5 Best Tax Relief Companies of February 2024

Massive tax debt generally is a big and hectic burden, particularly while you’re already struggling. Fortunately, there are skilled tax reduction providers for individuals who are hundreds of {dollars} in debt to the IRS.

To be clear: You can and will first talk about your tax debt straight with the IRS (see its web site for particulars). Not all tax reduction corporations are legit — or, for that matter, upstanding. Some corporations could also be unnecessarily costly or predatory, finally leaving you deeper in debt.

But in case your tax scenario is difficult otherwise you assume you’d profit from exterior help, chances are you’ll need to think about using a good tax reduction firm. They sometimes make use of quite a few tax professionals who may help you negotiate cost choices with the IRS and state tax companies, from establishing cost plans to pausing collections throughout instances of economic hardship (known as “currently not collectible” standing).

Read on to seek out out extra about the most effective tax reduction corporations, as decided by their availability, price and shopper opinions.

Our Top Picks for Tax Relief Companies

Best Tax Relief Companies Reviews

Why we selected this firm: Community Tax provides free consultations and inexpensive investigation charges that vary between $295 (for private circumstances) and $595 (for enterprise).

Community Tax reduction focuses on federal tax debt reduction, though it additionally provides restricted state tax help. Like related corporations, Community Tax handles purposes for all the pieces from installment agreements to provides in compromise.

Community Tax is likely one of the few corporations on our checklist to supply bilingual help each on-line and thru its representatives. In addition to tax debt reduction providers, Community Tax additionally boasts tax submitting, bookkeeping and enterprise accounting providers. Consultations are free, and its A+ BBB ranking is supported by constructive opinions and remarks in regards to the fast response time to buyer complaints.

The firm providers clients on a case-by-case foundation, however typically these with $7,500 or extra in tax debt or greater than two years of unfiled returns are good candidates. Community Tax provides a 10-day refund on its preliminary investigation charges; clients could also be eligible for a full refund if the corporate is unable to offer a potential decision or didn’t full the work needed. That mentioned, its preliminary investigation charges are a number of the extra inexpensive on our checklist, ranging between $295 and $595.

Visit Community Tax’s safe web site.

Why we selected this firm: Anthem Tax Services’ full money-back assure — which guarantees all of your a reimbursement in case your tax debt isn’t diminished or eradicated — is among the many greatest within the trade. (Note that the money-back assure doesn’t apply to bookkeeping, tax prep providers or the minimal deposit paid by purchasers.)

Anthem Tax Services provides each IRS tax debt reduction and company tax preparation providers. The firm helps you apply for IRS tax debt reduction packages like provides in compromise (OIC), harmless partner reduction and “currently not collectible” standing.

Notably, it additionally provides help with submitting for wage garnishment and tax levy launch — providers not generally provided by rivals.

Anthem’s money-back assure can be top-of-the-line within the tax debt reduction trade, providing all of your a reimbursement if it fails to safe any type of decision from the IRS — whether or not it’s a discount in cost quantities or debt forgiveness. It’s necessary to notice that mentioned assure doesn’t embody the preliminary investigation charge, which normally begins at $400, relying on the small print of your case. Pricing on the web site is a bit unclear.

Anthem takes on clients which have as little as $10,000 in tax debt and provides free consultations. As a common rule, the corporate prices a flat charge charge upfront — which may range drastically per particular person buyer however typically begins round $3,000 — although the value could change if extra providers are required alongside the way in which.

Visit Anthem Tax Services’ safe web site.

Why we selected this firm: Larson Tax Relief’s wide selection of enterprise tax providers — together with payroll and federal tax points, conflicts together with your income officer and employee classification points — make them a wonderful alternative for enterprise and company tax debt reduction.

Larson Tax Relief works with all types of tax debt reduction providers, from private IRS tax debt reduction to company tax help, and may help with delaying or stopping financial institution levies.

In addition to the massive variety of constructive opinions the corporate receives on-line, Larson stands out for its enterprise tax providers. The firm can deal with nearly all the pieces about enterprise tax preparation, together with paperwork for payroll taxes and company revenue taxes. This might be particularly helpful for small enterprise house owners or these with smaller accounting departments that want the assist.

Larson provides free consultations however does require a minimal of $20,000 in tax debt to take in your case.

According to Larson, it prices a minimal charge of $200 to file tax returns, between $250 and $500 for analysis and discovery, and a minimal charge of $2,500 for tax illustration providers.

Larson has a 15-day money-back assure, which can be difficult in case your case takes weeks to resolve.

Visit Larson Tax Relief’s safe web site.

Why we selected this firm: Optima’s proprietary app, which permits customers to file a free tax extension and helps them perceive what to do after they obtain an IRS discover, makes it the corporate with the most effective cell app within the trade.

Optima Tax Relief works with each kind of IRS and state tax reduction choice, from cost plans to “currently not collectible” filings. The firm’s employees boasts a number of sorts of tax professionals, together with enrolled brokers, tax attorneys and accountants.

Notably, Optima has an app that permits you to entry free assessments of any IRS assortment discover you obtain and also can assist you to file for an extension in your tax submitting deadline.

Optima additionally provides particular person and enterprise tax preparation providers in addition to free evaluations. During that free session, the corporate outlines its two-step strategy: 1) establishing a safety plan involving submitting paperwork to pause any fast IRS motion in opposition to you — which usually takes as much as 4 weeks — and a couple of) offering you with a case abstract.

Optima’s investigation charge is usually round $295, and it is advisable have a minimal tax debt of $10,000.

Visit Optima’s safe web site.

Why we selected this firm: Tax Defense Network’s availability on-line and on the telephone to each Spanish and English audio system makes it the most effective tax reduction firm for bilingual providers.

Tax Defense Network stands out for offering a completely bilingual (Spanish and English) customer support, each on-line and over the telephone. The firm additionally accepts tax debt as little as $5,000, making it extra accessible than many rivals.

Aside from the total vary of IRS and state tax debt reduction choices that rivals additionally work with (cost plans, provides in compromise, harmless partner reduction and so forth), Tax Defense Network provides specialised enterprise tax options comparable to shut company submitting providers for when companies have to shut down completely. Its instructional assets are additionally extra strong than different corporations’, together with an offer-in-compromise calculator.

Despite the corporate’s free consultations, its three-day money-back assure is far shorter than rivals — many corporations supply at the least 10 days. Regardless, its intensive certifications and memberships in nationwide tax skilled organizations assist to assist the quite a few constructive opinions from its present and former clients.

Visit Tax Defense Network’s safe web site.

Other Tax Relief Companies We Considered

Below are some corporations that we thought have been value trying into however that finally didn’t make our checklist. Though they might not be the most effective for each scenario, they may nonetheless supply providers that some people could discover helpful, relying on their circumstances.

Precision Tax Relief

Aside from tax debt reduction, Precision provides help with securing wage garnishment and levy releases, which may present a big quantity of economic reduction if granted by the IRS. Individual and enterprise tax preparation providers are additionally obtainable to purchasers, to keep away from tax debt points within the first place.

Precision stands out for providing interest-fee cost plans for its providers. Its 30-day money-back assure can be pretty beneficiant, as many — however not all — tax debt points might be resolved throughout the span of three to 4 weeks.

Fees and charges usually are not marketed upfront, however they’re offered through the free consultations.

• Minimum debt required: $10,000
• Certifications and memberships: NAEA, ASTPS, AICPA
• BBB ranking: A+

Visit Precision Tax Relief’s safe web site.

Victory Tax Lawyers

Victory Tax Lawyers focuses on tax controversy points fairly than common debt reduction. However, Victory Tax does deal with frequent IRS tax debt reduction choices comparable to provides in compromise and installment agreements.

Victory Tax provides help to each people and companies, together with providers comparable to tax preparation, tax levy and lien protection and audit illustration. Notably, it additionally assists with Report of Foreign Bank and Financial Accounts (FBAR) filings, which have to be filed when you’ve got a sure amount of cash in financial institution accounts in nations aside from the U.S.

Furthermore, it solely works with circumstances involving a minimal of $25,000 in tax debt, which is significantly greater than different corporations on this checklist.

• Minimum debt required: $25,000
• Certifications and memberships: ASTPS, the California State Bar and U.S. Tax Court
• BBB ranking: A+

Visit Victory Tax Lawyers’ safe web site.

Tax Relief Guide

Understanding and navigating tax reduction choices might be overwhelming. The following information to tax reduction consists of explanations of fundamental ideas it is advisable know, in addition to data on the numerous packages that tax reduction corporations may help you apply for.

What is tax reduction?

Tax debt reduction refers to quite a few measures and techniques that assist people pay or cut back their tax legal responsibility, particularly when in search of assist with IRS debt and state tax debt. These embody cost plans, settlements (known as provides in compromise) and wage garnishments.

While state and federal tax collectors supply related plans, native laws can range broadly. It’s necessary to examine your state’s comptroller’s workplace for the precise choices obtainable to you.

It’s essential to notice that anybody can negotiate choices for paying again taxes straight with the IRS. However, there are conditions when hiring professionals generally is a worthwhile funding.

What are tax reduction providers?

Tax reduction providers — also called tax decision companies — use their information of federal and state legislation to assessment your paperwork and monetary scenario, after which establish the most effective different. The course of sometimes entails submitting paperwork and speaking with the IRS in your behalf.

Some corporations make use of tax attorneys who can, in some notably advanced circumstances, act as intermediaries in your negotiations with the federal government.

How do tax reduction corporations work?

Tax reduction corporations work with the IRS on taxpayers’ behalf to cut back the quantity of again taxes owed.

However, it’s value declaring that you are able to do just about all the pieces that tax reduction corporations do by talking straight with the IRS at no cost. The tax reduction trade is a tough one — it has a repute for upcharging clients or doling out false guarantees.

For occasion, in case your tax debt points are only a matter of lacking final yr’s tax funds, you is likely to be higher off merely reaching out to the IRS your self, as there’s little these corporations can do you can’t.

But in case your tax debt case entails a big stability, a number of financial institution accounts, belongings, years of unpaid taxes or different particulars that complicate your tax scenario, a tax reduction firm might be able to probably assist by sorting by way of your paperwork and figuring out the most effective choices obtainable. In very uncommon circumstances, they might even be capable to discover issues that the IRS missed or negotiate a decrease tax invoice.

How a lot do tax reduction corporations cost?

Tax reduction corporations typically use two frequent pricing fashions: a proportion of the debt owed and flat hourly charges. The most cost-effective alternative will rely on the dimensions of your tax debt and the way difficult your case is.

• Percentage-based. Most corporations that function on a proportion foundation have charges that vary from 10% to fifteen% of your tax debt. If, for instance, your debt is $10,000 (many corporations’ required minimal debt) you possibly can count on to pay a minimal of $1,000 to $1,500.
• Flat hourly charge. An organization that prices a flat hourly charge is likely to be extra inexpensive if the quantity you owe is excessive, however your case is comparatively easy. The common hourly charge for tax reduction corporations can vary from $240 to $1,000.

It’s not unusual for companies to cost completely different costs for particular providers, so it’s essential so that you can ask for as a lot data upfront as potential. Get these quotes in writing, and ensure they embody the potential of any extra charges and all obtainable cost choices.

Common tax issues

Tax issues can embody points ensuing from errors made throughout submitting or just not submitting a tax return in any respect. Below are some explanations of the commonest tax points that tax reduction corporations and tax companies can deal with for you:

Back taxes

Back taxes are taxes owed as a result of unfiled tax kinds or errors made throughout submitting. These can accrue curiosity, which may trigger your tax debt to balloon to unmanageable ranges. The IRS publishes the rates of interest for penalties quarterly; examine the web site for essentially the most up-to-date data.

One approach to keep away from incurring again taxes is by utilizing tax preparation software program yearly. Be positive to take a look at our article on the most effective tax software program for those who’re in want of a serving to hand.

Wage garnishments

When your tax invoice is due, the IRS will ship you a sequence of assortment notices. If you proceed to not pay and ignore these notices, the IRS could determine to gather parts of your debt straight out of your wages by garnishing them.

Your employer receives Publication 1494 to assist decide the portion of your wages that’s exempt from garnishment based mostly in your marital standing and variety of dependents. Garnishment normally continues till the debt is happy, however tax reduction corporations might be able to help by securing different cost preparations.

Tax liens

Similar to a wage garnishment, a tax lien is a public discover issued by the IRS to monetary establishments and different related events declaring their proper to your property to fulfill your debt.

Tax levies

A extra drastic variation of a tax lien, a tax levy signifies that the IRS is imposing its authorized proper to grab your property as a way to pay your debt.

Tax audits

If the IRS spots irregularities in your taxes, the company could select to audit you, which means it requests extra details about your return after which examines it to make sure it’s correct. Overall, 0.38% of revenue tax returns have been audited for fiscal yr 2022.

Tax debt reduction choices

The following tax debt reduction choices can be found to anybody and are available straight from the IRS. Some state companies could supply related packages for native taxes. Before reaching out to tax reduction corporations, it’s at all times a good suggestion to examine the IRS web site or communicate with a consultant over the telephone about your choices.

Remember that a lot of the tax decision providers that non-public corporations supply contain reviewing your case particulars and figuring out the best choice in your scenario based mostly on the data they discover. They don’t have entry to any data that you might not acquire your self, and so they can not assure any particular outcome.

If your tax scenario is comparatively easy — which means you don’t have a number of sources of revenue, a posh inventory portfolio, et cetera — you’re normally higher off talking proper to the IRS. Here are a number of the tax debt decision choices that the IRS provides:

Offers in compromise

Offers in compromise (OIC) are a approach to settle your tax debt for lower than the total quantity owed. Under this association, the IRS considers components comparable to your capacity to pay, revenue, bills and belongings to find out whether or not you might be eligible.

Per the IRS, provides in compromise are solely thought of if it has cause to imagine that the decrease quantity is essentially the most that may be collected “within a reasonable period of time,” which makes this one of many least generally provided tax settlement choices.

Innocent partner reduction

This kind of tax debt reduction applies when your present or former partner commits an error when submitting taxes. Innocent partner reduction exempts you from tax penalties that may apply on account of these submitting errors. This choice solely applies if the IRS determines that you just had no cheap approach of figuring out in regards to the omission or errors.

Installment settlement

If you don’t have the cash to cowl your tax debt in a single cost, the IRS could supply an installment settlement, or installment plan, during which you pay your debt over time. There are two sorts of IRS installment agreements: short-term (180 days or much less) and long-term (month-to-month funds for so long as it is advisable pay your debt).

While there isn’t a certain amount you will need to owe to use for an installment settlement, on-line purposes are accepted for quantities as much as $50,000 (long-term) or $100,000 (short-term), making it one of many extra frequent and accessible choices for people who need to straight negotiate with the IRS. Beware: You could should pay setup and processing charges.

Penalty abatement

Sometimes often called “first-time penalty abatement,” this tax reduction choice is often obtainable for lesser tax penalties comparable to failing to make a cost on a single tax return or lacking a submitting deadline. The principal requirement to be eligible for the sort of reduction is having no penalties for the earlier three tax years, though you will need to have additionally filed or at the least requested an extension in your present taxes.

Currently not collectible

Currently not collectible (CNC) standing signifies that each you and the IRS agree that whereas taxes are owed, you might be presently unable to pay them. As a common rule, you possibly can apply for CNC standing when paying your taxes represents an undue burden in your needed dwelling bills. This refers to eventualities comparable to being unable to pay important payments like utilities or lease or not having sufficient cash left over for groceries on account of your tax debt cost.

If the IRS grants you CNC standing, your funds are reviewed often till it determines that you just’re in a position to pay your debt. Additionally, any future tax refunds you obtain could also be used to pay down your debt whereas in CNC standing.

Other providers provided by tax reduction corporations

Audit protection

Some licensed tax professionals supply assured help within the occasion that your tax returns are audited. Think of it as you’d automobile insurance coverage: You pay the tax skilled an extra quantity up entrance, and so they agree that will help you resolve any tax audits that may come up sooner or later (normally as much as three years).

Warning about tax reduction scams

Tax debt can create plenty of stress, which may make any supply to eliminate it appear engaging. However, because the Federal Trade Commission warns, not all tax reduction corporations have your greatest pursuits at coronary heart. In reality, they might benefit from your stressed-out state.

Tax debt reduction corporations’ pink flags

Because solely the IRS can decide whether or not you qualify for reduction packages, you need to avoid any tax reduction firm vowing to decrease your debt or making claims that appear too good to be true.
Assurances that you just qualify for a number of packages — with out even looking at your case — or guarantees {that a} agency can positively settle your tax debt in a selected timeframe ought to increase pink flags immediately.

Many fraudulent corporations don’t even hassle submitting the mandatory paperwork to use for reduction packages; as an alternative, they mislead clients and pocket their cash with out having executed any work.

According to FTC reviews, some corporations have even made unauthorized prices to clients’ bank cards lengthy after the circumstances have been closed.

Here are some pink flags to look out for when evaluating tax reduction corporations:

• Company representatives make ensures or guarantees with out taking a look at your case particulars
• The firm fails to ask for specifics about your tax debt scenario
• Upfront cost is demanded in trade for “guaranteed” outcomes
• The agency contacts you first by chilly name, direct mail and/or e-mail
• The firm makes use of delay ways comparable to asking you for a similar paperwork again and again

Other IRS-related scams

In addition to tax reduction scams, you also needs to pay attention to different IRS-related scams, such because the IRS textual content message rip-off that the company warned about in 2022. (A good tax reduction firm could even give you steerage on easy methods to keep away from these scams.)

Trustworthy tax reduction corporations will keep away from making particular guarantees and be clear about their prices and course of up entrance, typically providing free consultations.

Make positive that the corporate you select is accredited with a number of tax skilled organizations, such because the National Association of Tax Professionals, the National Association of Enrolled Agents or the Association of International Certified Professional Accountants, to cut back the probabilities of falling for a rip-off.

Alternatives to utilizing tax debt reduction corporations

Direct negotiation with the IRS

As talked about above, in case your tax debt is relatively small — typically, lower than $10,000 — you need to strongly take into account negotiating with the IRS your self. If filling out your tax returns is a comparatively easy course of, making use of for any of the IRS’s tax debt reduction packages may very well be significantly cheaper than paying for a tax debt reduction firm’s providers.

Tax reduction attorneys

On the opposite hand, for those who really feel your tax debt scenario is extra difficult, working with tax reduction attorneys is likely to be the way in which to go. Some, however not all, tax debt reduction corporations make use of attorneys. A tax lawyer is much extra specialised than a licensed public accountant or an enrolled agent, which might be helpful when your case would possibly result in prison prices.

Tax debt reduction packages

The IRS additionally provides quite a few tax help packages designed to assist people file their taxes on time, amongst different issues.

Check out:

Latest News About Tax Relief

Although the IRS was beforehand letting past-due tax payments slide through the pandemic, the company has now introduced again assortment efforts. This yr’s tax season began Jan. 29, and particular person revenue taxes are due for residents of most (however not all) states on April 15.

Before you pay to file your taxes, try whether or not you’re eligible to attempt the pilot of the IRS’s free direct file program. In addition to testing this method, the IRS has mentioned it’ll proceed to roll out enhancements to customer support through the 2024 tax season.

How We Chose the Best Tax Relief Companies

If you’re on the lookout for skilled help together with your tax debt points, consulting a tax reduction firm is probably going on the prime of your thoughts. While it’s totally potential (and, in come circumstances, advantageous) to barter with the IRS by yourself, consulting an expert can typically present higher peace of thoughts.

We used the next standards to decide on the most effective tax reduction corporations:

Availability

When individuals consider tax debt reduction, they largely take into consideration the IRS, which is a federal company. However, tax debt also can affect individuals on the state degree. We picked corporations that might take care of each federal and state tax points and that have been obtainable nationwide.

Cost

We selected corporations that supply free consultations and versatile cost plans, making their providers accessible to all who want them.

Credibility

To be certain that you solely work with corporations with a strong monitor document, we checked out their data with the Better Business Bureau and buyer opinions on web sites comparable to Trustpilot.

We additionally solely picked corporations with at the least one certification, accreditation or membership in main tax skilled organizations.

Summary of Money’s Best Tax Relief Companies