Dealing with IRS debt or unfiled taxes can be stressful, but tax relief services can help negotiate settlements, reduce penalties, and stop aggressive collection actions. This guide covers:
✅ What tax relief services do (and don’t do)
✅ Top-rated tax relief companies in 2024
✅ Red flags to avoid scams
✅ DIY alternatives vs. hiring a professional
✅ Costs & how to choose the best service
What Are Tax Relief Services?
Tax relief companies help individuals and businesses resolve tax debts by:
✔ Negotiating IRS payment plans (installment agreements)
✔ Reducing debt through Offers in Compromise (OIC)
✔ Stopping wage garnishments, liens, and bank levies
✔ Removing penalties & interest in some cases
⚠️ Not all tax problems qualify for relief—some companies make false promises.
Best Tax Relief Services in 2024
| Company | Best For | Pros | Cons |
|---|---|---|---|
| Anthem Tax Services | High debt ($10K+) | Free consultation, money-back guarantee | Higher fees |
| Tax Defense Network | IRS audits & wage garnishment | Strong success rate | Slow response times |
| Community Tax | Fast resolution | In-house CPAs & attorneys | Aggressive sales tactics |
| Optima Tax Relief | Long-term payment plans | Flat-rate pricing | Limited availability |
| Liberty Tax | Small business tax issues | Nationwide offices | Mixed customer reviews |
How Tax Relief Companies Work
- Free Consultation – They review your tax debt and eligibility.
- Case Investigation – Obtain IRS transcripts and assess options.
- Resolution Strategy – Propose an installment plan, penalty abatement, or Offer in Compromise.
- IRS Negotiation – Handle all communication with the IRS.
Types of Tax Relief Solutions
1. Installment Agreements (Payment Plans)
- Monthly payments to the IRS over 6-72 months.
- Best for: Those who can’t pay in full but have steady income.
2. Offer in Compromise (OIC)
- Settle tax debt for less than owed (if you prove financial hardship).
- Only ~40% of applications are approved.
3. Penalty Abatement
- Request first-time penalty relief or reasonable cause waivers.
4. Currently Not Collectible (CNC) Status
- Temporarily pause IRS collections if you can’t afford payments.
5. Innocent Spouse Relief
- Remove liability if your spouse underreported taxes.
Costs of Tax Relief Services
- Initial Fee: 295–295–1,500 (varies by company)
- Monthly Fees: 150–150–500 (if on a payment plan)
- Success Fee: 15-25% of savings (if they reduce your debt)
💡 Tip: Avoid companies that demand full payment upfront before any work is done.
Red Flags of Tax Relief Scams
❌ “We can settle your taxes for pennies on the dollar!” (Most people don’t qualify.)
❌ High-pressure sales tactics (“Sign today or lose this deal!”)
❌ No enrolled agents, CPAs, or tax attorneys on staff
❌ No money-back guarantee
DIY Tax Relief vs. Hiring a Professional
| Option | Pros | Cons |
|---|---|---|
| Hiring a Tax Relief Company | Saves time, expert negotiation | Expensive, risk of scams |
| DIY (Filing IRS Forms Yourself) | Free or low-cost | Complex paperwork, no legal protection |
| Low-Income Taxpayer Clinics (LITCs) | Free legal help | Limited availability |
How to Choose the Best Tax Relief Service
- Check credentials (look for enrolled agents, CPAs, or tax attorneys).
- Read BBB & Trustpilot reviews (avoid companies with multiple complaints).
- Compare fees (avoid companies charging >$5K upfront).
- Ask for a free consultation (legit companies offer this).
Next Steps: Should You Hire a Tax Relief Service?
✔ If you owe >$10K and can’t pay, a tax pro may help.
✔ If the IRS is garnishing wages or seizing assets, act fast.
✔ If you can afford payments, consider an IRS payment plan (no need for a company).
🚨 Need help finding a trusted tax relief provider? Tell me your tax debt amount & state, and I’ll recommend the best options!