Find the Best Tax Relief in Detroit, MI

How to get tax debt relief in Detroit

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

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:

• Michigan Association of Certified Public Accountants (MICPA)
• National Association of Tax Professionals (NATP)
• National Association of Enrolled Agents (NAEA)
• American Academy of Attorney-CPAs (AAA-CPA)
• National Society of Tax Professionals (NSTP)

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 epp@irs.gov. 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.