If you owe money to the IRS, have back taxes or missed the deadline to file your return, a professional tax relief company helps by negotiating with the IRS on your behalf. Because of the amount of money involved and potential consequences, it’s essential to find a reputable business you can trust. Our partners at ConsumerAffairs the best tax relief companies in Detroit to find professional help at an affordable price.
Debt isn’t fun for anyone, especially when that debt is to the federal government and comes with an increased chance of wage garnishments and liens. If you owe the Internal Revenue Service more than you can afford to pay, tax relief is your best option.
Common types of tax relief programs in Detroit
Type of tax relief
How it works
Allows you to pay off the amount you owe in monthly installments.
Offer in compromise (OIC)
An agreement to pay an amount less than you owe, which can be paid off in a lump sum or monthly installments. Typically only available to those who cannot afford to pay the full amount of their tax debt.
Penalty and interest abatement
Removes penalty or interest fees from your tax debt, lowering the total amount you owe the IRS.
Appeals your debt to the IRS if you disagree with the amount the agency states you owe. These appeals are faster and less expensive than going to court.
What are the requirements to work with a tax relief company in Detroit?
Although it’s possible for most people to receive some form of tax relief, professional tax relief services in Detroit are predominantly geared toward people who owe $10,000 or more to the IRS. If you owe less than that, hiring professional help is cost prohibitive.
If the amount you owe is less than $10,000, you may be able to work directly with the IRS. For $186, anyone can file an offer in compromise with the agency. For those who meet the requirements, however, a professional tax relief service’s expertise allows you to get the best possible results.
Knowing how to navigate the program is a huge advantage. Tax relief services help if attempting to negotiate with the IRS has you feeling lost or you lack the time and energy to go it alone.
How much does tax relief cost in Detroit?
The average rate for tax relief services in Detroit is $3,000 to $4,500, but that amount varies depending on services. A company may charge a $250 flat fee for penalty abatement, while negotiating an OIC for a large tax debt may cost $10,000 or more.
Tax relief companies in Detroit use different fee structures. Many companies charge an upfront fee of $1,000 to $2,000 for specified services, with additional fees billed for subsequent services. Other companies charge an hourly rate regardless of the service provided, and some companies charge a percentage of the amount you owe the IRS.
Your final cost also depends on the amount of time it takes to reach an agreement with the IRS. The average timeline is two to six months, but complex cases require more time to solve, which increases the cost. Filing an appeal with the IRS may take a year to resolve.
To qualify for the federal tax relief programs, you must have filed all previous years’ returns and know the amount you owe. If you aren’t current on your tax returns, sorting out your back taxes adds to the overall cost.
Choosing a tax relief company in Detroit
While most companies in Detroit charge similar amounts for the same services, the quality of service offered by tax relief services varies greatly. Reputable tax relief businesses employ tax attorneys, CPAs or enrolled agents to assist you with the tax resolution process.
Check to see if the company is accredited to provide IRS education courses and has membership in one or more of the industry’s leading professional organizations, such as:
You can check an employee’s credentials by looking up the status of tax attorneys on the State Bar of Michigan website and verify enrolled agents by emailing the IRS at firstname.lastname@example.org. A reliable tax relief company should also have positive reviews from previous clients. Avoid any company with poor reviews or no available reviews.
How to avoid a tax relief scam in Detroit
When talking to Detroit tax relief companies, it’s important to know the warning signs associated with a scam company. The Federal Trade Commission is flooded with complaints about tax relief services, including companies that take clients’ money without delivering results or inflate invoices and create fraudulent charges.
With so many scam tax relief services out there, the FTC warns taxpayers to be vigilant when hiring a tax relief company and avoid companies that make grand promises or offer solutions before they review your information.
Warning signs of a scam tax relief business
Promises complete relief of all IRS debt
Guarantees specific results
Claims to solve any issue in a matter of weeks
Fails to carefully go through information provided
Fails to ask questions after receiving information
Fails to provide detailed, written contract of services
Offers solutions before receiving and reviewing information
For more information on federal tax relief, visit the IRS online. For more information on state tax relief, check out this booklet from the state legislature on Michigan taxes and tax relief programs.
Anthem Tax Services
Anthem Tax Services is a national tax relief service with more than 30 years of experience in tax preparation and tax law. The company offers a 100 percent money back guarantee if it is unable to provide results. Detroit customers say the team gets results and is patient, knowledgeable and communicative.
Community Tax employs CPAs, tax attorneys and enrolled agents who specialize in federal and state tax services in all 50 states. Community Tax, also known as CTAX, has saved clients more than $600 million through different tax relief services. Detroit customers applaud the company’s bookkeeping and tax preparation services.
Larson Tax Relief has been providing tax relief services to businesses and individuals for more than 14 years. The company offers emergency tax services and assistance with tax relief options, including offers in compromise and installment agreements. Detroit customers say Larson Tax Relief has top-notch customer care, even after all issues are resolved.
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 specializes in tax controversy, resolution and litigation, with services that include filing returns and IRS negotiations. The business’s employees pride themselves on communication and a commitment to clients. Detroit customers say the team at Victory is honest, upfront, professional and skilled.
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 has helped thousands of clients save millions of dollars since opening in 2009. The company offers free consultations, individualized plans and a promise of honesty. Past clients in Detroit say the staff is friendly, kind and helpful but not afraid to fight to provide customers with the best tax relief options.
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.