Are There Any Legit Tax Relief Companies?

[Music] brought to you by the every dooll app start budgeting for free today today's question comes from Arlo in Texas are those companies that say they will help you deal with the IRS legit my husband and I had several years of unfiled taxes and fear that we owe the IRS a huge amount of money can those companies who claim that they can stop the IRS from garnishing your wages actually do it well I'm just wondering why you're waiting till you get to the point of garnishing of wages why not just dig a Little Deeper contact the IRS and find out what you owe and pay it and by the way if you're in baby step two if you're working on paying off your debt this is going to go right to the top of the list this is going to be Numero Uno nothing nothing ahead of it because you don't want I would change one thing in that suggestion we're not going to contact the IRS uh we're going to contact a tax professional and file our tax ta well yeah you got to file your taxes tell the IRS what you owe they're not going to tell you what you owe you don't want to ask the IRS anything cuz they don't know either they're dumber than a rock that is true they send those statements they just make up crap so but no you need to catch up on your tax filings and figure out where you are and the answer to your question is no those companies don't work yeah okay so here's the thing if you file your taxes and get caught up the likelihood of you being criminally charged for failure to file is very low when you come forward come out of the cold so to speak get back on the grid so to speak and file your taxes they very seldom criminally charge you they because failure to pay the IRS is not a criminal offense failure to file is a criminal offense M so about 2572 people are something like that every year last year it's 27572 get put in jail for not filing their taxes it is a criminal offense okay so you don't want to screw around with this you need to right now before Christmas immediately get online at Ramsey solutions.com click on our tax professionals our elps our endorsed local providers for taxes get your crap together go over there and get your taxes filed immediately even if you don't pay him a dime and you don't have a dime that's right that's step one get rid of the probability of a criminal issue then we'll deal with the mathematical issue of can they garnish e wages and are there reductions okay so let's get into that for just a second because people are spending more time at home during the holidays and watching cable TV and cable news where you see we have former IRS agents working for us and we can reduce your tax burden if you have 10 ,000 or more in IRS debt contact us and we'll make your life okay in the fine print it says bull crap okay so uh because that's what it is so here's the deal that you can have a tax professional represent you that is not on cable TV and they can help you with the process there's a couple of things you can do thing one is what Jade said scratch the money together and pay them if you're not anywhere near that at least contact them and you can get on a payment plan yeah it's ridiculous penalties and ridiculous interest M you don't want to do that if you can get the money anywhere else including borrowing it somewhere else and changing your IRS debt into credit card debt I would have you do that because it's a better deal hey say that again because I told somebody that one time and they had my head for it no I you I you've got one kind of debt that's bad debth I would rather you have a different kind of debt that is better debt I agree okay let me just tell you credit card debt is bankruptable credit card debt has to go through a legal process to garnish of your wages IRS debt is not bankruptable IRS debt has a higher interest rate than credit card debt has IRS debt can wage can garnish your wages without going to court they don't have to get a judge's permission all other forms of debt have to do have to so this is the worst kind of debt to have so if you can make it into another kind of debt you got a $20,000 IRS DEET I would lot rather you owe $220,000 on a credit card than $20,000 to the KGB amen amen okay and if if you guys don't like Jade saying that well you're stupid okay so Jade was right when she said that that's just don't be stupid okay it's it makes makes life painful so the uh the the so now the next thing is this you do the payment plan now the other thing they say is we can reduce your tax burden bull yeah they'd have do something Shady no there there's one way you can do it legally but it's so thin and narrow is the door it's called an OIC an offer and compromise and you can submit to the IRS your situation and ask that they accept less than the actual tax debt try to get them to settle with you like as a hardship yep when do they approve an offer in compromise to take your $100,000 debt and allow you to pay 20 instead okay well you'd have to prove that you have nothing yeah no income no potential for income no assets no house no car no money you are what you have to prove what they call pper status wow poor people you got to be homeless basically penniless and then they will approve a compromise because they don't think they're going to get their taxes anyway but I'm telling you to get an OIC through and I've gotten a few of them through I've worked with clients over the years that were in hardship situations and had massive tax bills and we worked with tax attorneys that we paid good money to not some goober on cable television okay and you can get an OIC through but I'm telling you out of a hundred that I work on or I have worked on over the years I've gotten three or four through it just doesn't happen yeah okay you don't want to be on that status well you got the things you that you know it's like well I it's inconvenient inconvenient they don't care if it's inconvenient you have a car sell the car and pay me you have a house sell your house and pay me mhm they don't care if you're homeless you don't care your grandmother's Diamond brooch they don't care sell it they want to know everything and not revealing assets to them in this process is also criminal fraud yeah so this is just is you're just playing with tiger here you don't want to deal with these people what you want to do is get your taxes filed get on a payment plan roll up your dadgum sleeves and clean up your mess and quit looking for easy fixes for major stupid stuff usually major stupid stuff comes with major problems to fix it yeah there's no quick and easy you don't get out of debt quick took you 20 years to make the mess it a you're not going to get out in 20 minutes and for the self-employed people that are listening pay your dadgum taxes just file your quarterly please just do it and and and if you don't want to do it yourself invest a little bit of money and just hire a bookkeeper to stay on top of this and make sure that that is going through properly for you I'd rather pay them a little bit of money every here than deal with a tax burden and deal with getting myself in hot water with the IRS I'm just I'm $199 and I forgot I had to pay taxes you forgot you know I mean this is what they I made 100,000 bucks I paid no taxes for two years that means you made 200,000 bucks that means you have a tax bill of 50 Grand laying around or more and so you know that's a lot you do not want to have this crap sneak up on you it it's not really sneaking up on you you're just pretty much uh we just discovered denial is not just a river in Egypt you totally stuck your head in the sand how's that okay so let's make it clear Dave because we say all the time don't don't use a professional for this don't use a guy for this but use a guy for this so make it clear when do not use cable TV people to fix anything in your money we don't use we don't do consolidation commercial runs between Snuggies and walk-in bathtubs it's not a credible operation okay hello not think about it you know if you're if you're Financial ad comes between walk-in bathtubs and Snuggies you got bad financial advice I'm just telling you okay that this is what you got think about what's going on around you okay create your free every dollar budget today the simplest way to budget for your life