Best Tax Relief Companies

Get out from under IRS debt

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Tax debt is more common than you might think. At the end of 2020, more than 8.4 million Americans were behind on their taxes—nearly one in 40 citizens. Delinquencies totaled nearly $114 billion, just over of $13,500 per taxpayer on average.

So what do you do when you fall into five figures of debt with the IRS? Tax delinquency can lead to wage garnishment and asset seizure, which will further impact your finances and might even send you spiraling deeper into debt. This is when some people turn to tax relief companies as an option.

Tax relief companies are sometimes thought to be disreputable due to customer complaints about false promises, high fees, and even downright scams. While it’s absolutely true that the tax relief industry has some bad players, there are also plenty of reputable tax relief companies with proven records of success. To help you tell the difference, we’ve rounded up the seven best tax relief companies in the business.

The 7 Best Tax Relief Companies of 2022

Best Overall : Precision Tax Relief


Precision Tax Relief

Precision Tax Relief

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 bases its pricing on a flat-rate fee presented during a free consultation. The only way your fee will increase is if the scope of work changes from your initial quote due to new information that was not provided during your consultation. Payment options are flexible with a choice 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. However,  they only take on 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 (ASTPS), which is awarded to CPAs with a proven ability to solve a range of problems with the IRS.

The company does have a few limitations. For example, they don’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.

Best Guarantee : Anthem Tax Services


Anthem Tax Services

Anthem Tax Services

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 at all. Others offer a full refund for the first 14 or even 30 days. Anthem Tax Services, however, 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.

One important note here: Anthem Tax Services’ money-back guarantee doesn’t constitute a promise to reduce your total tax liability to the IRS. It’s entirely possible the company will only be able to reduce your current monthly payment, meaning you’ll still have the same amount of debt; it will just be paid back in smaller amounts over a longer period of time. This may reduce the immediate financial burden but won’t save you any money in the long term. A longer repayment schedule will result in a larger overall payment to IRS because of interest charges over a longer time period. 

Anthem Tax Services 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 (NATP) and the National Association of Enrolled Agents (NAEA).

We noticed a handful of customer reviews for Anthem Tax Services complaining about a lack of regular communication and updates. While reviews are still overall positive, with the company earning four out of five stars on most review sites, this is something to keep in mind. 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.

Best for Large Tax Debt : Fortress Tax Relief


Fortress Tax Relief

Fortress Tax Relief

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

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 to an exorbitant amount that doesn’t reflect 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.

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 amounts of 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.

Best for Small Tax Debt : CommunityTax


CommunityTax

CommunityTax

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

Generally speaking, 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, CommunityTax may accept cases as low as $7,500, among the lowest of all competitors. The company will take on cases if it believes the cost of the services are worth it to the prospective client. It also offers many resources and services that are particularly valuable 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.

In fact, CommunityTax is an IRS Approved Continuing Education Provider, which means it is authorized to provide continuing education programs to tax professionals. Due to this, we have confidence not only in the information available through the company’s website but also in the knowledgeability of CommunityTax case managers.

In addition to free resources, CommunityTax offers a $39 per month program called the Community Tax Assurance Program (TAP). The program 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 depending on the scenario, some customers pay a flat fee upfront while others might incur ongoing charges. We also noticed a trend in some customer reviews of issues with CommunityTax’s handling of state tax debt.

Best for Businesses : Enterprise Consultants Group


Enterprise Consultants Group

Enterprise Consultants Group

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 their 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.

Best for Spanish Speakers : Tax Defense Network


Tax Defense Network

Tax Defense Network

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.

Best Resources : ALG Tax Solutions


ALG Tax Solutions

ALG Tax Solutions

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 with ALG Tax Solutions after completing this service. In fact, 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 provides assistance for federal IRS taxes. State tax services are available for individuals and businesses. ALG Tax Solutions offers no guarantee on its services.

Compare the Best Tax Relief Companies

Company Name Cost Money-Back Guarantee Accreditation Required Tax Debt Amount  Availability
Precision Tax Relief All-inclusive flat-rate fee 30-day money-back guarantee American Society of Tax Problem Solvers (ASTPS) No requirement (but not justifiable for taxpayers who owe less than $10,000) Operates in all 50 states, works exclusively with federal taxes
Anthem Tax Services Flat-rate fee on a case-by-case basis Money-back guarantee with no time limit National Association of Tax Professionals (NATP) and National Association of Enrolled Agents (NAEA) None listed Operates in all 50 states
Fortress Tax Relief Hourly-based fee structure Offers a monetary customer service guarantee Not accredited Minimum tax debt of over $10,000 Operates in all 50 states
CommunityTax Flat-fee upfront (possible ongoing charges) 14-day money back guarantee IRS-approved continuing education provider Minimum tax debt of $10,000 but will accept lower amounts Operates in all 50 states
Enterprise Consultants Group Free consultation and IRS transcript analysis No guarantee Accredited by NATP None listed State tax services mostly California-specific
Tax Defense Network Fees vary No guarantee 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) Minimum debt of $5,000 Operates in all 50 states
ALG Tax Solutions Fees vary (provides low-cost options) No guarantee American Institute of CPAs (AICPA) None listed Operates in all 50 states

Frequently Asked Questions

What Is a Tax Relief Company?

Tax relief companies, also known as tax settlement firms, are for-profit organizations that offer to negotiate with the IRS to reduce your overall debt or monthly payment. The companies charge a fee in exchange for this service, but customers hope that the fee eventually pays for itself due to the company’s higher chance of success in negotiating better terms.

Taxpayers usually contact tax relief companies when they have received multiple notices from the IRS regarding debt and are now afraid they may face wage garnishment or asset seizure. Generally speaking, it only makes sense to contact a tax relief company if you owe at least $10,000. Anything below this means the company’s fees won’t be worth it in most cases.

Do Those Tax Relief Companies Really Work?

Tax relief companies have a bad reputation that comes from an industry littered with poor business practices and scams. Disreputable tax relief companies may lure customers in with false promises, continue upcharging them with more fees, and eventually leave them in worse debt than they began with.

On the other hand, good tax relief companies will be honest about whether or not you can benefit from their services, won’t make any promises about specific outcomes, and will charge up-front transparent fees. We’ve also found that the most reputable tax relief companies involve customers in the process through education and resources, hoping to set the customer up for long-term success to avoid recurring tax debt in the future.

The bottom line is that it’s important to realize that tax relief companies don’t do anything you couldn’t technically do on your own by working directly with the IRS. The idea is that, as experienced professionals, tax relief companies will pay for themselves by negotiating more effectively and generating a better outcome.

What Does Tax Relief Include?

The tax relief process usually begins with a free consultation, during which a case manager will review your current tax debt and present you with a quote for continued service. Once you’ve accepted, the case manager will begin an in-depth investigation into your taxes and come up with the best plan of action. Finally, they’ll negotiate with the IRS to get the best possible outcome for you.

How Much Does a Tax Relief Company Charge?

Tax relief companies set prices on a case-by-case basis that involves many factors, such as the total amount owed, type of solution required, and services included. Some tax relief companies charge a flat percentage of the amount owed to the IRS, such as 10%. Others charge based on an hourly rate, which can be anywhere from $275 up to $1,000. In any case, you should anticipate paying a few hundred dollars for an in-depth tax review and a bare minimum of $1,000 for tax settlement, which goes up significantly with higher debt amounts.

How We Chose the Tax Relief Companies

For this analysis, we began by evaluating 23 tax relief companies and scoring them based on a number of 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 FTC.

We then took a look 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.

Tax Relief Companies
Article Sources
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  1. Internal Revenue Service. "SOI Tax Stats - Delinquent Collection Activities - 2020 fiscal year."

  2. FTC. "Tax Relief Companies."