Are there any "real" tax debt relief" companies that are legit and will not cost you alot in the long run? We still owe $6500 from 2006, we have not even filed 2007 but I do know that we owe another 10K and now it is time to file 2008.

Don't be fooled by these companies that are touting tax debt relief ad's. Generally speaking, it is only under some very strict circumstances that the IRS will offer debt relief to taxpayers.

The taxpayers must demonstrate that they have no substantial assets and no hope of being able to pay off this past debt, and a reasonable assurance that there would not be a future tax liability, you have to demonstrate that your business has failed or is failing, and that it would be difficult to pay the entire debt over say 5 years.

Also, the IRS would request a personal financial statement that would show all your assets and liabilities and a statement of cashflow demonstrating your ability to make payments to satisfy your IRS debt.

Of course, there are some companies out there that have made deals with the IRS that have resulted in tremendous savings to taxpayers. Some of the more reliable and notable "Tax relief firms" have ad's in our website that you should perhaps contact, but be aware this process is exhaustive and not cheap.

Good luck!

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Ask TaxGuru Please refer to the legal disclaimer.

Baynard,

There are legimate tax professionals who can help you settle your tax debt for significantly less than you owe; but as the Guru mentioned above, you must prove that the IRS will not be able to collect your entire tax debt. (which is very difficult and would definitely require the help of a tax professional).

Also, you should file your 2007 return as soon as possible - you will already have to face significant interest and penalties for not filing, which are only compounded when you don't pay.

My website www.taxattorneytaxrelief.com has information on the different types of tax relief programs offered by the IRS as well as advice and information on hiring a reliable tax professional.

Good luck!