Find the Best Tax Relief Companies in Boston, MA

How to get tax relief in Boston

There are important considerations when looking for a tax relief company and finding services. Most companies offer a complimentary consultation. This is used to gather information about your tax and financial situation to make sure the relief company is a good match. Remember: many companies have IRS tax resolution experience, but look for those with expertise in Massachusetts tax issues, too. There are fees for these services, so your specific outcome and potential benefits will need to be weighed against the cost.

Once you choose a tax relief company or individual to work with, you’ll sign a Tax Information Authorization form and start the process of filing any missing or past tax returns. After returns are filed, the relief company will review transcripts and let you know what relief options you have. You may also be asked to sign a Limited Power of Attorney (POA) form so the tax professional, attorney or relief company can talk directly to the IRS agent or revenue officer. Once a settlement is reached and payments are made, the POA can be withdrawn. Tax relief services are not a quick fix, and issues can take anywhere from nine to 12 months to resolve.

Unfortunately, there are some tax relief companies that may be out just to scam you. Red flags to look out for include large upfront fees, if they contact you first, big and/or outrageous promises and dishonest billing.

There are ways you can protect yourself from scams and find an honest tax relief company in Boston. First, you can ask a company and its representatives for their licensing information. You will want to speak with a CPA, a tax attorney or a licensed enrolled agent. Another consideration is upfront pricing; reputable companies should not charge large amounts upfront.

Don’t be afraid to ask lots of questions before agreeing to work with a Boston tax relief company. Read reviews online and ask family and friends for recommendations. This will help ensure your personal financial information is protected and handled with care.

Common tax relief options in Boston

Massachusetts lawmakers have recently announced one-time rebates for eligible taxpayers of $250 for individuals and $500 for married couples. Part of this plan also includes tax cuts for Boston and Massachusetts residents. This can help provide some financial relief, and if you’re still finding yourself behind on taxes, there are other common relief options.

• Offer in compromise: An Offer in Compromise (OIC) lets you settle your tax debt for less than the amount owed. However, not everyone will qualify for an OIC. You are only eligible after other payment options have been exhausted. The IRS has expanded OIC requirements, but it will not accept one if it believes a lump sum or installment plan is possible.
• Administrative appeals: If you are facing audit results and you don’t agree with the findings, you can file an appeal. The IRS Appeals division is a separate entity from the investigating office. Appeals can be conducted by mail, phone or in person. For an audit of less than $2,500, you can request an appeal online. However, if the appeal is for $25,000 or more, you have to send a formal written protest.
• Collections appeals: The Collections Appeals Program (CAP) is available before or after the IRS files a Notice of Federal Tax Lien, levies or seizes your property, terminates an installment agreement, rejects an installment agreement and modifies (or proposes) an installment agreement. You can also appeal rejected OICs, proposed trust fund recovery, denied trust fund recovery penalty and denied request to abate penalties.
• Installment agreements: Installment agreements are available if you can’t pay your tax debt with a full, lump sum payment. Installment agreements let you make smaller monthly payments until the debt is completely paid off. If you owe less than $50,000, you can apply for installment agreements online. If you owe more than $50,000, you’ll need to complete an IRS Collection Information Statement.
• Wage garnishment release: If the IRS is garnishing your paycheck, there are ways to have this released. Release requirements are either the tax debt is paid in full, releasing will help you pay the debt or you enter into an installment agreement. Additionally, garnishments can be released if it is causing economic hardship, which can take time to prove. With a median gross rent of $1,685 in Boston and mortgage of $2,470, having wages garnished could put you behind on living expenses. Releasing the garnishment can be helpful; however, you may need to come to another agreement with the IRS to satisfy the debt.
• Payroll tax negotiation: Businesses are responsible for two payroll tax types. One is paid by the employer based on wages and the other is deducted from employee wages directly. When payroll taxes aren’t paid, fees and penalties add up quickly and may even push a business to close. Around 22 percent of small businesses in Massachusetts closed in 2021 and 2022, so it’s important to note that closed businesses are still responsible for any outstanding taxes. With payroll tax negotiation, you can negotiate penalties, interest and taxes to lower debt. Additionally, you may be able to work out an installment plan and help get levies and liens removed.
• Tax lien withdrawal: Tax liens can be placed on your personal property, financial assets and real estate if you don’t pay a tax debt. Liens mean the IRS has a legal right to the property. The best way to release the lien is to pay the debt in full. However, lien withdrawals are available. To qualify, you must be in compliance in return filing for three years and current on estimated tax payments and federal tax deposits. Another withdrawal option is converting an installment agreement into a direct debit agreement. A lien withdrawal does not relieve you from paying the tax debt.
• Penalty abatement: You may qualify for a penalty abatement, also called relief, if you can show you tried to comply with tax laws and were unable to do so. This has to be related to circumstances beyond your control. Penalties eligible for relief include failure to file, failure to pay, accuracy-related, failure to deposit, dishonored check, underpayment of estimated take and information return.
• Bank levy release: When taxes are owed, the IRS can put a levy on your bank account, which means it seizes funds to cover the taxes you owe. With a Boston per capita income of $46,845 yearly, every dollar can be important to meet basic living needs. If you can prove the bank levy is creating economic hardship, it can be released. To prove hardship, the IRS must be able to determine that a levy prevents you from meeting your basic living expenses. One drawback to a levy release is that you may have to come to another repayment agreement with the IRS.
• Innocent spouse relief: If you are a part of the 29.7 percent of the married Boston population and find yourself owing taxes, you may qualify for innocent spouse relief. You can be relieved of paying the taxes if your current or former spouse didn’t properly report items or left items out on tax returns. The tax, interest and penalties that qualify for relief can be collected from the spouse or former spouse. But you will be jointly responsible for those that don’t qualify for relief.
• Request for currently not collectible status: If the IRS can determine you can’t pay your tax debt, it can make your account currently not collectible. Around 18 percent of Boston residents are at or below the poverty level, and there are a variety of reasons you may find yourself in poverty and unable to pay your taxes owed. Currently not collectible status doesn’t mean the debt is forgiven or goes away. It just puts a temporary hold on your responsibility to make payments.

How much does tax relief cost in Boston?