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Massive tax debt can be a huge and stressful burden, especially when you’re already struggling. Fortunately, there are professional tax relief services for those who are thousands of dollars in debt to the IRS.

Tax relief companies employ a number of tax professionals who can help you negotiate payment options with the IRS and state tax agencies, from payment plans to pausing collections during times of financial hardship (called “currently not collectible” status).

Read on to find out more about the best tax relief companies, as determined by their availability, cost and consumer reviews.

Our Top Picks for Tax Relief Companies
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Best Tax Relief Companies Reviews

Bilingual services offered
Affordable initial fees
Tax planning services help reduce the likelihood of future tax issues
No upfront fee information
Limited state tax debt relief options

Why we chose this company: Community Tax offers free consultations and affordable investigation fees that range between $295 and $500.

Community Tax relief focuses on federal tax debt relief, although it also offers limited state tax assistance. Like similar companies, Community Tax handles applications for everything from installment agreements to offers in compromise (but not innocent spouse relief).

Community Tax is one of the few companies on our list to offer bilingual assistance both online and through its representatives. In addition to tax debt relief services, Community Tax also boasts tax filing, bookkeeping and business accounting services. Consultations are free, and its A+ BBB rating is supported by positive reviews and remarks about the quick response time to customer complaints.

The company services customers with tax debt as low as $5,000. Its money-back guarantee varies from state to state, ranging between three and 10 days, and promises a full refund if your issues aren’t resolved. Initial investigation fees are some of the more affordable on our list, ranging between $295 and $500.

HIGHLIGHTS

Minimum debt required $5,000Certifications and membershipsIRS Continuing Education ProviderCostStarts at $295BBB ratingA+

Money-back guarantee with no time limitSome customers have reported cases resolved in as little as one week
Dedicated tax relief services for truck drivers
Customers have reported poor communication on cases that go on longer than a week

Why we chose this company: Anthem Tax Services’ full money-back guarantee — which promises all your money back if your tax debt isn’t reduced or eliminated — is among the best in the industry. (Note that the money-back guarantee does not apply to tax prep services or the minimum deposit paid by clients.)

HIGHLIGHTS

Minimum debt required $10,000Certifications and membershipsNational Association of Tax Professionals (NATP), National Association of Enrolled Agents (NAEA), California Tax Education Council (CTEC)Cost$400BBB ratingA+

Anthem Tax Services offers both IRS tax debt relief and corporate tax preparation services. The company helps you apply for all IRS tax debt relief programs, including offers in compromise (OIC), innocent spouse relief and “currently not collectible” status.

Notably, it also offers assistance with filing for wage garnishment and tax levy release — services not commonly offered by competitors.

Anthem’s money-back guarantee is also one of the best in the tax debt relief industry, offering all your money back if it fails to secure any sort of resolution from the IRS — whether it’s a reduction in payment amounts or debt forgiveness. It’s important to note that said guarantee doesn’t include 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 that have as little as $10,000 in tax debt and offers free consultations. As a general rule, the company charges a flat rate fee upfront — which can vary greatly per individual customer but generally starts around $3,000 — though the price may change if additional services are required along the way.

15-day money-back guarantee for new customers
Can help resolve complex business tax situations such as tax liens or accounts receivable levies
Free consultations
15-day guarantee may be too short for serious tax debt issues
No bilingual serviceMinimum $20,000 tax debt required

Why we chose this company: Larson Tax Relief’s wide range of business tax services — including payroll and federal tax issues, conflicts with your revenue officer and worker classification issues — make them an excellent choice for business and corporate tax debt relief.

Larson Tax Relief works with all sorts of tax debt relief services, from personal IRS tax debt relief to corporate tax assistance and even help with delaying or preventing bank levies.

In addition to the large number of positive reviews the company receives online, Larson stands out for its business tax services. The company can handle just about everything about business tax preparation, including paperwork for payroll taxes and corporate income taxes. This can be especially useful for small business owners or those with smaller accounting departments that need the support.

Larson offers free consultations but does require a minimum of $20,000 in tax debt to take on your case.

According to Larson, it charges a minimum fee of $200 to file 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, it costs $2,400 to work with Larson Tax Relief.

Larson has a 15-day money-back guarantee that applies to all new customers — this is definitely on the shorter side, as other companies offer 30 days. It might not be all that useful if your case takes weeks to resolve.

HIGHLIGHTS

Minimum debt required$20,000Certifications and membershipsNAEACostStarts at $2,400BBB ratingA+

Proprietary app provides free assessment of collection notices
Free consultations
Clearly outlined tax resolution process provides realistic expectations on the outcome of your case
Minimum $10,000 tax debt required
15-day money-back guarantee shorter than competitors’

Why we chose this company: Optima’s proprietary app, which allows users to file a free tax extension and helps them understand what to do when they receive an IRS notice, makes it the company with the best mobile app in the industry.

Optima Tax Relief works with every type of IRS and state tax relief option, from payment plans to “currently not collectible” filings. The company’s staff is composed of several types of tax professionals, including enrolled agents, tax attorneys and accountants.

Notably, Optima has a proprietary app that lets you access free assessments of any IRS collection notice you receive and also helps you file for an extension on your tax filing deadline.

Optima also offers individual and business tax preparation services as well as 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 takes 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$10,000Certifications and membershipsNAEA, IRS-approved Continuing Education Provider, NATPCostStarts at $295BBB ratingA+

Wide range of tax debt relief and preparation services

Robust tax education resources

Fully bilingual services
Three-day money-back guarantee

Why we chose this company: Tax Defense Network’s availability online and on the phone to both Spanish and English speakers makes it the best tax relief company for bilingual services.

Tax Defense Network stands out for providing a fully bilingual (Spanish and English) customer service, both online and over the phone. The company also accepts tax debt as low as $5,000 in some cases, making it more accessible than many competitors.

Aside from the full range of IRS and state tax debt relief options that competitors also work with (payment plans, offers in compromise, innocent spouse relief and so on), Tax Defense Network offers specialized business tax solutions such as close corporate filing services for when businesses need to shut down permanently. Its educational resources are also more robust than other companies’, including offer-in-compromise and tax withholding calculators.

Despite the company’s free consultations, its three-day money-back guarantee is much shorter than competitors — most companies on this list, for instance, offer at least 15 days. Regardless, its extensive certifications and memberships in national tax professional organizations help to support the numerous positive reviews from its current and former customers.

HIGHLIGHTS

Minimum debt required$5,000Certifications and membershipsNAEA, American Society of Tax Problem Solvers (ASTPS), NATP, Association of International Certified Public Accountants (AICPA)CostStarts at $250BBB ratingA+
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Other Tax Relief Companies We Considered

Below are some companies that we thought were worth looking into but that ultimately didn’t make our list. Though they may not be the best for every situation, they still offer services that some individuals may find useful, depending on their circumstances.

Precision Tax Relief
30-day money-back guarantee
No-interest payment plans for all clients
Free consultations

Precision Tax Relief primarily focuses on IRS tax debt relief but can also handle state tax issues. It doesn’t offer audit representation for its clients.

Aside from tax debt relief, Precision offers assistance with securing wage garnishment and levy releases, which can provide a significant amount of financial relief if granted by the IRS. Individual and business tax preparation services are also available to clients, to avoid tax debt issues in the first place.

Precision stands out for making it abundantly clear that any payment plans you agree to are always interest-free. Its 30-day money-back guarantee is also fairly generous, as many — but not all — tax debt issues can be resolved within the span of three to four weeks.

Fees and rates are not advertised upfront, but they are always provided during the free consultations.

Minimum debt required: $10,000 Certifications and memberships: NAEA, ASTPS, AICPA BBB rating: A+ Victory Tax Lawyers
Flat-rate pricing
Free consultations
No money-back guarantee
Minimum $25,000 tax debt required

Victory Tax Lawyers focuses on tax controversy issues, such as preventing or resolving tax-related criminal charges, rather than general debt relief. However, Victory Tax does handle common IRS tax debt relief options such as compromise and installment agreements (but not innocent spouse relief).

Victory Tax offers assistance to both individuals and businesses, including services such as tax preparation, tax levy and lien defense and audit representation. Notably, it also assists with Report of Foreign Bank and Financial Accounts (FBAR) filings, which must be filed if you have bank accounts in countries other than the U.S.

Furthermore, it only works with cases involving a minimum of $25,000 in tax debt, which is considerably higher than other companies on this list.

Minimum debt required: $25,000 Certifications and memberships: Association of American Tax Problem Solvers (ASTPS) Tax Relief Guide

Understanding and navigating tax relief options can be overwhelming. The following guide to tax relief includes explanations of basic concepts you need to know, as well as information on the many programs that tax relief companies can help you apply for.

What are tax relief services?

Tax debt relief refers to a number of measures and strategies that help individuals pay or reduce their tax liability, especially when seeking help with IRS debt and state tax debt.

Although the term originally referred to policies aimed at reducing the tax burden for both companies and individuals, it’s now often used to refer to payment plans, settlements (called offers-in-compromise) and wage garnishments.

While both state and federal tax collectors offer similar plans, local regulations can vary widely. It’s important to check your state’s comptroller’s office for the specific options available to you.

It’s crucial to note that anyone can negotiate options for paying back taxes directly with the IRS. However, there are situations when hiring professionals can be a worthwhile investment.

Tax relief companies — also known as tax resolution firms — use their knowledge of federal and state law to review your documents and financial situation, and identify the best alternative. The process typically involves filing paperwork and communicating with the IRS on your behalf.

Some companies employ tax attorneys who can, in some particularly complex cases, act as intermediaries in your negotiations with the government.

How do tax relief companies work?

Tax relief companies work with the IRS on taxpayers’ behalf to reduce the amount of back taxes owed. However, it’s worth pointing out that you can do pretty much everything that tax relief companies do by speaking directly with the IRS.

The key difference is that good tax relief companies employ professionals with years of experience, well-versed in tax law, who can more easily navigate complicated cases involving higher debt amounts.

For instance, if your tax debt issues are just a matter of missing last year’s tax payments, you might be better off simply reaching out to the IRS yourself, as there’s little these companies can do that you can’t.

But if your tax debt case involves multiple bank accounts, assets, years of unpaid taxes or other particulars that complicate your tax situation, a tax relief company can potentially help by sorting through your paperwork and identifying the best options available. In very rare cases, they may even be able to find things that the IRS missed and negotiate a lower tax bill.

As a general rule, if your tax debt is under $10,000, you might be better off attempting to negotiate with the IRS yourself. First, most tax relief companies have a minimum debt requirement — usually $10,000 or more. Second, if your debt is under that amount, you might do better paying the IRS in installments instead of increasing your debt load by paying for tax relief services.

Of course, no two people share the same circumstances, and if you feel like you need tax help — regardless of the size of your debt — many tax relief firms offer a free consultation to get you started.

How much do tax relief companies charge?

Given the complicated nature of tax relief services, it’s safe to say that costs 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 how complicated your case is.

Most companies that operate on a percentage basis have rates that range from 10% to 15% of your tax debt. If, for example, your debt is $10,000 (many companies’ required minimum debt) you can expect to pay a minimum of $1,000 to $1,500.

On the other hand, a company that charges 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 prices 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 want to pursue a specific tax relief option such as an offer in compromise.

For these reasons, it cannot be overstated how important it is to ask for as much information as a company is willing/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

Tax problems can include issues resulting from mistakes made during filing or simply not filing a tax return at all. Below are some explanations of the most common tax issues that tax relief companies and tax agencies can handle for you:

Back taxes

Back taxes are taxes owed due to unfiled tax forms or mistakes made during filing. These can accrue interest, which can cause your tax debt to balloon to unmanageable levels. The IRS publishes the interest rates for penalties quarterly; check the agency’s website for the most up-to-date information.

A good way to avoid incurring back taxes is by using tax preparation software. Be sure to check out our article on the best tax software if you’re in need of 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 a 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 in order to pay your debt.

Tax audits

If the IRS spots irregularities in your taxes, the agency may choose to audit you. Overall, 0.38% of income tax returns were audited for fiscal year 2022.

Tax debt relief options

The following tax debt relief options are available to anyone and come directly from the IRS. Some state agencies may offer similar programs for local taxes. Before reaching out to tax relief companies, it’s always a good idea to check the IRS website or speak with a representative over the phone about your options.

Remember that most of the tax resolution services that private companies offer involve reviewing your case details and identifying the best option for your situation based on the information they find; they don’t have access to any information that you could not obtain yourself, and they cannot guarantee any specific result.

If your tax situation is relatively straightforward — meaning you don’t have multiple sources of income, a complex stock portfolio, etc. — you’re usually better off speaking right to the IRS. Here are some of the tax debt resolution options that the IRS offers:

Offers in compromise

Offers in compromise (OIC) are a way to settle your tax debt for less than the full amount you owe. Under this arrangement, the IRS considers factors such as your ability to pay, income, expenses and assets to determine if you are eligible.

Per the IRS, offers in compromise are only considered if it has reason to believe that the lower amount is the most that can be collected “within a reasonable amount of time,” which makes this one of the least commonly offered tax settlement options.

Innocent spouse relief

This type of tax debt relief applies when your current or former spouse commits an error of omission when filing taxes. Innocent spouse relief exempts you from any tax penalties that might apply as a result of these filing errors. This option only applies if the IRS determines that you had no reasonable way of knowing about the omissions.

Installment agreement

If you don’t have the money to pay your tax debt in a single payment, the IRS may offer an installment agreement, or installment plan, where you pay your debt over time. There are two types of installment agreements: short-term (180 days or less) and long-term (monthly payments for as long as you need to pay your debt).

While there isn’t a specific amount you must owe to apply for an installment agreement, online applications are accepted for amounts up to $50,000 (long-term) or $100,000 (short-term), making it one of the more common and accessible options for individuals who want to directly negotiate with the IRS.

Penalty abatement

Sometimes known as “first-time penalty abatement,” this tax relief option is commonly available for lesser tax penalties such as failing to make a payment on a single tax return or missing a filing deadline. The main requirement to be eligible for this type of relief is having no penalties for the previous three tax years, although you must have also filed or at least requested an extension on 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. As a general rule, you can apply for CNC status when paying your taxes represents an undue burden on your necessary living expenses. This refers to scenarios such as being unable to pay essential bills like utilities or rent and even not having enough money left over for basic groceries as a result of your tax debt payment.

If the IRS grants you CNC status, your finances are reviewed every year until it determines that you’re able to 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 in the event that your tax returns are audited. Think of it as you would car insurance: You pay the tax professional an additional amount up front, and they agree to help you resolve any tax audits that might come up in the future (usually up to three years).

Warning about tax relief scams

Tax debt can create a lot of stress, which can make any offer to get rid of 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:

Company representatives make guarantees or promises without looking at your case details The company fails to ask specifics about your tax debt situation Upfront payment is demanded in exchange for “guaranteed” results The company contacts you first by cold call, unsolicited mail and/or email 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 process up front, 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:

Tax Relief Companies FAQs

How far back can the IRS audit you?

The IRS typically limits its audit to tax returns filed within the last three years. However, it may extend this period if a significant error is identified. Generally, the IRS does not go back more than six years, but it’s always a good idea to keep copies of your tax returns and related financial records for at least seven years, as the IRS can request documentation related to previous tax years during an audit.

What is the IRS Fresh Start Program?

The IRS Fresh Start Program is an initiative from the IRS that helps taxpayers obtain relief from their tax debt. This program introduces easier qualification requirements for programs as extended payment plans, offers in compromise and penalty relief to help taxpayers who are unable to pay their tax debt in full.

What is an offer in compromise?

An offer in compromise is a tax debt relief option offered by the IRS that allows you to settle your tax debt for less than the total amount owed. Due to the benefit of paying less than you owe, this is one of the least commonly offered tax relief options.

Who can I call to ask tax questions for free?If you’re looking for general information on a number of federal tax topics, the IRS has several telephone numbers you can call. 1-800-829-1040 allows you to speak with a live representative, while 1-800-829-4477 allows you to access pre-recorded messages on over 100 different tax topics.Do tax relief companies really work?

Tax relief companies may be able to help individuals who owe back taxes to the IRS or state tax authorities. These companies typically offer services such as negotiating a settlement or payment plan on behalf of their clients.

However, it’s important to note that not all tax relief companies are reputable and some may engage in fraudulent or unethical practices. Before hiring a tax relief company, it’s important to do your research and make sure you’re working with a reputable and legitimate firm.

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, read our article on the 13 weird things the IRS considers taxable.

Also, check out 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 looking for professional assistance with your tax debt issues, consulting a tax relief company is likely at the top of your mind. While it is entirely possible to negotiate with the IRS on your own, consulting a professional can often provide greater peace of mind. We used the following criteria to choose the best tax relief companies:

Availability

When people think of tax debt relief, they mostly think about the IRS, which is a federal agency. However, tax debt can also impact people at the state level. We picked companies that could deal with both federal and state tax issues and that were available nationwide.

Cost

We chose companies that offer free consultations and flexible payment plans, making their services accessible to all who need them.

Credibility

To ensure that you only work with companies with a solid track record, we looked at their records with the Better Business Bureau and customer reviews on websites such as Trustpilot.

We also only picked companies with at least one certification, accreditation or membership in major tax professional organizations.

Summary of Money’s Best Tax Relief Companies

Original: Money.com: 5 Best Tax Relief Companies of 2023