Obtaining tax relief when in debt to the IRS can be stressful and challenging. Owing back taxes is a serious issue that can result in wage garnishment and other consequences for individuals and businesses. Choosing the right company to help you find relief from your bills is an important decision.
While there are many tax relief companies, they don’t have the same level of service or specialize in your specific back tax issues. Explore the services and pricing of the best tax relief companies in 2022, including our own tax resolution services, so you can make the right decision to put your finances back in order.
How We Chose the Best Tax Relief Companies
It is vital that you choose a reputable, capable tax relief company to assist you in easing your IRS debt burden. Each company has different attributes that make it suitable for your unique circumstances. However, it’s helpful to consider specific criteria that identify a tax relief company as reputable, trustworthy, and effective in helping you address your IRS debt obligation.
Good Reputation
A good reputation is essential for any tax relief company. This company will affect your financial future and could be what stands between you and serious legal issues. Any company you choose to do business with should have an impeccable reputation among its clients and the IRS.
This good reputation will improve their chances of negotiating a favorable deal, which can often mean the difference between a successful tax relief negotiation for a customer or further financial harm. An excellent professional reputation will precede an outstanding company and must be considered when choosing a tax relief firm.
Experienced
The IRS and other government tax bureaus are bureaucracies that have procedures, codes, and rules regarding any form of tax relief. An experienced company will know how to navigate these complex procedures to maximize savings for their clients.
Understanding potential pitfalls, knowing how to negotiate, and having a proven track record are all essential attributes for any reputable tax relief company.
Attractive Price Structure
Anyone seeking tax relief is already in a precarious financial position, and unnecessary exorbitant fees will worsen matters. Any reputable tax relief company will have a price structure that allows its clients to pay a reasonable amount for a high-quality service.
Reputable companies understand the cost of their services, charge a reasonable amount, and explain to their customers each cost and why it is necessary for their particular case.
Offer Free Consultation
A free consultation allows the tax relief company and potential client to discuss available services and associated costs. Transparency is a crucial attribute among tax relief companies. A trustworthy company should be open and honest about what services they can provide, how much a prospective client can save, and what fees are associated with their work.
Offering a complimentary consultation shows that a company is honest in its dealings, is realistic about what it can achieve, and is transparent about pricing.
Achieve Results
The most crucial attribute of any tax relief company is its ability to achieve results. Companies should be honest about their success rate and what they have achieved for their clients. A company with a long history and happy client testimonials is more likely to be reputable and could have a higher success rate than a newer organization.
Best Tax Relief Company for a Guaranteed Service
Anthem Tax Services
Anthem Tax Service has an ironclad policy that they don’t receive payment until their clients have debt resolution. So, you don’t pay for their services if you do not have some form of tax relief. This guarantee motivates Anthem to find a solution for you and work diligently to resolve your IRS tax issues.
What we Love (Pros)
- Well-trained, experienced staff versed in IRS and other tax agency codes and regulations. Understand the ins and outs of tax relief.
- Free initial consultation to speak with a qualified staff member, giving you a better understanding of your case and potential settlement options.
- 100% money-back guarantee if your case is unsuccessful. You do not need to pay for their services if they cannot lower your debt.
Things to Consider (Cons)
- Limited information upfront. To understand the full extent of their services and price, you must set up a free consultation that will involve a sales pitch.
- Customers report that Anthem’s fees are higher than their competitors in most cases.
Overview
Anthem is one of the most trusted names in tax relief, and they have helped many clients ease their tax burden. However, that excellent service comes at a higher price than other competitors.
- Minimum Debt Required. Anthem requires minimum debt required of at least $8,000. Most of Anthem’s services are geared toward those with a higher debt burden.
- Cost. While Anthem provides its exact fee structure in the initial consultation, the company charges at least $300 plus a percentage of your tax debt relief settlement in most cases.
- BBB Rating. Anthem Tax Services has a 4.4 out of 5-star rating from the Better Business Bureau.
Company Review
Anthem is a professional company with a long track record of success for its clients. Although their services are more expensive than other companies, most customers report satisfaction with their work.
Some customers convey mild dissatisfaction at the lack of concrete information about costs and specific services on their website. They also dislike having to schedule a consultation before finding out more but agree that the meeting was informative and that Anthem answered all questions.
The 100% money-back guarantee that Anthem offers is an attractive feature of their services, giving most clients a sense of security in choosing the company to handle their debt. Customers feel that the guarantee motivates Anthem’s staff to succeed and find out-of-the-box solutions for reducing their IRS tax burden.
Customers report feeling satisfied with the settlement they received in most cases. They also report feeling that the price equaled the service and that they got their money’s worth.
Best Tax Relief Company for Affordable Fees
Community Tax Relief
Community Tax Relief is an affordable and effective tax relief company. They have some of the lowest fees in the industry and offer affordable help to those needing to negotiate with the IRS. Clients of Community Tax Relief often deal with a case manager rather than the licensed professional that negotiates with the IRS on their behalf.
What we Love (Pros)
- Proven record with over $1 billion in tax relief negotiated on their client’s behalf.
- They sometimes offer discounts and promotions to offset the initial investigation fees.
- Free, comprehensive consultation for clients to get a better understanding of the nature of their tax debt and ways they can get relief.
Things to Consider (Cons)
- Remote case managers: Cases are handled by case managers who may or may not be licensed tax professionals. Most meetings are conducted through virtual tools, which could be difficult for people without stable access to the internet or who prefer in-person consultations.
- While they offer periodic discounts, their initial investigation fees can cost hundreds of dollars.
Overview
Community Tax Relief has been helping clients ease their tax burden since 2010. They operate nationwide and offer a range of services beyond tax relief. They are one of the more open and transparent companies, offering a wealth of information on tax relief on their website and blog for potential clients to read and consider before paying for any of their services.
- Minimum Debt Required. Community Tax Relief has a minimum tax debt of $7,500 to qualify for its services.
- Cost. The costs vary depending on case particulars. The initial investigation fee is $295 before any discounts or promotions. The total cost of a debt resolution can run between $3,000 and $5,000.
- BBB Rating. Community Tax Relief has a 4.37 out of 5 rating from the Better Business Bureau.
Company Review
Community Tax Relief is a trusted, dependable tax relief company offering high-quality services at an affordable price. Their initial consultation does not have a time limit, and customers report that their case managers took as long as needed to answer questions and help them understand their case.
Some clients did not like the organizational system where direct contact is limited to a case manager rather than a tax professional negotiating with the IRS. Despite this complaint, clients reported that case managers were informed and professional. They ensured that the client’s concerns were addressed and communicated openly and effectively.
Clients also reported that the case managers passed their concerns on to the tax lawyer, negotiating on their behalf in a timely manner.
Community Tax Relief offers a satisfactory service at an attractive price. This firm is an excellent option for people looking to ease their small to medium-sized tax burden without spending a fortune.
Best Tax Relief Company for Business Tax Debt
Lawler & Witkowski
Lawler & Witkowski is a New York-based tax relief company that offers to assist businesses nationwide reduce their tax debts. They specialize in helping corporations and businesses resolve any outstanding debt with the IRS or other tax agencies.
What we Love (Pros)
- While they specialize in business tax relief, they also offer individual services for qualified clients.
- The staff focuses on effective, professional communication, quick response times, and detailed answers to questions.
- All staff members are Certified Tax Resolution Specialists.
Things to Consider (Cons)
- Lawler & Witkowski does not list their fees on their website or publicize them. They also do not give a final cost at the initial consultation, requiring follow-up consultations to get a final price.
- Lawler & Witkowski offers a free consultation, but it is limited to only one hour, which can be insufficient if you have a complex case or have several questions.
Overview
Lawler & Witkowski is a high-profile, successful tax relief agency that has worked with many corporations and individuals to ease their tax burden. They have a proven track record dating back many years. Partners Lawrence M. Lawler, CPA, EA, CTRS, and John J. Witkowski, CPA, CTRS, were founding members of the nation’s primary tax relief accreditation organization, the American Society of Tax Problem Solvers.
- Minimum Debt Required – 50k. As the firm works with corporations and select individuals, its minimum tax debt is $50,000.
- Cost. While the firm does not publicly disclose its costs, clients report a minimum fee of $5,000.
- BBB Rating. Lawler & Witkowski does not have a BBB star rating as of September 2022; however, it is rated an “A” accredited business on the BBB site.
Company Review
Lawler & Witkowski is a top-quality, professional tax relief company with a proven record of success. Their staff is highly qualified, and they handle corporate and private tax debt. Their fees are on the high side; however, clients report that they feel they got their money’s worth from the services performed.
Lawler & Witkowski is geared towards working with corporate tax debt relief. The majority of their practice is related to the corporate sector. While they work with individuals, it isn’t the primary focus of their work, and they may not be the right company to handle individual tax debt relief.
They also have very high debt minimums for individuals, which may be beyond most people’s debt obligations.
Lawler & Witkowski is a high-end provider, and their fees can be expensive, so it is a good idea to speak with a few relief companies to compare their services and make the best choice for your tax debt relief. The firm is an excellent tax debt company to work with, provided you meet their debt minimum and are willing to pay their higher fees.
Best Tax Relief Company for Large Tax Debt
Fortress Tax Relief
Fortress Tax Relief was founded in 2003 by tax relief lawyers who wanted to assist taxpayers when dealing with the IRS and other tax agencies. They pride themselves on being a medium-sized organization with a large, experienced staff with a small enough customer base to ensure no one is lost in the shuffle. Based in Oregon, they provide services nationwide.
What we Love (Pros)
- Licensed attorneys handle all cases as opposed to case managers or tax specialists at other companies.
- The initial free meeting is offered in person or over the phone and is with a tax lawyer, not a case manager, accountant, or salesperson.
- Fortress provides services nationwide, and the process can be started over the phone.
Things to Consider (Cons)
- Working with a lawyer is more expensive than a case manager or tax specialist.
- Fortress works with large amounts of debt and doesn’t accept smaller debt clients.
- They assist with tax relief, not back taxes or other tax issues.
Overview
Fortress Tax Relief is a competent company that uses lawyers as its negotiators with the IRS. This approach works well, and having an advocate well versed in tax law can benefit many tax relief cases; however, it comes at a higher price point for the services included in your debt relief tax preparation services.
- Minimum Debt Required. Fortress requires a minimum tax debt of $10,000.
- Cost. Like many other tax relief organizations, Fortress does not publicly state its fee structure. On average, former clients report fees between $3,000 to $4,000, depending on the case’s complexity.
- BBB Rating. As of September 2022, Fortress Tax Relief has a 4.82 out of 5-star rating from the Better Business Bureau based on 75 customer reviews and an A+ accreditation from the BBB.
Company Review
Fortress Tax Relief is an accredited company and member of the American Fair Credit Council (AFCC) and the National Association of Tax Resolution Companies (NATRC). They have a proven track record of over $250 million in relief for their clients.
All professional workers at Fortress are bar-certified tax-specialist lawyers, giving them a unique understanding of the complexities of individual cases and how best to approach negotiations with the IRS and other tax authorities.
The knowledgeable staff at Fortress could help you navigate complex tax laws and give your negotiations an edge that other tax debt relief companies cannot offer.
As they employ lawyers to work on your case, the fees will be higher than other companies, but it could be a good investment if you are an excellent client for their services. They are a full-service tax organization offering other IRS audit representation, tax debt settlement, and tax lien removal in addition to tax relief.
Best Tax Relief Company for Small Tax Debt
Community Tax Relief
Community Tax Relief makes this best tax relief company list twice because, in addition to being the best affordable tax relief company, they are also the best for minor tax debt relief. Their affordable fees and low debt requirements make them ideal for those looking to resolve a smaller amount of tax debt.
What we Love (Pros)
- Proven record of success with $1 billion in tax relief for their clients.
- Periodic promos and discounts.
- Free consultation with a case manager to get a clear idea of your case.
Things to Consider (Cons)
- Their investigation into your case after the free consultation could run into hundreds of dollars.
- Your case is handled by a remote case worker who may not be a tax specialist or tax attorney.
Overview
From its start in 2010, Community Tax Relief has achieved over $1 billion in tax relief for its clients. They focus on providing an excellent service at a lower price point and offer relief for clients who have lower levels of debt than many other tax debt relief services. They offer other tax services in addition to tax relief, including tax audit assistance, annual tax preparation, tax appeals, and assistance with tax-related collections.
- Minimum Debt Required. Community Tax Relief requires a minimum tax debt burden of $7,500.
- Cost. They charge a $295 initial investigation fee, with a full tax debt relief program costing between $3,000 to $4,000 on average.
- BBB Rating. Community Tax Relief has a 4.37 out of 5 rating from the Better Business Bureau.
Company Review
Community Tax Relief will take on small debt burden cases that other companies will not and has a lower cost than many competitors. They have a proven record of success and can often help their clients reduce their debt burden.
The point of contact is a case manager, not the lawyer representing you to the IRS, which some customers do not prefer. Former clients report, however, that the case managers are knowledgeable, helpful, and prompt in communication. The negotiations are handled by competent, experienced tax specialists with a proven record of successful negotiations with the IRS.
While some clients do not prefer this system, it seems that it is still an effective way to handle your case. Their use of case managers should not affect the outcome of your debt relief negotiations and could save you money compared with other companies.
If you have a smaller tax debt or want to settle your debt for lower fees, Community Tax Relief could be an excellent company for you.
Best Tax Relief Company for Customer Service
Precision Tax Relief
Precision Tax Relief is a client-focused tax relief company that has settled $58 million in tax debt in the last 5 years alone. They focus on transparency and a positive customer experience by taking on clients they know they can assist.
What we Love (Pros)
- Free initial consultation and straightforward flat rate fees for their services.
- They have experience with thousands of cases and a solid record of success for their clients.
- A smaller agency that is more responsive and client-focused than others.
Things to Consider (Cons)
- Handles Federal tax debt cases and does not handle IRS audits.
- Flat rate fees could be more expensive than per-hour billing if your case is settled quickly.
Overview
Only focusing on IRS tax cases, Precision Tax Relief offers a more attentive service than other providers but does not handle a broad range of services. They provide a no-obligation initial consultation and offer their clients immediate relief from IRS collections.
- Minimum Debt Required. They do not have a minimum debt requirement, but due to their flat rate pricing, any debt under $10,000 might not be worth the cost.
- Cost. Their flat fee structure ranges from $3,000 to $5,000, depending on the particulars of your case.
- BBB Rating. Precision Tax Relief has a 4.96 out of 5 star BBB customer rating based on 24 reviews, and the BBB has awarded them an A+ accreditation.
Company Review
Precision Tax Relief has a dedicated team of tax professionals who work hard to achieve relief for their customers. Though they work on a smaller range of tax debt issues, they offer clear, transparent service with no hidden fees.
They have been in business for over 15 years and have helped thousands of clients win millions of dollars in tax relief. Precision is one of the best tax relief companies at what they do, and they see their specialization as an advantage and pride themselves on staying up to date with tax codes and regulations changes.
They only take on clients they know they can help but offer a free initial consultation to all so you can better understand your case and know if they are the right company for your tax situation. Your case may fall outside Precision’s specialties, but if your situation is one that they work with, they are an excellent option for tax debt relief.
Best Tax Relief Company for IRS Audit Representation
Tax Shark
Tax Shark is a company committed to delivering life-changing results and helping its corporate and individual clients escape from a tax burden. They have achieved $4 million in tax debt relief in the last six years and help most clients immediately at their initial consultation. They have upfront pricing and an experienced team to help you navigate your tax burden with ease and within a reasonable budget.
What we Love (Pros)
- As a smaller firm, they offer excellent response times, open and transparent communication, and rapid response to IRS inquiries.
- All tax shark professionals have experience in IRS debt cases, and all are IRS Enrolled Agents with a wealth of tax knowledge.
Things to Consider (Cons)
- They bill at an hourly rate, which means you won’t know your final bill until your case is resolved.
- While they offer state tax relief assistance, they are more focused on dealing with IRS taxes.
Overview
Tax Shark is an effective tax debt relief company with thousands of clients served and a money-back guarantee if you aren’t satisfied with their services. Every professional who handles cases is certified by the IRS as an Enrolled Agent, ensuring that they are knowledgeable specialists in the tax code and know how to negotiate with the IRS successfully.
- Minimum Debt Required. They do not have a minimum debt requirement, but due to their flat rate pricing, any debt under $10,000 might not be worth the cost.
- Cost. Their flat fee structure ranges from $3,000 to $5,000, depending on the particulars of your case.
- BBB Rating. Precision Tax Relief has a 4.96 out of 5 star BBB customer rating based on 24 reviews, and the BBB has awarded them an A+ accreditation.
Company Review
Tax Shark is a newer tax debt relief company but has already helped many clients achieve the relief they need. Although it is a more recent company, Tax Shark has already proven itself as effective in getting results for clients.
Their pricing structure is billed by the hour, so those with simple cases may find it more affordable than those with complex IRS tax issues. They offer a free initial consultation with one of their tax professionals that should help you understand the nature of your case and how much it may cost to resolve.
Their money-back guarantee shows their commitment to the quality of their services. They believe in their negotiators’ effectiveness and are willing to take a loss should they not be successful. If you have a simple federal tax debt, schedule a free consultation to understand what they can do for you and how much it may cost.
What is a Tax Relief Company?
A tax relief company helps indebted taxpayers reduce their outstanding liabilities. These companies employ tax lawyers and experts who have experience dealing with the IRS and often have certification from the IRS. The company negotiates with the IRS or other tax agencies to reduce the overall amount of debt, the monthly payment on an existing tax liability, or both.
Tax relief firms are for-profit organizations that charge fees for their work. They can advertise their services; however, the FTC warns that not all tax relief companies are equal, and some may be a scam, similar to consumer credit card debt relief agencies. They advise doing due diligence and consulting with organizations like the BBB before working with any tax relief firm.
Do Tax Relief Companies Really Work?
A tax relief company uses a wealth of experience and qualified tax professionals to negotiate with the IRS or other tax agencies on your behalf. You can attempt to negotiate with the IRS on your own, but since their staff has experience in dealing with these cases, they may be able to get you a better settlement than you could get negotiating yourself.
Tax relief companies have collected over $1 billion in tax debt relief for their clients. When you negotiate with the IRS to get a debt relief package, you need to give them a specific amount you will be able to pay. A tax relief company can use its knowledge to get you the lowest amount that the IRS will accept based on years of experience working on behalf of clients.
An IRS tax relief might not be the best option if you have a small tax burden. Instead, one of the IRS’ debt programs might offer a more cost-effective solution. You can still speak with a tax relief company to walk you through your options and ensure you choose what is best for you and will save you the most money.
How Much Does a Tax Relief Company Charge?
All tax relief companies charge for their services; however, fees will differ per firm. Some companies charge flat fees, which is more economical if you owe a large sum, but not as economical if you owe less.
Some charge by the hour, which benefits more straightforward cases but will accrue more expenses for complex ones. Other companies charge a base fee and take a percentage of the final settlement.
No matter what company you choose, it is essential to understand their fee structure before contracting their services. This due diligence ensures you don’t receive pricing surprises upon the resolution of your case and that their fee is worth the expense, which can range from a few thousand dollars to over $50,000 in some cases.
Alternatives to Using Tax Debt Relief Companies
While tax debt relief companies are an effective way to ease a tax debt burden, there are other ways to negotiate with the IRS. A tax relief company could be unhelpful for your specific case if you can reduce your tax debt without hiring an outside firm. Alternative tax debt relief options include:
Direct Negotiation with the IRS
The IRS negotiates with indebted taxpayers and offers resources on their website for how to speak with them about your specific case. Once you contact the IRS and provide them with the details of your situation, they consider the circumstances. They may offer you a settlement with a lower amount of money to be paid called an “Offer in Compromise.”
They may also offer you a lower monthly payment or a deferred payment plan to offset short-term difficulties. You can also reference online resources if you choose to negotiate with the IRS.
Tax Relief Lawyers
Tax relief lawyers can also be an alternative to a tax debt relief company. These lawyers are versed in tax law and bar-certified, giving you added confidence in their abilities. However, these lawyers are more practical for complex cases involving large amounts of money, tax fraud, or criminal tax cases.
Warning About Tax Relief Companies
The Federal Trade Commission has issued warnings about tax relief companies. As these companies can advertise on television, radio, and the internet, it has given rise to many unscrupulous firms that make big promises, take large sums of money upfront, and then scam their clients.
The FTC recommends that all potential clients vet any tax relief company and use caution before paying a company any money upfront. Organizations like the BBB and the American Society of Tax Problem Solvers certify reputable companies, and you should follow their recommendations. All individuals can negotiate with the IRS for free, and any for-pay services offered should add substantial value or savings to make them worth the money.
FAQs
Here are the answers to some common questions related to tax relief companies, their services, and the IRS.
The IRS uses a formula to determine a settlement. In most cases, it will be your discretionary income multiplied by 24 plus 20% of the value of your assets.
Yes, you can negotiate with the IRS by filling out a series of forms and submitting them. This process can be complicated and has a 40.3% success rate, so it is often better to work with a tax professional.
Individuals with a single income of less than $100,000, or a combined family income of $200,000, or are self-employed with a sudden 25% drop in income, and have debt less than $50,000 are eligible for the Fresh Start Program.
Yes, in most cases, there is a statute of limitations on IRS collections after 10 years. However, outstanding debt should be paid, relieved, or settled. Deciding to wait 10 years is not a good idea and could result in legal issues.
If you owe taxes but cannot pay, you can apply for a range of payment options from the IRS, including a short-term payment plan, an installment agreement, or a suspension of collection.
According to 26 U.S. Code § 7201, tax evasion is a federal crime that can result in up to 5 years of jail time. However, in many cases, the IRS does not seek criminal charges for smaller amounts of debt or debt due to a simple mistake.
