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Falling behind on tax obligations can quickly escalate into a serious situation, as the Internal Revenue Service (IRS) wields significant collection authority. Beyond the accumulation of interest and penalties, your unresolved tax debts may trigger severe enforcement actions, including wage garnishments, bank levies and property liens. The IRS’s collection division is particularly assertive in pursuing unpaid taxes, making it imperative that you take prompt and informed action.
Fortunately, taxpayers have several avenues to address their tax liabilities and get tax relief, even when immediate full payment isn’t feasible. The IRS provides various programs, such as installment agreements and hardship status for those experiencing genuine financial difficulties. But while you can navigate these options independently, the processes often involve intricate documentation and stringent eligibility criteria.
Professional tax relief companies offer valuable assistance in these scenarios. Employing tax attorneys, enrolled agents and other specialists, these firms possess in-depth knowledge of IRS procedures and available relief programs. Their expertise can potentially help you secure more favorable terms and avoid errors that could delay resolution.
Start exploring your tax relief options here today.
Below, we’ll take a closer look at some of the best tax relief companies across five different categories:
Best for money-back guarantee: Anthem Tax Services
When hiring a tax relief professional, it’s crucial to ensure your investment yields results, especially if you’re already in a challenging financial situation. Anthem Tax Services offers a money-back guarantee; if the company doesn’t save you money or restructure your payments, you can receive a refund, excluding a minimum deposit and any tax preparation or bookkeeping fees.
Learn more about tax relief support from Anthem Tax Services here now.
Best for businesses: Larson Tax Relief
Tax challenges aren’t exclusive to individuals; businesses, from single-member LLCs to large corporations, can also encounter various tax debts and issues. Larson Tax Relief assists with federal tax matters like payroll taxes and worker classification issues, as well as state tax concerns such as use taxes and franchise taxes.
Get started with Larson Tax Relief here.
Best for complicated tax issues: Community Tax Relief
For complex tax situations, Community Tax Relief stands out. The company provides comprehensive support covering over a dozen financial issues, offering assistance with numerous tax relief solutions like partial pay installment agreements and conditional expense installment agreements, beyond traditional installment plans.
Explore your options with Community Tax Relief now.
Best for cost: Tax Defense Network
The cost of tax relief services can vary based on your specific situation, but Tax Defense Network offers financing options starting at $99 per month, which can help make their services more affordable. They also provide customized tax relief solutions tailored to various budgets.
Best for customer service: Instant Tax Solutions
Selecting a reputable tax relief company is essential, but not every company has a great reputation, so it’s important to know who you’re working with. Instant Tax Solutions is known for its exceptional customer service, boasting a perfect 5-star rating on Trustpilot and an A+ rating from the Better Business Bureau.
What do tax relief companies do?
Tax relief companies specialize in helping taxpayers resolve their tax problems with the IRS and state tax authorities. These firms typically employ tax attorneys, certified public accountants (CPAs) and enrolled agents who understand tax law and have experience negotiating with tax agencies. Their primary goal is to reduce your tax burden through various legal means and help you become compliant with tax regulations.
When you hire a tax relief company, they’ll begin by analyzing your tax situation and financial status. This typically involves reviewing your tax returns, income, assets and liabilities to determine the best resolution strategy. Based on this assessment, they may recommend solutions like installment agreements, Offers in Compromise (settling for less than you owe), penalty abatement or innocent spouse relief.
Many tax relief companies also provide representation during IRS audits and collections. This means they communicate directly with the IRS on your behalf, saving you the stress of dealing with tax authorities yourself. They understand IRS procedures and can navigate complex bureaucratic processes more efficiently than most taxpayers.
While tax relief companies can provide valuable assistance, it’s important to note that they can’t make tax debts magically disappear or guarantee specific outcomes. Legitimate companies will be transparent about what they can realistically achieve based on your situation and won’t make promises that sound too good to be true. That’s why “it’s important to make sure any tax relief company you consider has a long business history and extensive experience managing tax debts,” Thomas Brock, a certified public accountant, says.
“Ideally, you would use a company owned by a licensed tax professional such as a certified public accountant, enrolled agent or tax attorney,” Logan Allec, CPA and owner of tax relief company Choice Tax Relief, says.
How much do tax relief services typically cost?
Tax relief services vary widely in cost, typically ranging from a few thousand dollars to tens of thousands of dollars or more, depending on the complexity of your tax situation and the specific services required. Most companies charge either flat fees for particular services or hourly rates for their tax professionals. For straightforward cases like setting up an installment agreement, you might pay on the lower end of the spectrum. However, complex negotiations or representation during a difficult audit could cost significantly more.
Many tax relief companies structure their payments in two phases. First, you’ll pay an investigation fee (which can vary but often ranges between $1,000 to $3,000) for the initial analysis of your tax situation and the development of a resolution strategy. If you decide to proceed with their recommended plan, you’ll then pay additional fees for implementation. Before committing, ask for a clear breakdown of all potential costs and get this information in writing to avoid unexpected charges later.
It’s worth considering the potential return on investment when evaluating these costs. If a tax relief company can save you $20,000 on a $50,000 tax debt, paying $5,000 for their services might be worthwhile. Some companies also offer money-back guarantees if they can’t secure a favorable resolution, though the terms of these guarantees vary significantly.
While the costs may seem high, attempting to resolve complex tax issues without professional help can sometimes lead to worse outcomes and potentially higher costs in the long run. That said, for simpler tax problems, you might be able to work directly with the IRS yourself using their taxpayer advocate service or setting up an installment plan online, saving the professional fees entirely.
Jake Safane contributed to this report.