During tax season, many people find themselves facing tax debt and are struggling to find a resolution that does not result in their tax problems causing additional financial burden. In these cases where individuals or small businesses are unsure about how to approach their tax problems, they seek advice from tax relief companies such as Ideal Tax Solution. While tax relief companies claim to help clients resolve their ongoing tax issues and negotiate with the IRS, most people want to ensure that a company is worth it before investing their time and money in their services.
What Is Ideal Tax?
Ideal Tax is a tax relief company based in Orange County, California, that was founded in 2010 by a group of tax attorneys. The intention of this business is to provide tax debt resolution services related to both state and IRS taxes and help ease the stress and burden caused by unresolved tax issues. Ideal tax is a BBB-accredited business with a specialization in reducing tax debt, removing bank levies, bank liens, and wage garnishments, and assisting with tax audits. Overall, the goal of Ideal Tax is to help clients find the best resolution possible for their tax situation.
Ideal Tax Accreditation
Ideal Tax is accredited with a BBB rating of A+, as well as being a member of the National Association of Tax Professionals (NATP) and the American Bar Association (ABA). The team at Ideal Tax is made up of qualified tax attorneys, CPAs, and ex-IRS agents who are licensed and experienced in resolving tax issues.
- Better Business Bureau
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- Best Company
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- Business Consumer Alliance
BCA assigns business letter grades from AAA to F to promote business self-regulation.
Tax Professionals at Ideal Tax
The team at Ideal Tax is made up of experienced tax professionals that allow the company to assist clients with a range of tax relief services. Some of the types of tax professionals at Ideal Tax include:
- Tax Attorneys
- Licensed Enrolled Agents
- Case Managers
- Tax Consultants
By having professionals on staff who are knowledgeable about all aspects of the tax collection process and IRS laws, clients who work with Ideal Tax can get advice from experts in that specific topic, which can optimize their outcome when exploring tax relief options.
The Ideal Tax 4-Step Process: Pros and Cons
There are four key steps in how Ideal Tax provides tax relief for clients, and as in any industry, there are pros and cons to their approach. Below, we have outlined the details of their 4-step tax solution process as well as highlighted the benefits and drawbacks of each step.
- Free Consultation
Before a client has to commit to paying the fees associated with Ideal Tax tax relief services, their platform offers the opportunity to submit a request for a free consultation. During this meeting, clients can meet personally with tax professionals that can advise them on how the tax relief process works and if the program will be a good fit for their tax situation. The experienced tax analyst will review the details of the client’s case and display their options.
Pros of the Ideal Tax Free Consultation
As stated on their website, many lawyers charge upwards of $250/hour for a consultation call. Based on this comparative rate, providing this service for free without any commitment from the client makes this program much more accessible for people who otherwise would be unable to afford to reach out for professional tax help. While those clients may be willing to invest in a tax resolution firm that they felt understood their situation correctly and had a personalized plan to approach their tax issues, it can be difficult to justify spending hundreds of dollars for a consultation call that may not result in a tax debt reduction, especially when they are already facing financial hardship.
Cons of the Ideal Tax Free Consultation
A free consultation with the tax experts at Ideal Tax may encourage the client to move forward with Ideal Tax for their tax relief solution. However, if the client does not want to move forward with Ideal Tax’s services, they will not receive tangible help toward reducing their tax debts. For this reason, a client may find that it was a waste of time to meet with a tax resolution specialist if they do not move forward with the program.
- Instant Protection
If the client decides that Ideal Tax is a compatible company in helping them face their tax burdens, the first thing they can expect is for Ideal Tax to file a “Stay of Enforcement.” This process will block the IRS from taking action and seizing the client’s assets such as their bank account or home. This instant protection creates time for an appropriate tax resolution to be reached without their tax liability increasing.
The form of “instant protection” that Ideal Tax referred to in this instance is known as the Currently Non-Collectible (CNC) status. If a taxpayer’s account is listed as currently non-collectible, the IRS is unable to collect upon tax debts, freeze their accounts, or go after their assets.
Pros of the Ideal Tax Instant Protection
It can be helpful for people facing serious tax problems to have their accounts flagged as currently non-collectible because it gives them time to find a long-term resolution for settling with the IRS. Rather than living in fear that the IRS may levy their assets or income, the taxpayer can more comfortably solve their tax issue.
Cons of the Ideal Tax Instant Protection
One of the main drawbacks in this step of the process is the wording around “instant protection.” While achieving CNC status does protect the taxpayer from being collected, the process of gaining CNC status is not instant. When someone applies for CNC status, the IRS will only approve it if they determine that the taxpayer cannot reasonably pay their tax liability without undergoing extreme financial hardship.
Additionally, on the Ideal Tax homepage where they list information about the instant protection program, they do not mention the consequences of attaining CNC statuses, such as that interest and penalties will continue to accrue on the debt owed even while the CNC status is placed. However, they do provide free resources and articles on their website that thoroughly outline the details of CNC status and other forms of tax relief.
The third step in the process of working with Ideal Tax involves a full investigation of the client’s accounts. By looking at all of the angles, they apply their strategy and expertise to help the client save as much money as they can. While a client could do their own research about tax relief options and how they can negotiate with the IRS themselves, by using tax professionals with expert knowledge about the subject and connections in the industry, they are often more likely to receive a favorable settlement.
Pros of the Ideal Tax Investigation
Most of the time when a person or company is seeking advice from a tax resolution company like Ideal Tax, it is because the language and laws involved in the subject are too technical for them to understand with confidence that they will be able to find the best outcome. The ability to consult with a tax attorney and tax managers who are experienced in negotiating with the IRS and finding tax resolutions can give people the confidence that they will receive the best outcome in the situation.
If a person tries to tackle the IRS negotiation without the help of a tax expert, they may unknowingly end up paying significantly more toward their tax debts than if they were able to settle with the IRS and find a better outcome.
Cons of the Ideal Tax Investigation
Despite the industry knowledge of the tax experts during the investigation process when Ideal Tax will review all of the client’s financial documentation and history to search for a resolution to their tax problem, it is important for clients to realize that the IRS’ decision will ultimately depend on their financial qualifications for that form of IRS tax relief. The verbiage on the home page may be misleading for clients to believe that Ideal Tax could achieve a highly rewarding tax settlement regardless of their situation. In truth, the factual details of their case will dictate the IRS’ decision, and it is the guidance through the negotiation process that can help optimize the outcome.
After going through all of the steps of consulting with a tax professional, applying the Stay of Enforcement, and a thorough investigation, the final outcome may save the taxpayer thousands of dollars that they may have otherwise owed to the IRS. The experienced tax professionals at tax relief companies like Ideal Tax can guide you through the process to ensure the client gets the ideal resolution for their tax problems.
Pros of the Ideal Tax Resolution
At this stage of the 4-step process, Ideal Tax takes the research from their investigation and applies the customized solution. Many individuals find the idea of negotiating with the IRS intimidating and would prefer to have assistance throughout the whole process, so by collaborating with a tax resolution company, they can feel more comfortable that everything is being taken care of accurately and with the most appropriate course of action. There are many different forms of tax relief that have different benefits and drawbacks, so consulting with a tax company representative can help them find the solution that is best for them.
Cons of the Ideal Tax Resolution
While it is beneficial to have the assistance of a tax professional when determining which form of tax relief is most appropriate for your situation and actually applying for tax relief, individuals who are motivated can utilize free resources online to find the information they need. Due to the fact that the IRS will evaluate applications based on certain financial prerequisites, such as how much tax debt they have, if they are up to date on filing tax returns, their income, and living expenses, the individual will have all of that information that they need without the help of a third-party tax relief company. So, if the person wishes to pay the least amount of money overall when searching for a tax resolution, it could be more beneficial to approach the process alone and put all the money toward paying their tax debts.
Services Offered By Ideal Tax
Ideal Tax provides a comprehensive range of tax services and tax relief programs that allow individuals and businesses to find tax resolutions for their individual circumstances.
- IRS Fresh Start Program
The IRS Fresh Start Initiative may reduce the tax debts of eligible people who are unable to pay by up to 90%.
- Amending Tax Returns
An amended tax return can allow individuals to correct their tax returns for the current tax year.
- Back Taxes
Back taxes are taxes owed to the IRS that were not paid during the tax year that they were due.
- Currently Non-Collectible Status
The IRS cannot collect back taxes from an individual whose account is flagged as currently non-collectible.
- Installment Agreement and IRS Payment Plans
An IRS payment plan allows taxpayers to pay back their tax debt through installment agreements that will not place a further financial burden on them.
- Penalty Abatement
Penalty abatement is the waiver of fees from eligible taxpayers who failed to file, pay, or deposit payment for penalties, usually, if it is a first-time offense.
- Tax Audits
An IRS tax audit is when a thorough investigation is placed on an account to ensure that all of the details in a tax return are accurate regarding income and deductions.
- Trust Fund Recovery Penalty
A trust fund recovery penalty can be placed on a company by the IRS if the corporation neglects to file a tax return and pay what is owed in trust fund taxes.
- Tax Relief
Tax relief involves reducing a tax burden by negotiating a settlement with the IRS or organizing a payment plan.
- Asset Protection
Asset protection is the process of protecting personal and professional assets from civil money judgments
- Bank Levy
Creditors can issue a bank levy to seize bank account funds to pay toward an existing debt.
- Innocent Spouse Tax Relief
Innocent Spouse Tax Relief protects an innocent spouse from underpayment of taxes that were erroneously reported on a tax return that was filed jointly.
- Offer in Compromise
An offer in compromise is a settlement with the IRS so the taxpayer can agree to pay less than what was initially owed.
Personal and professional assets can be seized to collect on tax debts that have not been paid.
- Tax Lien Subordination
A tax lien is a claim placed on an asset to secure payment for a debt.
- Wage Garnishments
Garnished wages are directly withheld from an employee’s paycheck and paid to the IRS.
Other Benefits of Ideal Tax
- Minimum Debt Requirement
To qualify for debt relief services at Ideal Tax, the individual must meet the minimum debt requirement of $7,500, which is significantly lower than many other tax relief companies that require a minimum debt of $10,000.
- Refund Policy
To ensure customer satisfaction, Ideal Tax offers a money-back guarantee within 48 hours of signing the contract.
- Customer Reviews
Ideal Tax has representation across many review platforms with an average rating of 3.0 to 5.0 stars. Many of the reviews mention their efficiency, expertise, and superior customer service.
- Google Reviews: 4.0 stars, 250+ reviews
- Best Company: 4.5 stars, 100+ reviews
Other Drawbacks of Ideal Tax
- Price Information
For customers who are eager to get started on their tax relief journey, it would be beneficial to have a clear breakdown of what the expected investment might be. Clients seeking tax advice are already facing financial struggles, so the lack of clear information on the costs of Ideal Tax services requires them to meet in a free consultation before gathering additional information.
- Timeline Information
The Ideal Tax website also neglects to list how long it might take before a tax burden is resolved. For customers who are unfamiliar with the tax relief process, it would be beneficial to have a clear estimate of the timeline for the different tax resolution options.
The Final Verdict: Ideal Tax Review
Ideal Tax is a tax relief company that seeks to help clients resolve their tax issues. Although their website lacks distinct pricing information, Ideal Tax is accredited by the Better Business Bureau and has a team of tax attorneys, CPAs, case managers, and licensed enrolled agents that are experienced in helping customers reach a tax resolution, so it is worth looking into to clarify things.