Tax relief companies are often considered disreputable due to customer complaints about false promises, high fees, and even scams. While the tax relief industry has some bad players, there are also plenty of reputable tax relief companies with proven success records. To help you tell the difference, we’ve rounded up the seven best tax relief companies that offer free consultations, were in business for at least five years, and had no complaints filed with the Federal Trade Commission (FTC). Precision Tax Relief is our top choice of tax relief companies because it offers a money-back guarantee and offers transparent pricing. We then reviewed the types of services offered, evaluated the company’s customer service, analyzed customer reviews, and examined the company’s pricing structure, minimum debt amounts, and any money-back guarantees. Keep reading to learn about our top seven tax relief companies. Best Tax Relief Companies for September 2024 Best Tax Relief Companies for September 2024 The Bottom Line Compare Companies How to Choose Pros and Cons Why You Should Trust Us FAQs Guide to Tax Relief Key Specs Why We Chose It Precision Tax Relief comes out a clear winner across all categories, including the company’s generous money-back guarantee, transparent pricing, and convenient communications channels. We found this to be the most trustworthy tax relief company that we evaluated. Pros & Cons Pros Offers a 30-day money-back guarantee All-inclusive flat-rate fee Customer service available by phone, text, email, and live chat In business since 1967 Cons Doesn’t handle standalone state tax debt No tax audit representation Limited online resources Overview Reputable tax relief companies are hard to come by, but Precision Tax Relief rose to the top in nearly every aspect of our analysis. First and foremost is the company’s 30-day money-back guarantee, one of the longest in the industry. The company's pricing is based on a flat-rate fee presented during a free consultation. Your fee only increases if the scope of work changes from your initial quote due to new information that arises after your consultation. Payment options are flexible—between one lump-sum payment or a zero-interest payment plan. Precision does not require that clients have a minimum debt amount. However, a call with their customer service department revealed that their base service fee may not be worth it for taxpayers who owe less than $10,000 with no other variables. The company only takes cases if the possible debt relief makes the service fees worthwhile for clients. Precision Tax Relief has been in business since 1967 and offers convenient customer service options via phone, text message, email, and live chat. The company is certified by the American Society of Tax Problem Solvers, which is awarded to certified public accountants (CPAs) with a proven ability to solve a range of problems with the IRS. The company does have a few limitations. For example, it doesn’t offer tax audit representation, a service many competitors provide. Precision Tax Relief also deals exclusively with federal taxes and does not handle state tax issues. Key Specs Why We Chose It Anthem Tax Services’ money-back guarantee is the only one of its kind in the tax relief industry. The guarantee has no time limit and promises to return your fees should the company fail to make any change to your IRS tax debt repayment schedule. Pros & Cons Pros Offers a money-back guarantee with no time limit Payment plans available Accredited by NATP and NAEA Cons Money-back guarantee doesn’t ensure reduced total payment amount Mixed customer reviews Limited consumer education focus Overview Many tax relief companies don’t offer a money-back guarantee. Others offer a full refund for the first 14 or even 30 days. Anthem Tax Services offers a unique, no-time-limit guarantee. If the IRS refuses to reduce either your total debt or your monthly payment amount, the company will refund any fees paid for its services. Keep in mind that the money-back guarantee doesn’t constitute a promise to reduce your total tax liability. Anthem may only be able to reduce your current monthly payment, so it won't change how much you owe. Rather, you'll pay smaller amounts over a longer period. Your financial burden may drop but won’t save you any money in the long run. Longer schedules mean larger overall because of interest charges over a longer time. The company charges a flat-rate fee determined on a case-by-case basis. This fee can be broken down into a payment plan for those who can’t afford to pay upfront. The company is accredited by both the National Association of Tax Professionals and the National Association of Enrolled Agents. The reviews are positive (the company earned four out of five stars on most review sites), but we noticed a handful of customers complaining about a lack of regular communication and updates. It might be a good idea to ask upfront about what you can expect in terms of communications and updates from your case manager. You can contact Anthem by visiting the company's website or calling 844-377-6553. Key Specs Why We Chose It If you have a large tax debt, standard percentage-based fees will vastly overcharge you, in general, compared to the amount of work required for your case. Fortress Tax Relief’s hourly-based fee structure gives you the best opportunity for savings with a major IRS tax debt. Pros & Cons Pros No percentage-based fee structure Offers a monetary customer service guarantee Handles state tax debt in all 50 states Cons Minimum tax debt of over $10,000 Not accredited by any industry organizations Limited business services Overview Fortress Tax Relief offers a unique approach by generating quotes based on the estimated time required. Hourly fees for an attorney vary, but typical EA hourly rates range from $100 to $200 per hour. For consumers with large tax debt, this means you’ll probably pay significantly less than you would with percentage-based tax relief companies. (Still, it never hurts to get a few quotes from different companies just to make sure.) There are a few other perks to working with Fortress Tax Relief, including its comprehensive customer service guarantee. If you have an active case, customer service will return your phone calls and emails within two business days. If the company fails to meet this promise more than once, you'll receive a $100 account credit for each subsequent occurrence. While Fortress Tax Relief provides individual state tax debt services in all 50 states, its business services are relatively limited. The company is also not a member of any of the common industry accreditation organizations. Key Specs Why We Chose It CommunityTax doesn’t have the lowest minimum debt requirement in the tax relief industry, but it deserved the Best for Small Tax Debt title due to its ample resources and services aimed at those with lower amounts of debt. If your tax debt is under $10,000, you may find all the help you need for free through CommunityTax’s generous free online resource library and mobile app. Pros & Cons Pros Offers a 14-day money-back guarantee IRS-approved continuing education provider Community Tax Assurance Program with mobile app May accept cases under $10,000 Cons Pricing less straightforward than competitors Chat support lacks functionality Overview You can typically settle tax debts under $10,000 by yourself without much issue. However, if you need some professional assistance to resolve a small tax debt, it may accept cases as low as $7,500—among the lowest of all competitors. CommunityTax will take on cases if it believes the cost is worth it to the taxpayer. It also offers valuable resources and services to those with small tax debt. CommunityTax’s website is a trove of free resources that include guides and links to relevant IRS resources. This is a great place to start to see if your small tax debt requires professional help at all. You might even find the free information available through CommunityTax's website is enough to navigate the debt on your own. The service is an IRS Approved Continuing Education Provider, which means it is authorized to provide continuing education programs to tax professionals. This is why we have confidence in the information available through the company’s website and in the knowledge of CommunityTax case managers. CommunityTax also offers a $39 per month program called the Community Tax Assurance Program. It includes access to a mobile app that performs tax account monitoring, as well as access to your IRS transcripts and annual 1040 tax returns. TAP is designed as a preventive solution to keep taxpayers from falling behind on payments with better education and preparation. If you’re struggling with a small amount of tax debt, this program could help you continue to stay out of debt after you’ve resolved your current financial situation. Although we were impressed by CommunityTax’s 14-day customer service guarantee, we found the company’s fee structure to be less transparent than some competitors. We were advised that some customers pay a flat fee upfront while others may incur ongoing charges. We also noticed a trend in some customer reviews of issues with CommunityTax’s handling of state tax debt. Key Specs Why We Chose It Small business owners will find that Enterprise Consultants Group is a one-stop shop for business tax needs. From payroll taxes to tax audit representation, we’re confident that you’ll find the best business services here. Pros & Cons Pros Full range of small business services Accredited by NATP Consultation includes free IRS transcript analysis Cons No guarantee Few online resources State tax services mostly California-specific Overview Most tax relief companies offer services for both individuals and businesses, but they’re generally more cut out for individual tax debt. Enterprise Consultants Group is the exception. The company offers the most well-rounded catalog of business services we could find among all tax relief organizations. Services tailored to small businesses include tax-related issues such as payroll tax resolution and tax accounting, in addition to business licensing, registered agent services, and other needs requiring an accountant or lawyer. Enterprise Consultants Group offers a free consultation, which is standard among tax relief companies. However, the group includes a free IRS transcript analysis for individuals and businesses. This is something most competitors charge for, so it’s a great value with no commitment. Enterprise Consultants Group is accredited by the NATP and holds additional law-related credentials. However, it doesn’t offer a guarantee, and we were disappointed by the lack of resources on its website. We also found that most of its state tax services were tailored toward individuals and businesses in California, where the company is headquartered. This doesn’t necessarily mean it can’t handle a case involving state tax debt from another state, but it’s certainly something to ask about during a consultation. Key Specs Why We Chose It Tax Defense Network offers bilingual tax assistance to those who speak Spanish and may be struggling to communicate with the IRS. With the company’s long-standing good record, we’d recommend it as a trusted intermediary for Spanish speakers with tax debt. Pros & Cons Pros Offers tax relief services in English and Spanish In business since 2007 Cons Website only available in English Overview Dealing with the IRS on your own can be overwhelming, but even more so when English isn’t your first language. If you know a native Spanish speaker struggling with tax debt, Tax Defense Network can help. The company has bilingual tax professionals on staff and a dedicated customer service line for assistance in Spanish. Tax Defense Network requires a minimum debt of $5,000, which is typical for a tax relief company. This makes it a fair choice for situations where the debtor is struggling to communicate with the IRS due to a language barrier. Having started in 2007, Tax Defense Network is a well-established tax relief company with an overall positive record. Key Specs Why We Chose It ALG Tax Solutions offers a complete library of free educational resources designed to empower consumers and prevent future tax debt. We appreciate the company’s commitment to helping customers find the best solution for their personal situation, regardless of whether that solution includes paid tax relief services. This earns ALG Tax Solutions its place as the tax relief company with the Best Resources. Pros & Cons Pros Online library with free eBooks, calculators, and resources Offers services tailored to individuals, self-employed, and businesses Low-cost tax help evaluation available Cons No guarantee Overview One of the best indicators that a tax relief company has your best interests in mind is an education-based approach. With educational resources, tax relief companies can empower their customers with the knowledge and skills required to prevent further tax debt. This is exactly what ALG Tax Solutions does with its online resource library. ALG Tax Solutions’ free resources include online calculators, eBooks, and other useful tools. For example, the company offers a free online meter called the IRS Letter Decoder which shows you how serious a notice from the IRS is simply by entering a code found on the letter. ALG Tax Solutions was founded in 2011. ALG Tax Solutions also offers a standalone service called a tax help evaluation, a relatively low-cost option in which a tax professional reviews your tax documentation, conducts a full financial review, and provides recommendations for how to proceed. There’s no obligation to sign up for further tax relief services after completing this service. The professional who reviews your case may even recommend steps to resolve the situation on your own. One drawback to working with ALG Tax Solutions is that the company only deals with federal IRS taxes. State tax lien services are available for individuals and businesses. ALG Tax Solutions offers no guarantee on its services. Precision Tax Relief distinguished itself from its competitors in multiple ways, helping it earn our selection as best overall. Its pricing comes in the form of a flat rate that is clearly stated upfront, and the company also offers one of the longest money-back guarantees we found at 30 days. Customers also can communicate with company representatives in multiple ways—phone, text, email, and live chat. Tax debt is more common than you might think. At the end of 2023, more than 11.37 million Americans were behind on their taxes by a combined total of more than $158.57 billion. Tax relief companies promise to help taxpayers who are in distress. These businesses step in to advocate on your behalf to settle any unresolved tax debt. They do this by working with the IRS and state tax agencies to either reduce or eliminate your outstanding tax bill. Most companies charge a fee, which can be a flat rate or an hourly charge. Others may charge you a percentage of your outstanding debt. Be warned, though, as some companies may make lofty claims and charge you exorbitant fees without following through on their promises. Tax Day for most filers in the United States is April 15. If that date falls on a holiday or a weekend, the deadline is extended to the next business day. You may apply for an extension before the tax deadline if you need more time. Corporations that file their taxes on a calendar year must also submit their taxes by April 15. If your business year runs on a different fiscal year, the deadline may change. For instance, if your company runs on an April 1 to March 31 cycle, you must submit your taxes on June 15. It depends on how much you owe, your comfort level in negotiating with the IRS, and the amount of time you have. Most tax relief programs won't handle debts worth less than about $10,000 because the fees you pay for the service are more likely to exceed any negotiated savings on small debts. Even if you owe more than $10,000, you have to decide if the fees are worth having a third party negotiate on your behalf. Tax delinquency can lead to wage garnishment and asset seizure, which further impacts your finances. It may even send you spiraling deeper into debt. This is when some people turn to tax relief companies as an option. Tax relief companies say they can help you with your tax debt. Some may work for you by reviewing your tax situation and advocating on your behalf. After your consultation, the company may offer you advice about your next steps. If you continue working with them, they may charge you additional fees to act in your interests. Tax relief companies may be able to help you with the following common problems that taxpayers may face: It’s common for tax relief companies to calculate fees based on a percentage of the overall tax debt you currently owe to the IRS. With large tax debt, this can quickly add up without reflecting the number of hours required to resolve a higher-debt case. For example, a $20,000 debt probably won’t take twice the amount of work to resolve than a $10,000 debt. Pros Advocate working for you: Professional deals with the IRS for you Getting you up-to-date: Help you file back taxes so you can get back on track Settlements: Arrange payment schedules, remove liens and garnishments Cons Expensive: You may have to pay upfront flat fee or percentage of your outstanding balance May not lower your tax bill: No guarantee that your debt is lowered Potential for scams: Approach companies that charge high fees with caution Know how to spot and avoid tax relief scams. You may receive emails and/or phone calls promising to help you deal with your tax debt, but be cautious about communicating with them. No reputable company will reach out to you out of the blue to discuss tax relief. They often use promises and pressure tactics to get you to get on board with them. This includes promising to eliminate your entire tax debt and/or telling you that you need to act immediately. They almost always want you to pay them before any services begin through non-traditional ways, such as cryptocurrency transfers, gift cards, money transfer services, or payment apps. If you are ever approached, do not engage with the company. Report any suspicious activity to the FTC or your state attorney general's office. For this analysis, we began by evaluating more than 20 tax relief companies and scoring them based on different criteria. We only evaluated companies that offered free consultations, had been in business for at least five years, and had no complaints filed with the Federal Trade Commission (FTC). We looked at the types of services offered and evaluated the company’s customer service. We analyzed customer reviews using various websites, taking into consideration any relevant certifications or accreditations. Finally, we asked about the company’s pricing structure, minimum debt amounts, and any money-back guarantees. Investopedia launched in 1999 and has been helping readers find the best tax relief companies since 2020. Tax relief helps individual and corporate taxpayers reduce their tax liabilities. This is normally done through tax credits, deductions, and inclusions. For instance, child tax credits give taxpayers with children a break to reduce their tax bills at the end of the year. Tax relief can also be used to solve any tax debt-related issues taxpayers have, including delinquent tax bills. There are companies that taxpayers can use to help them communicate with the IRS (or tax agencies in other countries) about tax debt. Tax relief companies or tax settlement firms are for-profit organizations that offer to negotiate with the IRS to reduce your overall debt or monthly payment. They are also called debt relief companies but only deal with tax-related debt. Legitimate firms won't offer to do anything you couldn't do on your own; their value comes from their experience with the process. The IRS clearly describes its collection process, so be sure whatever promises a tax relief company is making to you matches that procedure. Six of the seven tax relief companies on our list are accredited either by the IRS or a reputable third party. Determining the most reputable company depends on perspective, but looking at which organizations endorse a company's services is a good way to determine if it is legitimate. Even if a company claims to be accredited or otherwise endorsed, it's best to double-check that information via a neutral source. You are unlikely to get a tax debt entirely forgiven, but you can ask the IRS for an offer in compromise. This is typically what you pay tax relief companies to do on your behalf. It means that you are asking the IRS to reduce your debt because you don't have the assets to pay or because paying the debt would cause undue economic hardship. Tax relief companies can help you put together the best argument to win this kind of case. A debt to the IRS and using a tax relief company to help settle that debt have no direct impact on your credit score. Tax debts and even liens that may be placed on your property due to tax debts are not reported to the major credit bureaus. However, a lien on your property, for example, is a public record, and lenders could discover them that way. In addition, borrowing money to pay your tax debt could indirectly affect your credit score. The IRS has what it calls the Offer in Compromise program to help people settle their tax debts for less than the full amount owed. You may qualify if you can demonstrate financial hardship, including low income, high expenses, or an inability to pay. You can only submit an offer if you aren't filing for bankruptcy and filed all of your tax returns. The IRS will notify you if your offer is accepted. You can get full details about filing an Offer in Compromise from Form 656-B. You are not required to seek outside help to deal with this IRS, which means you can represent yourself when you negotiate your case with the IRS. Tax laws can be complicated and dealing with the IRS may be intimidating, which is why most people choose to enlist the services of a tax relief company, tax attorney, or another professional. It's always important to screen anyone you may want to hire to ensure that you're getting the best representation possible. There are several things you can do if you believe you are the victim of a tax relief scam. First, you can alert the IRS to the tax relief scheme so the agency can take note of the company and situation. Next, consider contacting the attorney general's office in your state. You should also contact the Federal Trade Commission. The agency enforces laws to protect consumers and prevent fraud. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Precision Tax. "FAQs." Precision Tax. "Frequently Asked Questions." Anthem Tax Services. "About Us." Anthem Tax Services. "Millions Of Dollars Saved In Back Taxes." Fortress Tax Relief. "Tax Relief Services." Fortress Tax Relief. "Tax Relief Services." Tax Defense Network. "About." ALG Tax Solutions. "IRS Letter Decoder." ALG Tax Solutions. "Tax Help Evaluation." Internal Revenue Service. "SOI Tax Stats - Delinquent Collection Activities - 2023 fiscal year." Federal Trade Commission. "Trouble Paying Your Taxes?" IRS. "The IRS Collection Process." Experian. "Do Taxes Affect My Credit Score?" Related Terms Widow(er)'s Exemption: Definition, State and Federal Tax Rules A widow(er)'s exemption is one of several forms of state or federal tax relief available to a surviving spouse in the period following their spouse's death. more Qualified Higher Education Expenses: What They Are and How They Work A qualified higher education expense is a tax credit for the parents of students attending a college or other post-secondary institution. more Filing Extension: What It Is and How It Works A filing extension is an exemption made for taxpayers who are unable to file their federal tax return by the regular due date. more A flow-through entity is a legal business entity that passes income to the owners and/or investors of the business. It's sometimes referred to as a disregarded entity. more Tax Liability: Definition, Calculation, and Example Tax liability is the amount an individual, business, or other entity is required to pay to a federal, state, or local government. more Qualified Electric Vehicle: What It is, How it Works A qualified electric vehicle allows the owner to claim a nonrefundable tax credit. moreBest Tax Relief Companies for September 2024
Best Overall : Precision Tax Relief
Best Guarantee : Anthem Tax Services
Best for Large Tax Debt : Fortress Tax Relief
Best for Small Tax Debt : CommunityTax
Best for Businesses : Enterprise Consultants Group
Best for Spanish Speakers : Tax Defense Network
Best Resources : ALG Tax Solutions
The Bottom Line
Compare the Best Tax Relief Companies
Company Cost Accreditation Minimum Tax Debt Amount Precision Tax Relief Best Overall All-inclusive flat-rate fee American Society of Tax Problem Solvers (ASTPS) No requirement (but not justifiable for taxpayers who owe less than $10,000) Anthem Tax Services Best Guarantee Flat-rate fee on a case-by-case basis National Association of Tax Professionals (NATP) and National Association of Enrolled Agents (NAEA) None listed Fortress Tax Relief Best for Large Tax Debt Hourly fee structure Not accredited $10,000 CommunityTax Best for Small Tax Debt Flat-fee upfront (possible ongoing charges) IRS-approved continuing education provider $10,000 ($7,500 in some circ*mstances) Enterprise Consultants Group Best for Businesses Free consultation and IRS transcript analysis National Association of Tax Professionals (NATP) None listed Tax Defense Network Best for Spanish Speakers Fees vary American Institute of CPAs (AICPA), American Society of Tax Problem Solvers (ASTPS), National Association of Tax Professionals (NATP), and National Association of Enrolled Agents (NAEA) $5,000 ALG Tax Solutions Best Resources Fees vary (provides low-cost options) American Institute of CPAs (AICPA) None listed Guide to Choosing Tax Relief Companies
What Is a Tax Relief Company and How Do They Work?
Are Tax Relief Programs Worth It?
Does Tax Relief Work?
How to Choose a Tax Relief Company
Pros and Cons of Tax Relief Companies
Why You Should Trust Us
Frequently Asked Questions
What Is Tax Relief?
Are Tax Relief Services Legitimate?
Who Is the Most Reputable Tax Relief Company?
How Do I Get My Tax Debt Forgiven?
Does Tax Relief Affect Your Credit Score?
Does the IRS Forgive Debt?
Can I Negotiate my Tax Debt?
How Do I Report a Tax Relief Scam?
Guide to Tax Relief
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Capital Gains Tax Rates and Potential Changes in 2025 How Much Will It Cost to Hire an Accountant to Do My Taxes? Widow(er)'s Exemption: Definition, State and Federal Tax Rules Qualified Higher Education Expenses: What They Are and How They Work What Will I Pay for Tax Preparation Fees? Filing Extension: What It Is and How It Works
