You should consider hiring a tax relief firm when you have a complex tax situation that requires expertise in dealing with the IRS, while you can file your taxes on your own if you have a simple tax situation. Here are some factors to consider:
When to hire a tax relief firm:
- You own a business or have self-employment income
- You have multiple sources of income, such as rental properties, investments, or freelance work
- You have fallen behind on taxes and owe back taxes, penalties, or interest to the IRS
- You are facing an IRS audit or legal action, such as a tax lien or wage garnishment
- You are unsure about how to handle your taxes and want professional advice
When to file your taxes on your own:
- You have a simple tax situation, such as a W-2 form and no major deductions or credits
- You are comfortable using tax software or filing your taxes manually using IRS forms
- You do not have any outstanding tax issues or legal action pending against you
In general, it’s important to consider your comfort level with handling tax matters, the complexity of your tax situation, and the potential benefits of hiring a tax relief firm before making a decision. If you are unsure, it may be worth consulting with Matthew Jennings, JD, MBA, EA, RFC®, CEP®, CES™, aka Tax King Matt to discuss your options.