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Best Tax Relief Companies

We compared 37 brands and chose the top tax relief companies

  • Top overall
    Larson Tax Relief
    5.0(521)
  • Satisfaction guarantee
    BC Tax
    1.0(21)
  • Customer service
    Priority Tax Relief
    4.8(52)

Best Tax Relief Companies

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By: Ashley Eneriz
+1 more
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Edited by: Cassidy McCants

Our top 3 picks for tax relief companies

  1. Our top pick overall: Larson Tax Relief
  2. Our pick for satisfaction guarantee: BC Tax
  3. Our pick for customer service: Priority Tax Relief

We narrowed down the best tax relief companies for you by comparing costs, tax debt requirements, availability and customer reviews. All of the companies featured offer free consultations, so reaching out for a clearer idea about pricing could help you choose the right company for your situation.

All information accurate as of time of publication.
Our top pick overall
Larson Tax Relief
Larson Tax Relief
5.0
521 reviews
Availability
Nationwide
Staff
Enrolled agents
Free consultation
Yes
Money-back guarantee offered
Yes
Learn More Read Reviews

Navigating the complexities of back taxes can be overwhelming. Larson Tax Relief stands out for its ability to negotiate with the IRS and local authorities, potentially reducing tax liabilities and setting up manageable payment plans. Clients consistently praise Larson Tax Relief for its professionalism, compassion and efficient communication. We also appreciate the 15-day money-back guarantee.

Pros

  • 15-day money-back guarantee
  • Family-owned and -operated
  • Excellent customer reviews
  • No minimum debt requirement

Cons

  • Limited price transparency

Larson Tax Relief charges a minimum fee of $2,500 and typically recommends its services for debts of $15,000 or more. A free consultation is available to estimate costs.

Ronald in California said the fees are “reasonable.” Another customer, Phillip in Kentucky, told us: “They were able to settle a tax debt that started out around $130,000.00 and had grown to around $200,000.00 due to interest and penalties for a payment of $50.00 per month.”

  • “Larson Tax Relief has been a tremendous help in dealing with our taxes for over 2 years. I would not go anywhere else for assistance. They have always been efficient, timely and friendly on working with me.” — Shelley in Missouri
  • “They have been so proactive and so helpful with my needs. They were able to resolve my issues for a very low cost. This is the company you want to utilize for any tax problems you may have.” — Gaylord in California
  • “They guided me through the entire process and assured my tax situation would be taken care of. Their compassion and knowledge of the laws and their professionalism eased my anxieties.” — Antoine in New York

Established in 2005, Larson Tax Relief is a family-owned business specializing in emergency and long-term tax solutions. President Jack Larson is accredited by the National Association of Tax Professionals (NATP) and the National Association of Enrolled Agents (NAEA).

Our pick for satisfaction guarantee
BC Tax
BC Tax
1.0
21 reviews
Availability
Some states
Staff
CPAs, enrolled agents
Free consultation
Yes
Money-back guarantee offered
Yes
Read Reviews

BC Tax emphasizes personalized solutions for tax debt relief, tailoring strategies to individual client needs. Established in 2002, it has a reputation for strong client support and effective negotiation with tax authorities. Like Larson, the company also has a 15-day money-back guarantee.

Pros

  • Physical locations in Colorado
  • Free consultation
  • Flexible hours

Cons

  • Limited price transparency

It’s best to contact the company directly for an accurate cost estimate. Anecdotally, William in New Jersey told us he spent $1,000 on tax relief services, and T. in West Virginia said it cost $1,200.

  • “They were honest and very professional. I've been very happy with them. I have found them extremely helpful in working out a payment plan for me and continuing to move forward to try and get myself out of this mess.” — Mary in New York
  • “I had good experience with BC Tax. I like the rep. He was personable. I trusted him so I went with them. They were able to get the tax lien on hold. Then finally, everything got dropped. If somebody asked me, I'd highly recommend them.” — James in California
  • “I had some tax issues and they were able to get those resolved. Working with their reps was all right. We had no trouble staying in contact with each other. Everything went fine. They were able to reduce my tax debt significantly.” — Robert in Indiana

The firm employs a team of Certified Public Accountants (CPAs), enrolled agents and tax professionals who work directly with the IRS and other taxing authorities to negotiate favorable outcomes for their clients. The team specializes in resolving back taxes, unfiled returns, audits and wage garnishments. The firm also offers penalty abatement and assistance with offers in compromise.

Our pick for customer service
Priority Tax Relief
Priority Tax Relief
4.8
52 reviews
Availability
Nationwide
Staff
Attorneys, enrolled agents, CPAs
Free consultation
Yes
Money-back guarantee offered
Yes
Learn More Read Reviews

Priority Tax Relief offers a strong satisfaction guarantee for peace of mind. Clients can request a full refund within three days if unsatisfied, making it a safe choice for initial engagement. We also like that the company employs a straightforward three-step process to tackle tax issues. It has a three-day satisfaction guarantee; you can get a 50% refund for up to 10 days.

Pros

  • Money-back guarantee within the first three days
  • Simple, transparent process
  • Dedicated client support line

Cons

  • Limited price transparency
  • Limited availability

Typically, you have to pay Priority Tax Relief upfront after a complimentary tax consultation to understand and better help your situation. Once an understanding has been reached, a down payment is required to continue services. From there, a plan will be put in place for continued payments.

“Overall, price-wise, it was steep for what I was getting with the lack of communication there,” Austin in Arizona told us. Janice in Louisiana also said that the price “was a little high. … He needed $1,900 right away before he could do anything at all.”

  • “From the very beginning, their timeliness, professionalism, and compassion stood out. Corey took the time to explain every detail of the process, breaking down the ins and outs of my tax debt situation in a way that was easy to understand. He outlined a clear, actionable strategy that gave me confidence and peace of mind. For the first time in a long while, I was able to sleep at night, knowing that my case was in capable hands.” — Tina in California
  • “After a few hard years, we were in so much tax debt that we almost filed for bankruptcy. Thankfully my son found Priority Tax Relief online and reached out to them. We worked with Scott **, who explained everything that needed to be done. He acted as a liaison and advocate when we had to work with the IRS. He was such a lovely young man and we enjoyed working with him. Priority kept us from losing everything and we cannot recommend them enough.” — Ashley in Idaho

Priority Tax Relief assists with wage garnishments, installment agreements, and other IRS negotiations. It has locations in Massachusetts, Florida, California, New Jersey and Washington.

Tax Relief Buyers Guide

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In this guide

Top Picks

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Tax relief buyers guide

Owing the state or the IRS can be overwhelming, but you don't have to tackle the nuances of the tax code alone. In this guide, you’ll learn how tax relief services work, which tax relief options are available to you and how a tax relief company can help you negotiate with the IRS and potentially reduce your overall tax liability.

Key insights

How much the IRS or state agency will settle for depends on how much you owe and how much the IRS deems you can afford.

Jump to insight

Due to the uniqueness of each person’s tax debt situation, many companies do not publish service fees online. Tax relief companies might charge as little as $250 for penalty abatement or upward of $10,000 for an OIC case.

Jump to insight

Most tax relief companies or attorneys offer the following services to help you reduce or manage your tax debt. Some offer additional services that can help you stay compliant with future taxes.

Jump to insight

What to do when you owe back taxes

When you owe more taxes than you can afford or don’t pay the full amount, you will owe back taxes. If you owe the IRS or local taxing authorities, you must make arrangements to repay or reduce the debt. You can’t reschedule the debt, but you can set up a payment plan.

“Most of the time, the IRS sends letters to taxpayers due to proposed reductions to their tax refunds or additional amounts owed,” said Kevin Matthews, an accounting professor at the George Mason University School of Business.

“Not addressing these notices can be risky, as the IRS usually will make the reduced credit or additional expense stick, leaving the client with a bill that they shouldn’t have to pay. Furthermore, they can levy money if the amount is not paid, and/or the IRS can also put a garnishment on payments or wages received to get their taxes paid.”

What is tax relief and how does it work?

Tax relief is any reduction or removal of liability in taxes owed by an individual taxpayer or business entity. Tax relief companies employ tax experts, including tax attorneys, certified public accountants (CPAs) and enrolled agents, who serve as intermediaries between their clients and the government. These tax experts work with the IRS or your local tax authority to find ways to resolve your tax debt.

It can take months or years to achieve tax relief. Patience and professional assistance are key.

When you work with a tax relief company, its professionals negotiate a tax relief program for you. Some IRS tax relief programs remove improper tax liabilities. For example, innocent spouse relief shields one spouse from the tax, interest and penalties that result from the other spouse's erroneous tax return.

How much does tax relief cost?

Tax relief companies might charge as little as $250 for penalty abatement or upward of $10,000 for an OIC case. Generally, the price of tax resolution services varies based on the complexity of the case.

After a free initial consultation, tax relief agents usually charge a $400 to $600 setup fee. Tax relief companies vary on how they bill clients after this, however. Tax resolution fees can be based on billable time, your debt level or a flat fee.

Types of tax debt relief services

Most tax relief companies or attorneys offer the following services to help you reduce or manage your tax debt. Other services, like releasing wage garnishments, stop the IRS from seizing your wages or assets to pay back taxes.

Offers in compromise

An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles your tax liabilities for less than the full amount owed. Depending on your circumstances, an OIC may be the smartest way to handle your tax debts. An offer in compromise shrinks your tax liability based on what the IRS determines you can realistically pay.

To qualify for an OIC, you must meet the eligibility requirements set by the IRS and complete its online application. To determine what percentage of your tax bill you can pay, the IRS has you take a means test to assess your income, physical assets and expenses.

In some cases, the IRS will not settle or accept an OIC, and the taxpayer will be responsible for their full tax debt.

Installment agreement

An installment agreement is a monthly payment plan set up with the IRS where you pay your tax debt over a certain period of time. Unlike an OIC, you will pay the total amount of tax owed plus any penalties and interest that have accrued.

Penalty abatement

Tax penalty abatement waives IRS penalties for valid reasons. You might qualify if you:

  • Were penalty-free for three years before receiving the penalty you’re attempting to have waived.
  • Filed an extension request or if you paid or plan to pay the amount due.
  • Paid off the penalty before requesting the penalty abatement.
Currently not collectible

CNC status, also called a hardship extension, can be used to stop an IRS tax lien, levy, seizure or termination of an installment agreement. The IRS declares a taxpayer currently not collectible only if the taxpayer has no way to pay their debt while still paying basic living expenses. Once you receive CNC status, the IRS reviews your case annually to determine whether your financial situation has changed. Any tax refunds you qualify for may be kept by the IRS and applied to your outstanding tax debts.

Additional services
  • Innocent spouse relief: If your current or former spouse has a tax debt that you should not be responsible for, you can request innocent spouse relief. You could qualify for innocent spouse relief if your spouse or former spouse omitted or improperly reported items, including capital gains, on your joint tax return. To apply for innocent spouse relief, you must file Form 8857 no later than two years after the date on which the IRS first attempted to collect the tax from you.
  • IRS Fresh Start program: The IRS Fresh Start program is a streamlined installment plan that makes it easier for individuals and small businesses to pay back taxes while avoiding tax liens, interest, penalties, garnishments or seizure of assets. It began in 2011 for taxpayers who owe less than $50,000 and earn less than $100,000 per year, but the IRS expanded the program to include more flexible terms. You must be current with your tax filings for the present tax year and able to repay your tax debt within five years or less to qualify.
  • Audit defense: Many tax preparation companies provide assistance if your tax return is audited by the IRS or state taxing authority. When you opt for audit defense, the company will represent you in front of the IRS and ensure you don’t get into further trouble.
  • Bookkeeping: Bookkeeping involves recording all financial transactions, including purchases, sales, receipts and payments. A good bookkeeping system helps to track income and expenses, which ensures accurate financial records come tax time.

Pros and cons of tax relief companies

Pros

  • Expertise
  • Saves time
  • Better negotiation

Cons

  • Cost
  • No guaranteed results
  • Tax relief expert not always necessary

Tax relief companies can be useful for those drowning in tax debt. On the other hand, while tax relief companies can help negotiate with the IRS, there's no guarantee that they'll be able to reduce your debt or arrange an affordable payment plan.

The most common complaint was that many individuals paid $3,000 to $10,000 for tax relief and had no results. Or they didn’t realize how easy it would be to negotiate with the IRS by themselves. Another common complaint was how long it took to see results — some individuals said it took up to two years to get a resolution.

How to choose a tax relief company

When choosing a tax relief company, you need to be cautious of scam companies that overpromise, overcharge and underdeliver results. When considering if the firm is a good fit for you, do the following:

  • Check a company’s track record: How long has the company been in business? How many customers has it helped? Is it an accredited company by the National Association of Tax Professionals (NATP) or the National Association of Enrolled Agents (NAEA)? Read unbiased reviews on several different sites to get a feel of how customers are treated and if their tax debt was resolved in a reasonable amount of time.
  • Get a customized plan: A tax relief company should take the time to sit down with you for a free consultation and give you a customized action plan and estimated timeline. You want to work with individuals who treat your case like it's one of a kind.
  • Know who is working on your case: There are many different titles in the tax profession, but not all are equipped to handle every type of tax debt. For instance, tax attorneys can handle difficult cases that a public accountant might not have experience in. Understand who will be working on your case and what makes them qualified to do so.
  • Look out for scammers: Asking for full payment upfront before any work is done, pressure to make decisions, unsolicited calls or emails, lack of credentials, vague communication and promises of guaranteed results are all red flags. Additionally, knowing upfront about how to cancel services and refund options can help you avoid potential problems later on. Dealing with tax debt is a personal and stressful situation, so having an honest and supportive team is crucial.

» MORE: How to choose a financial advisor

Tax relief FAQ

Are tax relief companies legit?

Legitimate tax relief companies do exist and they can help taxpayers lower their tax debt or create an affordable payment plan. However, using a tax resolution company does not guarantee results or money-saving benefits. It is important to get a clear understanding of how much a tax resolution company will charge and how long it estimates the process to take before you begin. Be wary of scam companies that promise results that seem too good to be true, charge high upfront fees and have a lack of transparency about their services.

Who qualifies for tax relief?

If you fall behind on tax payments and are unable to pay your taxes in full, you may qualify for tax relief. Tax relief companies often require minimum tax debts before they help with back tax issues — $10,000 is the standard minimum debt requirement. It’s best to call several tax relief companies and speak to representatives to learn more about whether you qualify for back tax debt relief.

Can a tax debt be forgiven?

Taxpayers can have their IRS tax debts partially forgiven under some circumstances. The IRS forgives an outstanding tax liability only when it can’t collect more than your present financial circumstances reasonably allow you to pay. Put another way: The IRS can’t force you to pay back taxes if it creates a financial crisis for you. Keep in mind that IRS tax debt forgiveness programs typically do not erase tax debts, but they do reduce their burden.

You can get your tax debt partially forgiven through an offer in compromise or another IRS tax debt forgiveness program, such as Fresh Start.

Can tax relief affect my credit score?

Yes, tax relief can affect your credit score. While the IRS is legally not allowed to report your tax debt to consumer credit bureaus, the information could be discovered depending on how your relief is structured, making it difficult to open a new line of credit. If this is a concern, ask your tax relief company for advice.

Are there any alternatives to tax relief companies?

Before you call a tax relief service, make sure you fully understand where you stand with the IRS, especially if this is your first year of receiving a letter.

For minor tax debt cases, you might be able to tackle the problem on your own. Here are some alternatives to try before using a tax relief program.

  • Set up an online payment plan with the IRS: You can apply for a short-term or long-term payment plan through the IRS if you cannot pay your whole tax bill upfront. For those who owe under $50,000 in tax debt, the IRS can approve you for a payment plan of over 180 days to help.
  • Take out a loan: If possible, it can be less expensive in the long run to pay your tax bill in full by taking out a personal loan or a home equity loan. This avoids the extra costs of penalties and interest charged by the IRS.
  • Amend your tax return: If you believe there's an error on your tax return that has led to an inflated tax bill, you can file an amended return. If the IRS accepts the changes, it could reduce your tax liability.

» MORE: Best tax software and services

What is the IRS Fresh Start Program?

The IRS Fresh Start Program is an initiative designed to help struggling taxpayers pay off their tax debt more easily. The program provides expanded access to installment agreements, increased tax lien thresholds and more flexible OIC eligibility requirements. This program aims to make it simpler for taxpayers to manage their debt and avoid severe penalties.

How much does the IRS or state agency usually settle for?

How much the IRS or state agency will settle for depends on how much you owe and how much the IRS deems you can afford. In some cases, the IRS will not settle or accept an OIC, and the taxpayer will be responsible for their full tax debt.

Methodology

To update our top picks, the ConsumerAffairs Research Team used a weighted scoring system that took into account both reviews from ConsumerAffairs users and specific company offerings we researched. We conducted sentence-by-sentence sentiment analysis of thousands of reviews on our site from Dec. 1, 2021, to Nov. 30, 2024, to identify the aspects people care about most — and which companies reviewers are happiest with for each aspect. For tax relief, these included:

  • Staff satisfaction
  • Customer service satisfaction
  • Types of staff

We then carefully selected the most important offerings consumers should consider before choosing a tax relief company and researched these offerings at each company:

  • Free consultation
  • Notable features
  • Staff credentials
  • Guarantee

The company with the highest score in each category’s uniquely weighted formula was given the “Our pick for” or “Best for” designation. In some cases where a single company received the top score across multiple categories, the company with the next-highest score was named the winner.

Disclaimer

Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.

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    Guide sources

    ConsumerAffairs writers primarily rely on government data, industry experts and original research from reputable publications to inform their work. Specific sources for this article include:

    1. Federal Trade Commission, “Trouble Paying Your Taxes?” Accessed Dec. 12, 2024.
    2. IRS, “Companies who promise to eliminate tax debt sometimes leave taxpayers high and dry.” Accessed Dec. 12, 2024.
    3. IRS, “Get help with tax debt.” Accessed Dec. 12, 2024.

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