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Best Company for Tax Relief: Understanding Real and Fake Tax Relief Programs to Avoid Scams

05 ต.ค. 2024

Another common complaint was how long it took to see results — some individuals said it took up to two years to get a resolution. CNC status, also called a hardship extension, can be used to stop an IRS tax lien, levy, seizure or termination of an installment agreement. For example, innocent spouse relief shields one spouse from the tax, interest and penalties that result from the other spouse’s erroneous tax return. Tax relief companies might charge as little as $250 for penalty abatement or upward of $10,000 for an OIC case. Owing the state or the IRS can be overwhelming, but you don’t have to tackle the nuances of the tax code alone. Five Star Tax Resolution is also notable for employing a variety of tax professionals, from attorneys to CPAs to IRS Enrolled Agents.

Best Tax Relief Companies

(Results may not be typical. Contact one of our top-rated tax resolution firms to see if they can help you with professional tax relief.) If you can pay your tax back taxes in full, the IRS will release the lien within 30 days. A tax lien, or an IRS Notice of Federal Tax Lien is a claim filed by the IRS that gives the agency first rights to money earned from any assets you sell. The IRS Fresh Start program is a series of initiatives introduced in 2012 to help taxpayers facing financial hardship.

Alternatives to tax relief companies

Realistic expectations are essential—while strategies like an Offer in Compromise can indeed eliminate tax debt for some, most taxpayers do not qualify for a large reduction unless they genuinely cannot pay anything. This client protection policy helps reassure clients about the quality and reliability of the tax relief services offered. Some companies provide client protection through a money-back guarantee, offering refunds if their services do not meet expectations within a specified period, such as 15 or 30 days. Most tax relief companies begin with a free initial “consultation.” To be clear, this is most commonly with a salesperson. In some cases, your best tax relief first step is to contact the IRS directly to see if you can resolve your tax debt on your own.

Will the IRS really settle for less?

Dealing with IRS debt is stressful, but settling for less is possible through an Offer in Compromise (OIC), which lets you pay less if full payment creates hardship.

Offers affordable payment plans and free consultations. Pursues fast, legal tax relief solutions for clients around the country. Tax relief company specializing in offers in compromise, penalty abatement and innocent spouse relief.

  • Tax resolution company based in Virginia.
  • The company breaks things down into three steps so that customers always know where they’re at on their tax relief journey.
  • The Taxpayer Advocate Service, an independent organization within the IRS, is another valuable resource for taxpayers facing significant financial hardship or trouble resolving their tax issues through normal channels.

How to choose a tax relief company

The company has been around for nearly 20 years and offers a range of tax relief services backed by a 15-day money-back guarantee. TaxRise accepts clients with a minimum $10,000 tax debt, and offers a 100% resolution guarantee, a 100% compliance guarantee, and a no-cost Offer in Compromise appeal. The IRS cautions that some companies “promise to eliminate tax debt but sometimes leave taxpayers high and dry,” failing to deliver results after charging high upfront fees. It offers services in all 50 states and accepts clients with as little as $10,000 in tax debt. Alleviate Tax Relief Services offers a lowest price guarantee that ensures clients won’t overpay for tax relief. Anthem Tax Services offers one of the strongest money-back guarantees in the industry, promising a refund if it can’t reduce or rework your tax debt..

Popular Tax Relief Programs Explained

It’s important to carefully review any tax notices you receive from the IRS or state authorities, as these official documents require timely and appropriate responses. They try to dupe you into believing that you’re dealing directly with the government instead of a scammer. Tax debt forgiveness is a complex process, and the only way you can qualify is if you prove that you have limited income and assets. You should know the pro who’s working your case and the relief option you’re pursuing. To get legitimate help, you should work with a licensed tax professional who has experience with your specific tax concern. Federal and state tax codes are so complicated that tax problems are abundant.

  • Tax relief services can help you eliminate tax debt, reduce your overall tax liabilities, and stop aggressive collection actions like wage garnishments and tax levies.
  • Tax relief companies might charge as little as $250 for penalty abatement or upward of $10,000 for an OIC case.
  • Provides customized tax solutions for individuals and businesses.
  • A Low Income Taxpayer Clinic (LITC) might be able to help you.
  • Calling the IRS before the payment date often reinstates the plan without penalties—a step many taxpayers overlook.

The Mental Toll of IRS Pressure

What is the downside of using a debt relief company?

Debt settlement companies often charge expensive fees. Debt settlement companies typically encourage you to stop paying your credit card bills. If you stop paying your bills, you will usually incur late fees, penalty interest and other charges, and creditors will likely step up their collection efforts against you.

The IRS Fresh Start Program is an initiative designed to help struggling taxpayers pay off their tax debt more easily. If you fall behind on tax payments and are unable to pay your taxes in full, you may qualify for tax relief. However, using a tax resolution company does not guarantee results or money-saving benefits. When choosing a tax relief company, you need to be cautious of scam companies that overpromise, overcharge and underdeliver results.

14-Day Money Back Guarantee:

Always confirm bar, CPA, or enrolled‑agent numbers on state or federal registries. A slick radio spot means little if the IRS still levies your paycheck. Additionally, our editors do not always review every single company in every industry. Compensation may impact where & how companies appear on the site.

Offers online resources and free consultations. Free no-obligation consultation. Only tax attorneys work on cases. Provides customized tax solutions for individuals and businesses. CPAs and tax attorneys available.

Provides same-day assistance and personalized strategies that cover all tax relief options. Includes 15-day money-back satisfaction guarantee. Tax resolution company available nationwide. Online tax software for federal and state returns. Offers tax prep, tax education and business resolution. Sets up flexible payment plans to make relief affordable.

Apply for a payment plan – also called an installment or online payment agreement – to pay off your balance over time. Provides family-oriented tax services and solutions from enrolled agents. Provides tax services to individuals and small and large businesses. Promises explanations of tax relief options, strategic recommendations, responsive service and case updates. E-file tax software company.

How much can I afford to pay upfront—and overall?

Our latest analysis reviewed 420 data points from 21 companies, with 20 data points collected from each. Scams are common in this industry, and even federal agencies have issued warnings. The companies listed here are thoroughly vetted and reputable. However, the industry also top rated tax resolution firm includes scammy or unethical operators that make exaggerated claims, charge high upfront fees, and disappear once you’ve paid. Consumers already struggling financially may find fees in this range hard to bear. After all, it can’t effectively solve your IRS tax problems without this information.

Choosing a Legitimate Tax Relief Company

Streamlined plans stretch to $50,000 with six years to pay and no detailed financials. A guaranteed plan covers balances under $10,000 and spans three years. If the math shows the IRS would collect more through an offer than enforced action, you likely qualify.

Authentic urgency stems from notice dates, not company quotas. Ambiguity invites hidden fees and weak commitment. Misplaced pay stubs and unsigned Form 433s extend processing time by months and anger examiners who must request duplicates. Never pay most of the fee before transcripts are pulled. Serious illness, natural disaster, or unavoidable mistakes such as incorrect advice from a tax professional often justify relief. Statute expiration can erase the debt if your finances stay tight.

Getting an IRS tax audit letter in the mail… If you have any question related to our services, feel free to contact us right away and we will get back to you as soon as possible. File a new Form 2848, pay the transcript fee, and the IRS will recognize the switch without resetting your place in line. The IRS does not report to credit bureaus, but a recorded tax lien does.