Over the past few years, the tax relief industry has experienced substantial change. As the economy deteriorated and Americans were facing growing financial strains, many individuals and companies were finding relief from the burden by not paying tax. In addition, large numbers of tax firms began to sprout up to meet the enormous demand for tax services. Tax gurus on late-night TV and radio advertisements will “settle your tax debt for pennies on the dollar.” Despite being tax geeks themselves, we couldn’t make sense of which tax firms are good and which ones are bad. Hilbrich Law Firm offers excellent info on this.
Tax relief companies-The right one to choose for you
There are three types of professional firms under the broad umbrella of “tax relief firms”: Law firms, CPA firms, and Hybrids. The first two types are self-explanatory, and since the latter category really has no industry-standard name, it’s probably acceptable to call them a “hybrid.” But which of the three categories fits you right?
As you know, ONLY lawyers form a law firm. A law firm that hire employees, such as paralegals, but a tax attorney is essentially ALWAYS the person responsible for any tax work done. All tax attorneys employed by a law firm are subject to their state bar’s rules of ethics and disciplinary action. A tax attorney may usually advise any client on any federal income tax matter in every state of the U.S.
The pros for hiring an attorney’s office are that you may feel confident because I an attorney is actually liable for the tax problem, (ii) you have a straightforward means of filing lawsuits (i.e. with the satellite bar) if the attorney screws up, and (iii) attorneys are subject to strict ethics guidelines so that they can work to the highest standards. The downside of this is that law firms are usually more competitive than the other two tax firms. In addition, some law firms (or lawyers) do not focus exclusively (or even primarily) on tax-related work, so they may lack the skills and expertise needed to battle the IRS. Just ask your solicitor what other types of work he or she does, and this will give you a sense of whether his or her specialty is tax (and specifically tax relief).