Dealing with a substantial tax debt can be a massive and stressful burden, particularly when you’re already facing challenges. Luckily, there are professional tax relief services available for those dealing with thousands of dollars in debt to the IRS.
Tax relief companies have a team of tax professionals who can assist you in negotiating payment options with the IRS and state tax agencies. This includes setting up payment plans and putting a pause on collections during periods of financial hardship, often referred to as “currently not collectible” status.
Keep reading to learn more about the top tax relief companies, evaluated based on their availability, cost, and consumer reviews.
Our Top Picks for Tax Relief Companies
- Community Tax Relief – Most Affordable Fees
- Anthem Tax Services – Best Guarantee
- Larson Tax Relief – Best for Large Tax Debts and Businesses
- Optima Tax Relief – Best Mobile App
- Tax Defense Network – Best for Bilingual Services
Most Affordable Fees: Community Tax Relief
PROS
1-Bilingual services offered
2-Affordable initial fees
3-Tax planning services help reduce the likelihood of future tax issues
CONS
1-No upfront fee information
2-Limited state tax debt relief options
Why we chose this company: Community Tax provides free consultations and affordable investigation fees, ranging from $295 to $500.
Specializing in federal tax debt relief, Community Tax also extends limited state tax assistance. Much like similar companies, they handle applications for various solutions, including installment agreements and offers in compromise (excluding innocent spouse relief).
What sets Community Tax apart is its commitment to bilingual assistance, available both online and through its representatives. Beyond tax debt relief, the company offers services such as tax filing, bookkeeping, and business accounting. Consultations are complimentary, and their A+ BBB rating is backed by positive reviews highlighting quick response times to customer complaints.
Community Tax serves customers with tax debt starting at $5,000. Their money-back guarantee varies by state, spanning from three to 10 days, ensuring a full refund if your issues remain unresolved. With initial investigation fees ranging between $295 and $500, they offer some of the more affordable options on our list.
HIGHLIGHTS
Minimum debt required: $5,000
Certifications and memberships: IRS Continuing Education Provider
Cost: Starts at $295
BBB Rating: A+
Best Guarantee: Anthem Tax Services
PROS
1-Money-back guarantee with no time limit
2-Some customers have reported cases resolved in as little as one week
3-Dedicated tax relief services for truck drivers
CONS
Customers have reported poor communication on cases that go on longer than a week
Why we chose this company: Anthem Tax Services offers one of the best full money-back guarantees in the industry, ensuring you get all your money back if your tax debt isn’t reduced or eliminated. (Please note that this guarantee doesn’t apply to tax prep services or the minimum deposit paid by clients.)
HIGHLIGHTS
The minimum debt required is 10,000
Certifications and memberships: National Association of Tax Professionals (NATP), National Association of Enrolled Agents (NAEA), California Tax Education Council (CTEC)
Cost: $400
BBB Rating: A+
Anthem Tax Services provides both IRS tax debt relief and corporate tax preparation services. They assist you in applying for all IRS tax debt relief programs, including offers in compromise (OIC), innocent spouse relief, and “currently not collectible” status.
Notably, Anthem also offers help with filing for wage garnishment and tax levy release—services not commonly offered by competitors.
Their money-back guarantee is also one of the best in the tax debt relief industry. If they fail to secure any resolution from the IRS—whether it’s a reduction in payment amounts or debt forgiveness—they promise a full refund. It’s important to note that this guarantee doesn’t cover the initial investigation fee, which usually starts at $400, depending on the details of your case. Pricing on the website is a bit unclear.
Anthem takes on customers with as little as $10,000 in tax debt and offers free consultations. Typically, the company charges a flat-rate fee upfront, which can vary widely per individual customer but generally starts around $3,000. The price may change if additional services are required along the way.
Best for Large Tax Debts and Businesses: Larson Tax Relief
PROS
1-15-day money-back guarantee for new customers
2-Can help resolve complex business tax situations such as tax liens or accounts receivable levies
3-Free consultations
CONS
1-15-day guarantee may be too short for serious tax debt issues
2-No bilingual service
3-Minimum $20,000 tax debt required
Why we chose this company:
Larson Tax Relief’s extensive range of business tax services, covering payroll and federal tax issues, conflicts with revenue officers, and worker classification problems, positions them as an excellent choice for business and corporate tax debt relief.
Larson Tax Relief handles various tax debt relief services, from personal IRS tax debt relief to corporate tax assistance, and even assistance in delaying or preventing bank levies.
In addition to the numerous positive online reviews, Larson stands out for its business tax services. The company can manage almost everything related to business tax preparation, including paperwork for payroll taxes and corporate income taxes. This proves particularly helpful for small business owners or those with smaller accounting departments in need of support.
Larson provides free consultations but requires a minimum of $20,000 in tax debt to take on your case.
According to Larson, they charge a minimum fee of $200 for filing tax returns, between $250 and $500 for research and discovery, and a minimum fee of $1,750 for representation or power of attorney services. On average, working with Larson Tax Relief costs around $2,400.
Larson offers a 15-day money-back guarantee for all new customers—although it’s on the shorter side compared to other companies offering 30 days. It might not be as useful if your case takes weeks to resolve.
HIGHLIGHTS
Minimum debt required $20,000
Certifications and memberships NAEA
Cost Starts at $2,400
BBB rating A+
Best Mobile App: Optima Tax Relief
PROS
1-Proprietary app provides a free assessment of collection notices
2-Free consultations
3-Clearly outlined tax resolution process provides realistic expectations on the outcome of your case
CONS
1-Minimum $10,000 tax debt required
2-15-day money-back guarantee shorter than competitors’
Why we chose this company:
Optima’s unique app, allowing users to file a free tax extension and guiding them through the steps when receiving an IRS notice, positions it as the industry’s best mobile app.
Optima Tax Relief covers every type of IRS and state tax relief option, from payment plans to “currently not collectible” filings. Their team includes various tax professionals, such as enrolled agents, tax attorneys, and accountants.
Notably, Optima has its proprietary app that not only provides free assessments of any IRS collection notice but also assists in filing an extension on your tax filing deadline.
Optima also provides individual and business tax preparation services along with free consultations. During the consultation, the company outlines its two-step approach: 1) setting up a protection plan by filing paperwork to temporarily pause any immediate IRS action—typically takes up to four weeks—and 2) providing you with a case summary.
Optima’s investigation fee typically amounts to around $295, and a minimum tax debt of $10,000 is required.
HIGHLIGHTS
Minimum debt required $10,000
Certifications and memberships NAEA, IRS-approved Continuing Education Provider, NATP
Cost Starts at $295
BBB rating A+
Why we chose this company:
Optima has a unique app, allowing users to file a free tax extension and guiding them through what to do when they receive an IRS notice, making it the company with the best mobile app in the industry.
Optima Tax Relief covers every type of IRS and state tax relief option, from payment plans to “currently not collectible” filings. The company’s team includes various tax professionals, such as enrolled agents, tax attorneys, and accountants.
Notably, Optima has its proprietary app that not only provides free assessments of any IRS collection notice but also helps you file for an extension on your tax filing deadline.
Optima also offers individual and business tax preparation services along with free consultations.
During that free consultation, the company outlines its two-step approach: 1) setting up a protection plan involving filing paperwork to pause any immediate IRS action against you—typically taking up to four weeks—and 2) providing you with a case summary.
Optima’s investigation fee is generally around $295, and you need to have a minimum.
HIGHLIGHTS
Minimum debt required $20,000
Certifications and memberships NAEA
Cost Starts at $2,400
BBB rating A+
Best Mobile App: Optima Tax Relief
PROS
1-Proprietary app provides free assessment of collection notices
2-Free consultations
3-Clearly outlined tax resolution process provides realistic expectations on the outcome of your case
CONS
1-Minimum $10,000 tax debt required
2-15-day money-back guarantee shorter than competitors’
Why we chose this company:
Optima has a unique app, letting users file a free tax extension and guiding them on what to do when they get an IRS notice, making it the company with the best mobile app in the industry.
Optima Tax Relief covers every IRS and state tax relief option, from payment plans to “currently not collectible” filings. The company’s staff includes various tax professionals, such as enrolled agents, tax attorneys, and accountants.
Notably, Optima’s proprietary app not only offers free assessments of any IRS collection notice but also assists in filing an extension on your tax filing deadline.
Optima also provides individual and business tax preparation services along with free consultations. During that free consultation, the company outlines its two-step approach: 1) setting up a protection plan by filing paperwork to pause any immediate IRS action against you—typically taking up to four weeks—and 2) providing you with a case summary.
Optima’s investigation fee is generally around $295, and you need to have a minimum tax debt of $10,000.
HIGHLIGHTS
Minimum debt required $10,000
Certifications and memberships NAEA, IRS-approved Continuing Education Provider, NATP
Cost Starts at $295
BBB rating A+
Best for Bilingual Services: Tax Defense Network
PROS
1-Wide range of tax debt relief and preparation services
2-Robust tax education resources
3-Fully bilingual services
CONS
1-Three-day money-back guarantee
Why we chose this company:
Tax Defense Network is the go-to tax relief company for bilingual services, with availability both online and on the phone for both Spanish and English speakers.
Tax Defense Network stands out by offering fully bilingual (Spanish and English) customer service, accessible through both online and phone channels.
The company also accommodates tax debt as low as $5,000 in some cases, making it more approachable than many competitors.
In addition to the comprehensive range of IRS and state tax debt relief options, such as payment plans, offers in compromise, innocent spouse relief, and others, Tax Defense Network provides specialized business tax solutions. This includes closing corporate filing services for businesses needing to permanently shut down.
The company’s educational resources surpass those of other companies, featuring offer-in-compromise and tax withholding calculators.
Despite the company’s provision of free consultations, its three-day money-back guarantee is comparatively shorter than competitors—most companies on this list, for instance, offer at least 15 days.
Nevertheless, its extensive certifications and memberships in national tax professional organizations support the numerous positive reviews from current and former customers.
HIGHLIGHTS
Minimum debt required: $5,000
Certifications and memberships: NAEA, American Society of Tax Problem Solvers (ASTPS), NATP, Association of International Certified Public Accountants (AICPA)
Cost: Starts at $250
BBB rating: A+
Other Tax Relief Companies We Considered
Here are a few companies we considered, but they didn’t quite make it to our list. While they may not be the perfect fit for every situation, they still provide services that could be valuable for individuals, depending on their specific circumstances.
Precision Tax Relief
PROS
1-30-day money-back guarantee
2-No-interest payment plans for all clients
3-Free consultations
CONS
No audit representation
Precision Tax Relief primarily focuses on providing relief for IRS tax debt but can also handle state tax issues. Notably, it does not offer audit representation for its clients.
Beyond tax debt relief, Precision assists in securing wage garnishment and levy releases, offering significant financial relief if approved by the IRS. The company also provides individual and business tax preparation services, aiming to prevent tax debt issues from arising in the first place.
Precision sets itself apart by clearly stating that any payment plans agreed upon are always interest-free. Additionally, its 30-day money-back guarantee is quite generous, considering that many—though not all—tax debt issues can be resolved within three to four weeks.
While fees and rates are not upfront in their advertising, they are always provided during the free consultations.
1-Minimum debt required: $10,000
2-Certifications and memberships: NAEA, ASTPS, AICPA
3-BBB rating: A+
Victory Tax Lawyers
PROS
1-Flat-rate pricing
2-Free consultations
CONS
1-No money-back guarantee
2-Minimum $25,000 tax debt required
Victory Tax Lawyers specializes in addressing tax controversy issues, particularly in preventing or resolving tax-related criminal charges, as opposed to general debt relief. However, the firm does handle common IRS tax debt relief options such as compromise and installment agreements (excluding innocent spouse relief).
Victory Tax extends its assistance to both individuals and businesses, offering services such as tax preparation, tax levy and lien defense, and audit representation. Notably, it also aids in Report of Foreign Bank and Financial Accounts (FBAR) filings, a requirement if you hold bank accounts in countries other than the U.S.
It’s worth noting that Victory Tax exclusively takes on cases involving a minimum of $25,000 in tax debt, a threshold higher than that of other companies on this list.
- Minimum debt required: $25,000
- Certifications and memberships: Association of American Tax Problem Solvers (ASTPS)
- BBB rating: A+
Tax Relief Guide
Navigating the realm of tax relief options can be quite overwhelming. This guide to tax relief is here to provide explanations of fundamental concepts you need to know, along with information on the various programs that tax relief companies can assist you in applying for.
What are tax relief services?
Tax debt relief encompasses various measures and strategies designed to assist individuals in managing or reducing their tax liability, particularly when seeking assistance with IRS debt and state tax debt.
While the term initially referred to policies aimed at easing the tax burden for both companies and individuals, it now commonly encompasses payment plans, settlements (known as offers-in-compromise), and wage garnishments.
While similar plans are offered by both state and federal tax collectors, regulations can significantly vary at the local level. It’s essential to check with your state’s comptroller’s office to understand the specific options available to you.
It’s crucial to recognize that negotiating options for repaying taxes directly with the IRS is open to anyone. However, there are instances when seeking professional assistance can prove to be a valuable investment.
Tax relief companies, also known as tax resolution firms, leverage their knowledge of federal and state law to review your documents and financial situation, identifying the best alternatives. The process typically involves filing paperwork and acting as a liaison with the IRS on your behalf.
Some companies have tax attorneys on staff who, in particularly complex cases, can serve as intermediaries in your negotiations with the government.
How do tax relief companies work?
Tax relief companies act as intermediaries with the IRS on behalf of taxpayers to reduce the amount of overdue taxes. However, it’s important to note that most of the tasks performed by tax relief companies can be handled by individuals through direct communication with the IRS.
The significant distinction lies in the expertise of professionals employed by reputable tax relief companies. These experts have years of experience and a deep understanding of tax law, making them adept at navigating complex cases involving substantial debt.
If your tax debt issues are relatively straightforward, such as missing last year’s tax payments, reaching out to the IRS directly may be sufficient, as there’s little that these companies can do that you can’t.
However, if your tax debt case is intricate, involving multiple bank accounts, assets, years of unpaid taxes, or other complexities, a tax relief company can be valuable. They can help by sorting through your paperwork and identifying the best available options. In rare cases, they may even discover details that the IRS overlooked and negotiate a lower tax bill.
As a general guideline, if your tax debt is under $10,000, attempting to negotiate with the IRS independently might be more practical. Many tax relief companies typically have a minimum debt requirement, often set at $10,000 or more. Additionally, for debts under this threshold, paying the IRS in installments could be a more cost-effective approach than engaging tax relief services.
It’s essential to recognize that individual circumstances vary, and if you feel the need for tax assistance, numerous tax relief firms offer free consultations to help you explore your options.
How much do tax relief companies charge?
Given the intricate nature of tax relief services, it’s safe to say that costs can vary. There are two common pricing models: a percentage of the debt owed and flat hourly rates. The most cost-effective choice will depend on the size of your tax debt and the complexity of your case.
For companies operating on a percentage basis, rates typically fall within the range of 10% to 15% of your tax debt. For example, if your debt is $10,000 (often the required minimum debt for many companies), you can expect to pay a minimum of $1,000 to $1,500.
On the flip side, a company charging a flat hourly rate might be more affordable if the amount you owe is high but your case is relatively straightforward. The average hourly rate for tax relief companies can range from $240 to $1,000.
Some companies have individual pricing for different services. For instance, a firm may charge a flat fee of $300 for a basic investigation but upwards of $1,000 if you choose to pursue a specific tax relief option, such as an offer in compromise.
For these reasons, it can’t be overstated how important it is to ask for as much information as a company is willing or able to disclose before contracting its services. Ideally, you’ll want to get quotes in writing, including the possibility of any additional fees and all available payment options.
Common tax problems
can involve issues stemming from mistakes made during filing or simply not filing a tax return at all. Below, we’ll explore some explanations of the most common tax issues that tax relief companies and tax agencies can handle for you:
Back taxes
refer to taxes owed due to unfiled tax forms or mistakes made during filing. These can accumulate interest, causing your tax debt to grow to unmanageable levels. The IRS publishes interest rates for penalties quarterly; you can check the agency’s website for the most up-to-date information.
A great way to steer clear of incurring back taxes is by using tax preparation software. Make sure to check out our article on the best tax software if you need a helping hand.
Wage garnishments
When your tax bill is due, the IRS will send you a series of collection notices. If you ignore these notices for long enough, the IRS may decide to collect portions of your debt directly from your wages by garnishing them.
Your employer receives Publication 1494 to help determine the portion of your wages that is exempt from garnishment based on your marital status and number of dependents. Garnishment usually continues until the debt is satisfied, but tax relief companies may be able to assist by securing alternative payment arrangements.
Tax liens
Similar to wage garnishment, a tax lien is a public notice issued by the IRS to financial institutions and other relevant parties, declaring their right to collect any proceeds from personal property sales before other creditors.
Tax levies
A more drastic variation of a tax lien, a tax levy means that the IRS is enforcing its legal right to seize your property to pay your debt.
Tax audits
If the IRS notices irregularities in your taxes, the agency may opt to audit you. In the fiscal year 2022, only 0.38% of income tax returns underwent an audit.
Tax debt relief options
The IRS provides various tax debt relief options that are accessible to everyone. Similar programs may be offered by state agencies for local taxes. Before considering tax relief companies, it’s advisable to check the IRS website or consult with a representative over the phone to explore available options.
It’s important to note that many services offered by private tax resolution companies involve reviewing your case details and suggesting the best option based on the information at hand. They don’t have access to information you couldn’t obtain yourself, and specific outcomes cannot be guaranteed.
If your tax situation is relatively straightforward, involving single income sources and no complex investments, you might find it more beneficial to communicate directly with the IRS. Here are some of the tax debt resolution options provided by the IRS:
Offers in compromise
Offers in Compromise (OIC) provide an opportunity to settle your tax debt for less than the full amount owed. In this arrangement, the IRS assesses factors like your income, expenses, assets, and ability to pay to determine your eligibility.
According to the IRS, offers in compromise are only entertained if there’s a belief that the reduced amount is the maximum collectible “within a reasonable amount of time.” This makes it one of the less frequently offered options for tax settlement.
Innocent spouse relief
Innocent spouse relief comes into play when your current or former spouse makes mistakes or omissions while filing taxes. This relief exempts you from tax penalties that could arise from these errors, provided the IRS finds that you had no reasonable way of knowing about the omissions.
Installment agreement
If you don’t have the funds to settle your tax debt in a lump sum, the IRS might provide an installment agreement, allowing you to pay off your debt gradually. Two types of installment agreements exist: short-term (lasting 180 days or less) and long-term (involving monthly payments until your debt is settled).
There’s no specific debt threshold for applying for an installment agreement, but online applications are accepted for amounts up to $50,000 (for long-term agreements) or $100,000 (for short-term agreements). This makes it a relatively common and accessible option for individuals seeking direct negotiations with the IRS.
Penalty Abatement
Also referred to as “first-time penalty abatement,” this tax relief option is typically applicable to minor tax penalties, like failing to make a payment on a single tax return or missing a filing deadline.
The primary eligibility requirement for this relief is having no penalties in the preceding three tax years. However, you must have filed or at least requested an extension for your current taxes. preceding three tax years. However, you must have filed or at least requested an extension for your current taxes.
Currently not collectible
Currently not collectible” (CNC) status means that both you and the IRS agree that, while taxes are owed, you are currently unable to pay them. Generally, you can apply for CNC status when paying your taxes represents an undue burden on your necessary living expenses. This includes scenarios such as being unable to pay essential bills like utilities or rent, and not having enough money left over for basic groceries due to your tax debt payment.
If the IRS grants you CNC status, your finances are reviewed every year until it determines that you can pay your debt. Additionally, any future tax refunds you receive may be used to pay down your debt while in CNC status.
Other services offered by tax relief companies
Audit Defense
Some licensed tax professionals offer guaranteed assistance if your tax returns are audited. Think of it like car insurance: You pay the tax professional an additional amount upfront, and they agree to help you resolve any tax audits that might arise in the future (usually up to three years).
Warning about tax relief scams
Tax debt can be incredibly stressful, making any offer to eliminate it seem enticing. However, as the Federal Trade Commission warns, not all tax relief companies have your best interests at heart.
Tax debt relief companies red flags
Because only the IRS can determine whether you qualify for relief programs, you should steer clear of any tax relief company vowing to lower your debt or making claims that seem too good to be true.
Assurances that you qualify for one or more programs—without even taking a look at your case—or promises that a firm can settle your tax debt in a specific time frame should raise red flags right away.
Many fraudulent companies don’t even bother filing the necessary paperwork to apply for relief programs. Instead, they lie to customers and pocket their money without having done any work. According to FTC reports, some companies have even made unauthorized charges to customers’ credit cards long after the cases were closed.
Here are some red flags to look out for when evaluating tax relief companies:
1-Company representatives make guarantees or promises without looking at your case details.
2-The company fails to ask specifics about your tax debt situation.
3-Upfront payment is demanded in exchange for “guaranteed” results.
4-The company contacts you first by cold call, unsolicited mail, and/or email.
5-The company uses delay tactics, such as asking you for the same documents over and over again.
Other IRS-related scams
In addition to tax relief scams, you should also be aware of other IRS-related scams, such as the IRS text message scam that the agency warned about in a press release last September. A reputable tax relief company could even provide you with guidance on how to avoid these scams.
Trustworthy tax relief companies will avoid making specific promises and be transparent about their costs and processes upfront, often offering free consultations.
Make sure that the company you choose is accredited with one or more tax professional organizations such as the National Association of Tax Professionals, the National Association of Enrolled Agents, and the Association of International Certified Professional Accountants to reduce the chances of falling for a scam.
Alternatives to using tax debt relief companies
Direct negotiation with the IRS
As mentioned above, if your tax debt is comparatively small — generally, less than $10,000 — you might want to consider negotiating with the IRS yourself. If filling out your tax returns is a relatively straightforward process, applying for any of the IRS’s tax debt relief programs could be considerably cheaper than paying for a tax debt relief company’s services.
Tax relief lawyers
On the other hand, if you feel your tax debt situation is more complicated, working directly with tax relief lawyers might be the way to go. Be aware that some, but not all, tax debt relief companies employ lawyers. A tax lawyer is far more specialized than a certified public accountant or an enrolled agent, which can be useful when your case might lead to criminal charges.
Tax debt relief programs
The IRS Fresh Start Program — known as the Fresh Start Initiative — is a set of guidelines aimed at making tax debt relief more accessible. Instead of offering a specific type of relief, the Fresh Start Initiative lowers existing requirements to qualify for different IRS relief programs.
Tax debt relief companies evaluate the details of your case and check Fresh Start guidelines, helping you find the relief options that you qualify for.
The IRS also offers a number of tax assistance programs designed to help individuals file their taxes on time, among other things. Check out:
2-Volunteer Income Tax Assistance (VITA)
3-Tax Counseling for the Elderly (TCE)
4-Armed Forces Tax Council (AFTC)
5-Interactive Tax Assistant (ITA)
8-IRS.gov
Latest News About Tax Relief
Although the IRS was previously letting past-due tax bills slide during the pandemic, the agency is now bringing back collection efforts.
From bribes to March Madness pools, check out our article on the 13 weird things the IRS considers taxable.
Also, take a look at our article on the Fair Tax Act to learn more about the bill and how a national sales tax would look.
How We Chose the Best Tax Relief Companies
If you’re seeking professional help with your tax debt problems, considering a tax relief company is probably on your radar. While negotiating with the IRS independently is entirely possible, seeking assistance from a professional can often offer greater peace of mind. We used the following criteria to select the top tax relief companies:
Availability
When folks consider tax debt relief, the first thing that comes to mind is often the IRS, a federal agency. However, tax debt can also affect individuals on the state level. We selected companies capable of handling both federal and state tax issues, and that operate nationwide.
Cost
We selected companies that provide free consultations and flexible payment plans, ensuring their services are accessible to everyone who needs them
Credibility
To make sure you partner with reputable companies, we examined their records with the Better Business Bureau and customer reviews on platforms like Trustpilot.
We also specifically chose companies holding at least one certification, accreditation, or membership in major tax professional organizations.
Summary of Money’s Best Tax Relief Companies
1-Anthem Tax Services – Best Guarantee
2-Optima Tax Relief – Best Mobile App
3-Larson Tax Relief – Best for Large Tax Debts and Businesses
4-Community Tax Relief – Most Affordable Fees
5-Tax Defense Network – Best for Bilingual Services