unable to keep up with your current installment plan, tax debt relief companies negotiate smaller monthly payments on your part.

There is also an offer in compromise program from the IRS that allows you to settle your debt for less than you owe. Your tax debt relief company can help you set this up, but the IRS only settles when they don’t ever expect to get the full debt repaid.

Taxpayers in Waco can do most of the negotiations themselves with a lower chance at success if they prefer, but tax debt relief programs can be complicated and overwhelming. By hiring a tax debt relief company, you get results faster and lower your debt more than you could on your own.

How much does tax relief cost in Waco?

How much you pay for tax resolution in Waco depends on your total debt and the complexity of your case. Tax debt relief companies structure their fees in three ways:

• Hourly ($200-$550 per hour)
• Flat fee ($3,500-$4,500)
• Debt-based (varies)

On average, it takes two to six months to resolve most tax cases. If the IRS denies your case, it may take another three to nine months for an appeal.

There is also an initial investigation fee charged by tax resolution companies, which ranges between $250-$500 and covers the cost of planning your debt relief strategy and assessing how much you own. After this fee, the company outlines your plan of attack and how much it will cost.

Depending on the company, the overall price may be nonrefundable whether or not you settle your debt with the IRS. Because of this, there are many scams in the industry where companies take your money without doing any work. To protect yourself, be diligent finding a tax debt relief company. Look for positive signs such as:

• Money-back guarantees
• Realistic assessments
• Positive reviews
• Upfront pricing
• No full payments required before service

Use this knowledge to go out and find trusted tax relief in Waco.