Best 10 Tax Relief Companies of 2024: Fees & Features

Significant tax debt can pose a significant challenge, particularly when financial difficulties. Thankfully, there are professional solutions for individuals with substantial IRS debt.

Tax relief firms have a team of tax experts ready to assist you in negotiating payment arrangements with the IRS and state tax authorities. These arrangements may include installment plans or temporarily halting collections when facing financial hardship, known as "currently not collectible" status

Continue reading to explore the top tax relief companies, assessed based on their accessibility, pricing, and customer feedback.

>> Get Started With Larson Tax Relief >>

Top 10 Picks for Tax Relief Companies

• Larson Tax Relief – Best Tax Relief Service Overall
• Anthem Tax Services – Best for State Taxes
• Community Tax Relief – Most Affordable Fees
• Optima Tax Relief – Best for IRS Audit Representation
• Tax Defense Network – Best for Bilingual Services
• Fortress Tax Relief – Best for Large Tax Debt
• Precision Tax – Best for Transparency and Attention
• Liberty Tax - Best for Avoiding Tax Debt in the Future
• Tax Hardship Center – Best For Tax Preparation
• TaxSlayer - Best Tax Relief Software

Larson Tax Relief – Best Tax Relief Service Overall

Larson Tax Relief offers a broad array of business tax solutions, addressing issues like payroll and federal taxes, conflicts with revenue officers, and worker classification problems, making them a top choice for corporate tax debt relief.

Larson Tax Relief provides various tax debt relief services, handling personal tax debts to the IRS, corporate tax aid, and assistance in postponing or preventing bank levies.

With numerous positive customer reviews, Larson excels in business tax services, handling tasks such as payroll tax paperwork and corporate income tax preparation, particularly beneficial for small business owners or those with limited accounting resources.

Pros

• New customers receive a 15-day refund policy
• Assistance available for intricate business tax problems like tax liens or accounts receivable levies
• Free consultations provided

Cons

• The 15-day guarantee might not suffice for significant tax debt problems
• Bilingual support is unavailable
• A minimum tax debt of $20,000 is necessary

>> Consider Larson Tax Relief! >>

Anthem Tax Services – Best for State Taxes

Anthem Tax Services provides both IRS tax debt relief and corporate tax preparation assistance. The company helps with applying for IRS tax debt relief programs, featuring options such as Offers in Compromise (OIC), relief for innocent spouses, and status as "Currently Not Collectible."

Additionally, Anthem offers help with filing for income seizure and tax levy release, which sets it apart from competitors.

Anthem's money-back guarantee is among the best in the tax debt relief industry. They offer a full refund if they fail to secure any resolution from the IRS, such as payment reductions or debt forgiveness. However, the guarantee does not cover the initial investigation fee, typically starting at $350, depending on your case details.

Pros

• Enjoy a money-back guarantee with no set time limit
• Experience quick resolution, with some cases solved within a week
• Access specialized tax relief services tailored for truck drivers

Cons

• Encounter issues with communication on cases extending beyond a week

>> Consider Anthem Tax Services! >>

Community Tax Relief – Most Affordable Fees

Community Tax provides complimentary consultations and offers investigation fees ranging from $295 to $500, making their services affordable.

Specializing in IRS tax debt relief, Community Tax assists with various applications, including installment agreements and offers in compromise, but has limited state tax support.

Community Tax stands out by offering bilingual assistance online and through their representatives. Beyond tax debt relief, they provide tax filing, bookkeeping, and business accounting services. Their A+ BBB rating reflects positive reviews and prompt responses to customer complaints.

Pros:

• The provider offers services in both English and another language
• Initial fees are budget-friendly
• Services for tax planning assist in minimizing potential future tax problems

Cons:

• Lack of clear upfront information regarding fees
• Options for relieving state tax debt are restricted

>> Consider Community Tax Relief! >>

Optima Tax Relief – Best for IRS Audit Representation

Optima Tax Relief stands out in the industry for its exceptional mobile app, enabling users to request a tax extension and understand IRS notices.

Optima Tax Relief offers a comprehensive range of IRS and state tax relief solutions, covering payment plans and "currently not collectible" filings. Its team includes various tax professionals like enrolled agents, tax attorneys, and CPAs.

Optima's exclusive app provides free assessments of IRS collection notices and assists in filing tax deadline extensions.

Pros

• The proprietary app provides a free assessment of collection notices
• Free consultations are provided
• A transparent process guides clients through their tax resolution journey, setting clear expectations

Cons

• A minimum tax debt of $10,000 is required
• The 15-day money-back guarantee is shorter than that of competitors

>> Consider Optima Tax Relief! >>

Tax Defense Network – Best for Bilingual Services

Tax Defense Network offers bilingual customer service both online and over the phone, catering to Spanish and English speakers. It's recognized for accepting tax debt as low as $5,000, enhancing accessibility compared to competitors. 

Additionally, besides standard IRS and state tax relief options, Tax Defense Network provides specialized business tax solutions like close corporate filing services. Its educational resources, including offer-in-compromise and tax withholding calculators, surpass those of other companies.

Pros

• Offers a variety of tax debt relief and preparation services
• Provides comprehensive tax education materials
• Offers fully bilingual services

Cons

• Provides a 3-day money-back guarantee

>> Use Tax Defence Network! >>

Fortress Tax Relief – Best for Large Tax Debt

Tax relief companies often determine fees based on a percentage of your total IRS tax debt. This approach can result in high costs, especially for larger debts, without necessarily reflecting the complexity of resolving them. For instance, a $20,000 debt may not require twice the effort of resolving a $10,000 debt.

Fortress Tax Relief offers a unique pricing model, estimating fees based on the anticipated time needed. While attorney hourly rates vary, Enrolled Agents typically charge between $100 and $200 per hour. This approach often results in lower costs for clients with significant tax debt compared to percentage-based fee structures. It's advisable to obtain quotes from multiple companies for comparison.

Working with Fortress Tax Relief also includes benefits like a robust customer service guarantee. If you have an active case, the company commits to responding to your inquiries within two business days. Failure to meet this commitment results in a $100 account credit for each subsequent instance.

Pros

• Charges flat fees instead of percentages
• Guarantees satisfactory customer service with a money-back policy
• Manages state tax debts across all 50 states

Cons

• Requires a minimum tax debt exceeding $10,000
• Lacks accreditation from industry organizations
• Provides limited business-related services

>> Consider Fortress Tax Relief! >>

Precision Tax – Best for Transparency and Attention

Precision Tax Relief stands out among reputable tax relief companies, excelling in various aspects according to our analysis. Notably, it offers a 30-day money-back guarantee, one of the longest in the industry.

The company determines pricing through a flat-rate fee discussed in a complimentary consultation. Your fee remains unchanged unless the scope of work alters due to undisclosed information during the consultation. Payment options include a single lump-sum or a zero-interest payment plan.

There's no minimum debt requirement for clients. However, after conversing with their customer service team, it's apparent that their base service fee may not benefit taxpayers owing less than $10,000 without additional factors. They accept cases only if potential debt relief justifies the service fees for clients.

Pros

• Provides a 30-day refund policy
• Offers a fixed-rate fee covering all services
• Accessible customer support via phone, text, email, and live chat
• Established presence since 1967

Cons

• Doesn't manage individual state tax debts separately
• Lacks representation for tax audits
• Limited online support resources

>> Consider Precision Tax Relief! >>

Liberty Tax - Best for Avoiding Tax Debt in the Future

Liberty Tax provides various preparation tools to prevent future tax liabilities. As tax filing becomes more digital, individuals may face challenges. Liberty Tax stands out for its assistance in avoiding tax debt through free tax return reviews, online filing support, and other services.

For tax debt relief services, Liberty Tax collaborates with Community Tax, a reputable provider offering programs for federal and state tax debt, including salary deduction, payroll taxes, extensions, tax liens, and more.

Pros

• Ensures fast page loading
• Addresses self-employment issues
• Conducts thorough review
• Provides excellent mobile accessibility

Cons

• Offers subpar user experience
• Lacks comprehensive help content
• Provides limited context-sensitive assistance
• Features some non-standard navigation

>> Consider Liberty Tax! >>

Tax Hardship Center – Best For Tax Preparation

Tax Hardship Center earned its place on this list thanks to excellent customer feedback from the Better Business Bureau (BBB). They provide help with back taxes, tax liens, penalties, payroll tax issues, and paycheck withholding, among other tax-related challenges.

Additionally, the company provides various tax preparation services, including filing past and current taxes for individuals, businesses, and payroll taxes.

Tax Hardship Center provides a 14-day refund policy. If dissatisfied with their services within the initial two weeks, clients can receive a full refund of all fees paid. Furthermore, the amount of tax debt they can handle is unlimited.

Pros

• Enjoy a complimentary consultation
• Access top-notch tax preparation services
• No obligation with minimum tax debt

Cons

• Requires a minimum debt of $10,000
• Benefit from a 14-day money-back guarantee

>> Consider Tax Hardship Center! >>

TaxSlayer - Best Tax Relief Software

TaxSlayer originated in 1965 as Rhodes-Murphy & Co. in Augusta, Georgia. It transitioned from traditional tax preparation services to specialized tax software for professionals. Today, TaxSlayer provides easy-to-use software for individuals to conveniently file taxes at home.

Tax debt, including additional taxes, penalties, and interest, can complicate dealings with the IRS. However, TaxSlayer aims to aid individuals during this stressful period.

Pros

• Offers a self-service option for tax relief
• Affordable rates available
• No minimum debt threshold required

Cons

• No reimbursement provided for program usage
• Learning curve associated with software utilization
• Varied and generally low online ratings

>> Consider TaxSlayer! >>

Our Ranking Methodology for the Best Tax Relief Services

In choosing the top tax relief company, we meticulously assessed various factors. Our selection criteria aimed to identify reputable and reliable firms. Below outlines the criteria used to evaluate the best tax relief companies:

• Reputation and Credibility: Prioritizing the company's reputation and credibility, we looked at its industry standing, longevity, and reviews from reliable sources.
• Licensing and Accreditation: We emphasized companies with proper licensing and accreditation from relevant regulatory bodies to ensure adherence to industry standards.
• Expertise and Qualifications: Assessing the qualifications of staff including tax attorneys, enrolled agents, and accountants was crucial to ensure competency.
• Range of Services: We evaluated companies based on the breadth of services offered, from negotiation to IRS representation, showcasing their ability to address diverse tax issues.
• Customized Solutions: Seeking personalized approaches, we favored companies capable of tailoring solutions to individual client needs.
• Transparent Pricing: We sought transparent pricing structures without hidden fees to foster trust and confidence.
• Customer Service and Communication: Exceptional customer service and prompt communication were key indicators of reliability.
• Success Rate: We considered companies' track records in successfully resolving tax issues for clients.
• Ethical Practices: Ethical standards were non-negotiable, and we ensured companies adhered to them in all dealings.
• Client Satisfaction: Client feedback and testimonials provided insights into overall satisfaction and the company's ability to deliver results.

>> Take Charge of Your Taxes With Larson! >>

Best Tax Relief Services – Buyer’s Guide

What Is Tax Relief?

Tax relief encompasses various strategies aiding individuals in managing or diminishing their tax obligations. Originally, it aimed to alleviate tax burdens for both entities and individuals, but now commonly includes payment arrangements, settlements, and wage garnishments.

While similar plans are offered by state and federal tax authorities, regulations vary by locality, necessitating checking with your state's comptroller's office for available options. Negotiating directly with the IRS is possible for anyone, but there are instances where hiring professionals proves beneficial.

Tax relief firms, also referred to as tax resolution companies, leverage their expertise in federal and state regulations to assess your financial status and documents, determining the optimal course of action. This typically involves paperwork filing and representing you in communications with the IRS.

Some firms enlist tax attorneys who can serve as intermediaries in complex negotiation scenarios with the government.

How Do Tax Relief Companies Work?

Tax relief firms collaborate with the IRS to lessen owed back taxes for taxpayers. Individuals can also communicate directly with the IRS to handle tax matters.

Professionals at reputable tax relief companies, equipped with extensive experience in tax law, adeptly handle complex cases involving substantial debts.

For straightforward cases like missed tax payments from the previous year, contacting the IRS directly may suffice, as there's little additional assistance these companies can offer.

However, for intricate tax scenarios involving multiple bank accounts, assets, and years of unpaid taxes, tax relief firms excel at organizing paperwork and determining optimal solutions, sometimes uncovering overlooked details and negotiating reduced tax liabilities.

If your tax debt amounts to less than $10,000, negotiating with the IRS independently might be preferable, as many tax relief companies require a minimum debt threshold of $10,000. Additionally, paying the IRS in installments could be more beneficial than incurring fees for tax relief services.

Despite varying circumstances, individuals seeking tax assistance, regardless of debt size, can explore free consultations offered by numerous tax relief firms.

Common Tax Problems

Tax problems encompass various issues arising from errors made during tax filing or failure to file altogether. Here are explanations of common tax issues addressed by tax relief firms:

Back Taxes

Taxes that remain unpaid due to unfiled forms or errors during filing are referred to as back taxes. These unpaid taxes accumulate interest over time, potentially leading to a significant increase in your tax debt. The IRS updates penalty interest rates quarterly, so it's crucial to review their website for the latest updates regularly.

Utilizing tax preparation software is a practical approach to prevent the accumulation of back taxes. If you require assistance with your tax filing process, consider exploring our guide on top tax software options.

Wage Garnishments

When taxes are owed, the IRS will send collection notices. Ignoring these notices may lead to wage garnishment, where a portion of your earnings is taken directly by the IRS.

Employers use Publication 1494 to calculate the exempt portion of your wages from garnishment, depending on your marital status and dependents. Typically, garnishment lasts until the debt is paid, but Tax Relief providers can help negotiate alternative payment plans.

Tax Liens

Like wage garnishment, the IRS issues a public notice to financial institutions and relevant parties, stating their authority to collect proceeds from personal property sales ahead of other creditors.

Tax Levies

A tax levy, a more severe form of a tax lien, indicates that the IRS is exercising its legal authority to take your property to settle your debt.

Tax Audits

If the IRS detects inconsistencies in your tax filings, they might opt to conduct an audit. While audits can happen to anyone, higher incomes individuals, basically those who are earning $10 million or above, are at the more risk of being audited.

>> Consider Larson Tax Relief >>

How Much Do Tax Relief Companies Charge?

Tax relief services can be complex, leading to varied costs. Pricing typically follows two models: a percentage of the owed debt or flat hourly rates. The optimal choice depends on your debt size and case complexity.

Percentage-based companies usually charge 10% to 15% of your tax debt. For a $10,000 debt, expect to pay $1,000 to $1,500.

Hourly rate companies may be cheaper for large debts with straightforward cases, with rates averaging $240 to $1000.

Some companies offer tailored pricing. For instance, basic investigations may cost $300, while specific options like an offer in compromise (OIC) could exceed $1,000.

It's crucial to request comprehensive information before hiring a company, including written quotes, potential extra fees, and payment methods.

Tax Debt Relief Options

The IRS provides various options for tax debt relief, available directly to taxpayers. Similar programs may be offered by state agencies for local taxes. It's advisable to check the IRS website or contact a representative for details before engaging with tax relief companies.

Most private tax resolution services analyze your case details and suggest the best options based on available information, without access to additional resources. They cannot guarantee specific outcomes.

For straightforward tax situations, like single income sources or simple investments, direct communication with the IRS is often more effective. Here are some tax debt resolution options offered by the IRS:

Offers in Compromise

Offers in compromise provide an option to resolve your tax debt for an amount less than what you owe. The IRS evaluates factors like your financial situation, income, expenses, and assets to decide if you qualify.

The IRS only entertains offers in compromise if it believes that collecting the reduced amount is the best option "within a reasonable amount of time." As a result, this method isn’t frequently offered for settling tax debts.

Innocent Spouse Relief

Tax Relief known as innocent spouse relief is applicable if your spouse, whether current or former, makes errors or omissions while filing taxes. It absolves you from any tax penalties stemming from these mistakes, provided the IRS confirms your lack of awareness regarding the omissions.

Installment Agreement

If you can't pay your tax debt all at once, the IRS might offer you a payment plan called an installment agreement. There are two types: short-term (lasting 180 days or less) and long-term (with monthly payments until your debt is paid off).

There's no fixed debt amount required to apply for an installment agreement. You can apply online for amounts up to $50,000 (for long-term agreements) or $100,000 (for short-term agreements), making it a popular choice for those negotiating with the IRS independently.

Penalty Abatement

This Tax Relief option, also referred to as "first-time penalty abatement," is typically offered for minor tax penalties like late payments or missed filing deadlines. To qualify, you must have had no penalties in the past three tax years and have filed or requested an extension for your current taxes.

Currently Not Collectible

Presently, being in not collectible (CNC) status signifies mutual agreement between you and the IRS that although taxes are owed, you're currently unable to pay them. Typically, you can request CNC status when paying taxes poses a significant burden on your essential living expenses, such as utilities, rent/mortgage, or basic groceries due to your tax debt.

Once granted CNC status by the IRS, your financial situation undergoes yearly review until it deems you capable of repaying your debt. Additionally, any future tax refunds could be applied towards diminishing your debt during the CNC status period.

>> Take Charge of Your Taxes With Larson! >>

Other Services Offered by Tax Relief Companies

Audit Defense

Licensed tax professionals provide assured support if your tax returns undergo an audit, similar to car insurance. You pay them an extra fee upfront, and they commit to aiding you in resolving any tax audits within a specific timeframe, typically up to three years.

Alternatives to Using Tax Debt Relief Companies

Direct Negotiation With the IRS

If your tax debt is relatively small, typically under $10,000, you might prefer negotiating directly with the IRS. If filing your tax returns is straightforward, applying for IRS tax debt relief programs could be more cost-effective than using a tax relief company's services.

Tax Relief Lawyers

Alternatively, if your tax debt situation seems complex, collaborating with tax relief attorneys could be beneficial. It's important to note that while some tax relief firms utilize tax relief lawyers, not all do. Tax lawyers possess specialized expertise beyond CPAs or enrolled agents, particularly beneficial when facing potential criminal charges.

Tax Debt Relief Programs

The Fresh Start Initiative, previously called the IRS Fresh Start Program, simplifies tax debt relief access by adjusting eligibility requirements for various IRS relief programs. For instance, income calculations for offers-in-compromise eligibility have been altered.

• Offers paid within five months now require one year of future income, reduced from four years
• For offers paid within six to 24 months, two years of future income are now needed, down from five years

All offers need complete payment within 24 months from the acceptance date. Tax relief firms review your case details and assess Fresh Start guidelines to determine eligible relief options.

The IRS provides various tax assistance programs to aid individuals in timely tax filing and other related matters.

• IRS Free File
• Volunteer Income Tax Assistance (VITA)
• Tax Counseling for the Elderly (TCE)
• Armed Forces Tax Council (AFTC)
• Interactive Tax Assistant (ITA)
• “Where’s my refund?” tool
• IRS2GO app
• IRS.gov
• IRS telephone assistance

Warning About Tax Relief Scams

Tax debt causes significant stress, making offers to eliminate it appear attractive. However, the Federal Trade Commission (FTC) cautions that not all companies offering Tax Relief prioritize your best interests.

Tax Debt Relief Companies’ Red Flags

The IRS is the sole authority to determine if you're eligible for tax relief programs. Be cautious of any tax relief company promising debt reduction without IRS assessment.

Be wary of companies claiming qualification for relief programs or guaranteeing debt settlement without reviewing your case. Claims of swift debt resolution should also be treated skeptically.

Some fraudulent companies deceive customers by neglecting to file required paperwork for relief programs, and exploiting clients financially without fulfilling obligations. Instances have been reported where unauthorized charges were made to customers' credit cards post-case closure. 

Consider these warning signs when assessing tax relief companies:

• Representatives from the company make assurances without reviewing your case details
• Specifics about your tax debt situation are not requested by the company
• Upfront payment is required for promised outcomes
• The company initiates contact through cold calling, unsolicited mail, or email
• Delay tactics, such as continuously asking for the same paperwork, are employed by the company

Other IRS-Related Scams

Besides tax relief schemes, it's crucial to stay vigilant against other IRS-related frauds, like the recent IRS text message scam. A reliable tax relief firm can guide you on avoiding such scams.

Reputable tax relief companies refrain from making specific guarantees, provide clear information on costs and procedures upfront, and often offer complimentary consultations.

Ensure the company you select is accredited by tax professional organizations like the National Association of Tax Professionals (NATP), the National Association of Enrolled Agents (NAEA), and the Association of International Certified Professional Accountants (AICPA) to minimize the risk of being duped.

How to Avoid Tax Relief Scams

Sadly, scams are common in the tax relief industry. Many of them call for a hefty upfront fee, do the bare minimum, and leave you in more debt than before. Here’s how to avoid being scammed.

Requesting Full Payment Upfront

If a tax relief company demands payment for all fees upfront before a consultation, it's a red flag indicating their focus is solely on extracting money from you.

Not Offering a Money-Back Guarantee

If a tax relief company doesn't provide a money-back guarantee, it could be a red flag. Many tax relief firms offer this assurance to instill confidence in their services.

Claiming Unrealistic Services

If a company makes unrealistic promises, it's likely a scam. These promises might include claims to erase all your tax debt or absolve you from all tax obligations. Tax relief companies have limitations and can only assist to a certain extent in reducing your tax burden. They cannot completely erase all your tax debt.

>> Relief Awaits With Larson Tax Relief >>

Best Tax Relief Fund Services – FAQs

Are Tax Relief Companies Worth It?

Certainly, reputable tax relief firms justify their fees as they utilize certified experts skilled in negotiating with the IRS to assist you in qualifying for relief programs you may not have known about. These leading companies offer legal assistance to shield you from aggressive IRS measures and aid in preventing future debt through useful tax preparation resources. They typically provide a money-back guarantee if tax relief isn't achieved.

How Much Will the IRS Usually Settle For?

The IRS will determine an amount you can reasonably pay. You may still need to repay your entire debt, but at a later time or through installments. Alternatively, your debt may be reduced by the IRS if you qualify for programs like spouse relief or offers in compromise.

Does Tax Debt Relief Hurt Your Credit?

Tax Relief does not impact your credit score negatively because the IRS doesn't inform credit bureaus when you arrange payments. Your credit might be affected if you miss payments, as the IRS could initiate reports. However, as long as you meet your obligations, your credit score should stay stable or improve.

How Much Does a Tax Relief Company Cost?

Tax relief firms provide a complimentary consultation and request an initial investigation fee ranging from $295 to $500 to assess your liabilities. Following the investigation, further expenses will vary based on the complexity of your case and the necessary legal assistance. The total cost typically falls within the range of $1,700 to $6,000.

How Do I Get My IRS Debt Forgiven?

If you owe over $10,000 in overdue taxes and demonstrate an inability to pay within a reasonable timeframe, you may qualify for an offer in compromise or the IRS Tax Forgiveness program. Meeting eligibility criteria could result in a reduction of your tax debt by the IRS.

>> Unburden Your Tax Worries With Larson Tax Relief >>

Bottom Line 

If you're struggling to pay taxes owed to the IRS, a Tax Relief firm could help. They'll review your payment options, help you apply for IRS tax relief programs, and negotiate to reduce your debt.

While these firms charge a service fee, many taxpayers find it worthwhile for the peace of mind and reduced stress. Schedule a free consultation with one of the listed Tax Relief companies to see their expert guidance and support in action.

>> Try Larson Tax Relief >>