Resolving tax debt can be confusing, frightening and overwhelming for Indianapolis residents. Whether you’re dealing with back taxes or are unable to meet a current tax obligation, tax relief companies represent your interests when dealing with the IRS. Our partners at ConsumerAffairs researched the best tax relief companies in Indianapolis to help find a manageable way to handle your tax debt at an affordable cost.
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Owing back taxes to the IRS carries heavy penalties, including wage garnishments, tax liens or a levy on your bank account. Tax relief companies in Indianapolis can help get penalties against you released or reduced by negotiating with the IRS on your behalf, but typically only work with clients with at least $10,000 in tax debt.
What types of debt relief are available in Indianapolis?
One of the most common types of debt relief in Indianapolis is reducing the amount of debt through a settlement, which is known as an offer in compromise (OIC). The IRS considers several factors when determining whether to accept an OIC, including:
The financial hardship that your full tax debt is causing
Your ability to pay a settled amount
Your current income and how it compares to your current expenses
Any equity you have in financial assets
A tax relief service helps determine your eligibility for an OIC and prepares the offer on your behalf. To qualify for an OIC, you must be current with previous tax filings and not be undergoing bankruptcy proceedings. If the IRS accepts the OIC, you may pay the settled amount in a lump sum or periodic installments.
Other types of debt relief in Indianapolis
If you don’t qualify for an OIC, there are several other ways to gain tax relief in Indianapolis. These include:
Installment agreements allow you to make monthly payments on your tax debt. To qualify for an installment agreement, you must owe less than $50,000. Interest and penalties can add up to 8 to 10 percent a month, so it’s best to pay off the total amount as quickly as possible.
Tax penalty abatements reduce the total amount of your tax debt by removing penalties the IRS assessed for missing tax payments, not filing a return on time or similar reasons.
IRS appeals can be filed with the Office of Appeals, an organization within the IRS, if you disagree with the amount of taxes the agency states you owe. This process takes up to a year, but it is faster and less expensive than challenging the debt in court.
How much does tax relief cost in Indianapolis?
For a $10,000 tax debt, the cost of tax relief in Indianapolis starts at $495 and can climb to an average of $4,000. You may pay more if your situation is particularly complex or you owe a lot of back taxes that have accumulated over multiple years of missed payments or filings. Setting up an installment agreement with the IRS may cost as little as $2,500, but you may pay $7,000 or more to prepare an OIC for a large tax debt.
Tax debt relief companies in Indianapolis use different fee structures. Many companies charge on an hourly rate, meaning complex cases that take longer are more expensive to resolve. Other companies charge an upfront flat fee, and some charge a percentage of the tax debt owed to the IRS. Tax relief services may also charge an all-inclusive fee or per service.
It’s essential to know how much you’re paying and how often you’ll be charged. If you’re required to make a monthly payment until the case is closed, be sure you’re aware of that. The Federal Trade Commission reports that unethical tax relief companies charge consumers more than the initial quote even after asking for hefty upfront fees.
Obtaining the tax relief you need could take as little as a week and as long as six months. If you communicate proactively with your tax relief company and provide all requested information, your tax problems will be resolved faster. Check reviews from former clients to find a company with a reputation for quick turnarounds.
How to choose a tax relief company in Indianapolis
The IRS encourages consumers to work with reliable, ethical professionals when they need help managing tax debt. The agency maintains a directory of IRS-qualified and tax professionals, including tax attorneys, certified public accountants (CPAs) and other financial professionals.
Check to see if a company is a member of a professional organization. Some of the specific associations you want your tax relief specialist to be a part of include:
Make sure the tax relief company you choose has worked with clients in Indianapolis before. Many companies conduct business electronically and over the phone, so ask if customer service is available if you need immediate help. Discuss prices before signing a contract — a tax relief company has access to all of your tax records and personal financial data, so you want complete transparency.
How to avoid a tax relief scam in Indianapolis
There are a few red flags that can warn you away from a tax relief company in Indianapolis. These include:
Promises that cannot be kept, such as complete release from tax liability
Incorrect information about eligibility for payment plans or offer in compromise qualifications
Advice to misrepresent your assets or income when communicating with the IRS
Requests for upfront fees with no detailed explanation of provided services
When you’re looking for tax relief, focus on companies that show you solutions the business has provided for customers in similar situations.
Anthem Tax Services has a local office and helps Indianapolis residents who owe money to the IRS face difficult situations like wage garnishment and tax liens. The company offers proactive, aggressive tax resolution services and assists with unfiled returns. Reviews from Indianapolis customers indicate Anthem Tax Services is affordable and has easy-to-work-with employees.
Community Tax assists individuals with tax debt and can work out wage garnishments and compromise settlements. The company protects Indianapolis taxpayers and provides information to help consumers avoid predatory behavior from other companies promising debt relief. Community Tax offers free consultations online or over the phone.
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.
Larson Tax Relief is a family-owned business with clients in all 50 states. The company helps people with emergency and long-term tax problems as well as business or individual tax returns. The company works out a personalized approach to solving and reducing tax debt for each client. Indianapolis customers appreciate the friendly staff.
Victory Tax Lawyers helps clients with tax compliance and tax controversy, resolution and litigation. Whether you have levies, liens or need an installment agreement, the tax specialists on staff at Victory Tax Relief can analyze your tax problems and come up with a customized solution. Indianapolis clients praise the firm’s personalized service.
Instant Tax Solutions specializes in tax problems such as back taxes, liens, levies and garnishments. The company’s attorneys and specialists help calculate how much you can save and provide a detailed plan for approaching your tax issues. Reviews from Indianapolis customers say they appreciate the thorough and prompt communication from staff members.
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