Best Tax Relief Companies

To select our picks for the top tax relief companies, we first looked at customer reviews and ratings. To narrow down the 21 companies on this guide, we excluded those without at least 10 verified reviews on our site over the last year and with an overall satisfaction rating below 3 stars, leaving 16 companies.

The ConsumerAffairs research team then considered multiple factors, including cost, pricing structure, tax debt minimums and maximums, availability, tax solution offerings, accreditations and customer reviews. The companies below are highly recommended by existing customers and meet our criteria for availability and customer experience.

• Our pick for business tax debt: Fortress Tax Relief
• Our pick for full service: Community Tax
• Our pick for a money-back guarantee: Anthem Tax Services
• Our pick for pricing structure: Victory Tax Lawyers, LLP
• Our pick for emergency tax relief: Larson Tax Relief
• Our pick for personalization: J. David Tax Law LLC
• Our pick for customer experience: Optima Tax Relief

Fortress Tax Relief offers solutions for personal and business tax debts of $15,000 or more. These solutions include offers in compromise, penalty abatement, innocent spouse relief and tax appeals. Business-specific services include help with trust fund recovery penalties, should you be held personally liable for your company’s failure to pay taxes. Fortress Tax Relief has licensed tax attorneys to handle every case.

While Fortress Tax Relief offers free consultations to discuss tax relief options for each specific case, costs depend on the type of case you're dealing with. If you change your mind after your initial consultation, you can take advantage of its money-back guarantee within 24 hours.

Community Tax helps customers nationwide settle state and federal tax debts with monthly payments. Community Tax’s tax debt solutions include innocent spouse relief, offers in compromise and other services. Beyond tax relief services, the company also provides accounting services, bookkeeping services and tax preparation services.

This full-service company is a good option for those who want to get out of tax debt and take it a step further by creating good tax-preparation habits after the debt is resolved. While working with a tax relief company is less effective if you have less than $10,000 in tax debt, Community Tax does accept tax cases of $5,000 or less. Its website also has free resources related to taxes and the IRS that you can use as a starting place to educate yourself.

Anthem Tax Services offers a range of tax services, including tax preparation, audit protection and tax litigation. Every tax professional it works with is licensed in all 50 states, and they can work with you remotely if you are not close to an Anthem Tax Services location.

Anthem Tax Services does not offer specific pricing on its website because costs vary from case to case. However, it does offer free consultations and a guarantee you’ll get your money back if it isn’t able to save you money or rework your payments after you receive a response from the IRS. The guarantee does not apply to bookkeeping and tax preparation services or to the nonrefundable deposit.

Victory Tax Lawyers, LLP works with both businesses and individuals who have tax debt. It’s important to note that this company is actually a law firm. As a result, licensed attorneys work on its cases and provide consultations. You must also have at least $25,000 in tax debt to work towards a settlement with Victory Tax Lawyers, though. Besides tax relief, the company also offers estate planning, audit representation, and advice on tax liens and tax levies.

You can receive a free consultation before deciding if this company is a good fit for you. Since costs vary depending on the complexity of your case, Victory Tax Lawyers’ pricing is not available upfront. However, it’s important to note that the company’s pricing is based on flat fees, which means you are less likely to see other fees after your initial payment.

Larson Tax Relief is a family-owned company that specializes in emergency tax relief, aiming to relieve tax burdens faster than other companies. Emergency relief may not be immediate, but the company protects people against aggressive collection actions due to unpaid taxes.

Operating in all 50 states, Larson Tax Relief aids in most business and personal tax matters, including tax liens, wage garnishments, tax levies and tax debt. It also offers tax preparation services.

The company offers free, no-obligation consultations. Once you agree to its recommendations, Larson Tax Relief charges all fees upfront. The company offers a 15-day full refund.

The lawyers at J. David Tax Law LLC offer personalized tax solutions, including tax liens, bank levies, offers in compromise, penalty abatement, currently not collectible (CNC) agreements and audit representation. After helping to settle your debt, the company also educates you on how to stay out of tax debt in the future by making payments on time and complying with tax regulations.

J. David Tax Law LLC operates nationwide. You can obtain a free consultation with a tax lawyer and get additional information through a phone call. While pricing isn’t transparent, the company does offer payment plans to help customers with the expense.

Optima Tax Relief is a full-service tax relief firm. Free consultations are available, and the company helps you get a clear understanding of your options before you pay any fees. Optima Tax Relief prides itself on a two-phase system involving “Investigation,” which lasts between two and four weeks, and “Resolution,” which lasts between three and nine months.

Optima sets itself apart from other tax relief companies by offering three tiers of protection plans, providing identity protection, tax preparation and IRS protection. At the time of publishing, the basic plan costs $29.99 a month, the standard plan costs $49.99 a month and the professional plan, which is geared toward the self-employed, costs $69.99 a month.

Tax relief is any reduction in taxes owed by an individual taxpayer or business entity, including tax deductions and tax credits. For example, a tax credit can incentivize homeowners to make energy-efficient repairs, and a tax deduction can decrease the overall tax burden for those affected by a natural disaster.

People who owe a tax debt often seek tax relief to reduce the amount they owe to the IRS or state tax agencies. Those who didn’t file a tax return, misfiled their return or were unable to pay taxes end up owing a tax debt that accrues penalties and interest. Many people facing this tax burden do not have enough liquid assets to pay the full amount at once and require assistance.

Tax resolution companies specialize in tax reduction strategies to resolve back tax debt and unfiled returns, including installment plans. IRS debt tax relief professionals also negotiate with the IRS and state tax commissions on behalf of their clients.

Tax relief companies employ tax experts, including tax attorneys, certified public accountants and enrolled agents, who serve as intermediaries between their clients and the IRS. These tax experts work with the IRS to find ways for clients to resolve their tax debt. IRS debt help experts can also help by negotiating tax relief programs, tax debt settlement agreements or tax debt installment agreements.

Seek professional tax relief help
if you owe more than $10,000.

The IRS offers several tax debt relief programs. Taxpayers can apply for tax relief from the IRS directly or hire a tax relief company to help negotiate on their behalf. If you owe a tax debt of more than $10,000, it’s smart to hire a tax relief professional who has experience negotiating with the IRS.

When you work with a tax relief company, its professionals negotiate a tax relief program for you. Some IRS tax relief programs, like innocent spouse relief, remove improper tax liabilities. Others, like the release of wage garnishments, stop the IRS from seizing your wages or assets to pay back taxes.

Tax relief companies use different types of contracts — some tax relief companies require clients to sign a contract, while others don't require signatures on any paperwork and let clients start and stop work at their discretion. Any contract you sign with a legitimate tax relief company should clearly define the scope of the work, the payment schedule and how you’re billed.

Common tax problems

If you have a tax debt, you should attempt to pay the balance as quickly as possible. Unpaid tax bills collect interest and monthly penalty fees. If you can’t pay everything you owe at once, negotiate with the IRS to come up with an installment plan. The IRS is patient — and even flexible — if you make an effort to set up a payment plan. Ask a tax relief company for help if you need assistance with tax problems, including:

Offers in compromise

Depending on your circumstances, an offer in compromise 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.

In order to qualify for an offer in compromise, you must meet the IRS’s eligibility requirements 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 the following aspects of your situation:

• Your income
• Your physical assets
• Your expenses

The application fee for an offer in compromise is $205, but some people may qualify for low-income certification. A tax relief company can help you apply for an offer in compromise, or you can do it yourself. If you have a complicated tax situation, it’s a good idea to hire a professional.

It can take the IRS anywhere from four weeks to eight months to accept an offer in compromise, but it often agrees to offers in compromise if there is legitimate doubt about whether the taxpayer is liable for the taxes owed or if it’s unlikely the agency can collect the tax debt. Once you agree to an offer in compromise with the IRS, you have two years to repay the amount and two payment options to choose from: a lump-sum payment or monthly payments.

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. Innocent spouse relief only applies to tax debts on individual income or self-employment, and you must request relief within two years of the date the IRS attempted to collect the amount from you. If innocent spouse relief doesn’t fit your tax situation, there are two other forms of joint tax relief:

• Separation of liability relief provides for the separate allocation of your taxes from a spouse you’re no longer living with or your former or legally separated spouse. If your spouse incorrectly reported something on your joint tax form, you’re only required to pay the tax amount allocated to you by the IRS.
• Equitable spouse relief provides an allocation or deduction of tax debt if your spouse made an error on a joint tax return or the amount of tax reported is correct on your joint return but wasn't paid with the return. Unlike innocent spouse relief and separation of liability relief, you don’t have two years to request equitable spouse relief — it must be requested at the time of collection.

Installment agreement

An installment agreement is a tax repayment plan offered by the IRS that lets people pay their unpaid taxes in monthly installments. The IRS offers long-term installment agreements and short-term payment plans, and both plans have different requirements.

To apply online for a short-term payment plan (less than 120 days), you must have less than $100,000 in tax liability, including penalties and interest. To apply online for a long-term installment agreement, you must have less than $50,000 in tax liability, including penalties and interest. If you owe more than $50,000 in tax debt, you are not eligible to apply online and may be required to submit additional forms.

An installment agreement is guaranteed if you owe less than $10,000 and can pay off the full amount within three years.

Penalty abatement

Tax penalty abatement waives a penalty the IRS has issued to a taxpayer. These penalties are often given for failing to file taxes on time or missing a tax payment. You might qualify for penalty abatement if you were penalty-free for three years before receiving the penalty you’re attempting to have waived. You might also be eligible if you filed an extension request or if you paid or plan to pay the amount due. Because failure-to-pay penalties grow over time, you should pay off the penalty before requesting the penalty abatement. If it is granted, you receive a rebate.

Currently not collectible

CNC status, also called a hardship extension, can be used to stop an IRS 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 refunds you qualify for may be seized by the IRS and applied to your outstanding tax debts.

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.

To qualify for the IRS Fresh Start program, you must have filed all of your tax returns and not entered into another payment plan in the past five years. Those who have filed for personal bankruptcy are also disqualified.

On average, tax relief costs between $1,000 and $7,000.

Tax relief costs range from $750 to $10,000 or more, depending on your tax debt circumstances. Generally, the price of tax resolution services varies based on the complexity of the case.

A case of average complexity typically ranges from $1,000 to $7,000. Complicated tax situations are more expensive because they require additional work and documentation from the tax relief company. Highly complex tax relief cases cost up to $8,000 or more to resolve. Tax relief companies might charge as little as $250 for penalty abatement or upwards of $10,000 for an offer in compromise (OIC) 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 time-based, debt-based or a flat fee.

• Time-based fees are charged at an hourly rate, and the total cost is based on how long it takes the tax relief company to handle a client's case.
• Debt-based fees are set based on a percentage of the total tax debt the client owes.
• Flat rates are set based on the service and do not change regardless of the size of the debt or how long it takes the tax relief company to perform the service.

Tax relief companies provide a wide variety of tax relief options to help people with unpaid taxes. These companies employ trained professionals who help you with multiple services, including negotiating tax debt. When you work with a tax relief company, the company creates a tax relief program for you that combines the following types of tax help services:

Most of us don't like dealing with the IRS, but the longer you wait, the larger your tax debt becomes. Some different tax debt resolution options to pay off the IRS in full or partial payments include:

• Lump-sum payment: If you owe money to the IRS, it’s always best to pay in full to minimize interest charges and penalties. If you can’t make the whole payment all at once, you could qualify for an extension of up to 120 days.
• Payment plan: If you can’t pay everything you owe immediately, you can negotiate with the IRS to come up with a short- or long-term payment plan.
• Credit cards: You can pay federal taxes with a credit card. The IRS doesn’t accept direct credit card payments, but there are licensed payment processors that accept credit card payments on the IRS’s behalf. Be aware that these companies charge a fee to settle tax debt with a credit card. You must also pay interest to your credit card issuer until you pay back the amount.
• Bankruptcy: Filing for Chapter 7 bankruptcy can discharge income tax debts under certain conditions. The debt must be at least three years old, you must have filed a tax return and the IRS must have assessed the debt within 240 days before you file for bankruptcy.
• Statute of limitations: Generally, the IRS collection process on taxes, penalties and interest has a 10-year statute of limitations. The 10-year period starts on the date of your tax assessment. If IRS tax debt forgiveness after a decade sounds too good to be true, keep in mind the period can be suspended multiple times and may last much longer.
• Hire a tax professional: If you owe more than $10,000, it’s smart to hire a tax relief professional with expert knowledge of how to negotiate with the IRS. The average cost of a tax attorney ranges from $750 to $10,000 or more, depending on the complexity of your case.