 TITLE: How Does Tax Relief Work? CONTENT: What About Tax Relief Companies?\n--------------------------------\nTax relief companies regularly use the internet, radio and television to advertise their services to struggling taxpayers. Essentially, tax relief companies work by negotiating with the IRS on your behalf—for a fee. That fee can reach into the thousands of dollars, with no guarantee that they'll be any more successful than you'd be if you negotiated with the IRS on your own.\nIf you hire a reputable tax relief company to work on your behalf, they may contact the IRS to try to negotiate an offer in compromise, installment agreement, or penalty or interest abatement.\nIf you prefer to have a third party represent you, make sure you hire a reputable and qualified tax professional. The Federal Trade Commission (FTC) cautions that only certain tax professionals have the authority to represent you with the IRS. These include:\n*   Enrolled agents (federally authorized tax practitioners who can represent taxpayers before the IRS)\n*   Certified Public Accountants (CPAs)\n*   Attorneys\nWhen hiring a third party to represent you, be on the lookout for high upfront fees, unfavorable refund policies, and default billing rates that kick in if you decide to cancel.\nFurthermore, the FTC recommends that you meet face-to-face with any tax professional you're considering hiring. Ask them to explain your options and the company's fee structure in detail before you pay anything or sign an agreement. END