Managing a large tax liability can be stressful, especially if you’re already dealing with financial problems. Fortunately, professional help is available for individuals who owe large sums to the IRS.
Tax relief companies have a team of experts who can help you explore different payment options with the IRS and state tax authorities. These options may include installment arrangements or temporarily suspending collections if you are experiencing financial difficulties (a “currently not collectible” status).
Please keep reading to learn more about the top tax relief services, including their accessibility, fees, and customer feedback.
Top 10 Picks for the Best Tax Relief Companies
1. Anthem Tax Services
Anthem Tax Services offers a variety of services, such as assistance with IRS tax debt relief and corporate tax preparation.
They assist with the application process for different IRS tax debt relief programs, including offers in compromise (OIC), innocent spouse relief, and the status of “currently not collectible.”
In addition, it offers assistance with wage garnishments and tax levy releases, which sets it apart from other companies.
Anthem has a strong refund policy in the tax debt relief sector. If they cannot achieve any resolution from the IRS, such as payment reduction or debt forgiveness, they will provide a complete refund.
However, the guarantee does not cover the initial investigation fee. This fee typically starts at $350, depending on the details of the case.
- The money-back guarantee has no time limit.
- Specialized tax relief services tailored for truck drivers
- Several customers have experienced cases being resolved within a week.
- Some customers have mentioned difficulties in receiving timely updates on cases that last longer than a week.
2. Fortress Tax Relief
Many tax relief companies calculate their fees by taking a percentage of the total tax debt owed to the IRS.
This method may lead to excessive charges for cases with significant debts and might not accurately represent the work needed to resolve these cases. For example, dealing with a $20,000 debt may require less effort than a $10,000 debt.
Fortress Tax Relief distinguishes itself from other companies by offering quotes based on estimated time commitments, making the process simple. Attorney hourly rates can vary, but EA rates usually fall between $100 and $200 per hour.
As a result, people with large tax debts can expect to pay much less when dealing with their taxes than the fees charged by tax relief firms that charge a percentage of the debt. However, it is always recommended to get quotes from multiple companies.
Furthermore, Fortress Tax Relief provides a comprehensive customer service guarantee to enhance the overall experience. If you have an ongoing case with them and contact them by phone or email, their customer service is committed to responding within two business days.
If this commitment is not met multiple times, customers will receive a $100 credit to their account for each subsequent occurrence.
- It uses a fee structure that is not based on percentages
- Offers a guarantee for excellent customer service
- Deals with state tax debt in every state across the country
- The minimum tax debt must exceed $10,000.
- Not accredited by industry organizations
- Provides a small range of business services
3. Larson Tax Relief
Larson Tax Relief provides a wide range of services to assist businesses and individuals with their tax needs. The services include addressing payroll and federal tax concerns, resolving conflicts with revenue officers, and resolving worker classification issues. They are highly preferred for corporate tax debt relief.
The company offers various tax debt relief options, including assistance with personal IRS tax debts and corporate tax aid. They can also help delay or prevent bank seizures.
Larson is well-known for its business tax services and has received many positive recommendations on customer review platforms.
The team can handle all aspects of business tax preparation, including payroll taxes and corporate income taxes. They take all the paperwork, so you don’t have to worry. This support can be beneficial for small business owners or those with limited accounting resources.
- The 15-day money-back guarantee is available for new customers.
- Skilled in handling complex business tax matters, such as tax liens or accounts receivable levies
- It offers complimentary consultations.
- There may need to be more than the 15-day guarantee they provide for handling complex tax debt problems that require more time to resolve.
- It does not offer a bilingual service.
- It would help if you had a minimum tax debt of $20,000.
4. Community Tax
At Community Tax, they offer free consultations and affordable investigation charges that range from $295 to $500. Community Tax relief services primarily focus on helping individuals with IRS tax debt. They provide limited assistance for state taxes.
Like other companies in the field, Community Tax handles various applications, such as installment agreements and offers in compromise, but does not provide innocent spouse relief.
Community Tax stands out from other firms by providing bilingual support online and through their representatives.
In addition to tax debt relief services and tax filing, bookkeeping, and business accounting services.
The clients can take advantage of complimentary consultations, many positive reviews, and the quick response to customer concerns back our A+ BBB rating.
- It offers services in multiple languages.
- Low-cost upfront charges
- It offers tax planning services to help minimize the chances of encountering tax problems down the line.
- Fee information is not provided upfront
- Only a few choices are available for individuals seeking relief from state tax debt.
5. Optima Tax Relief
Optima’s application allows users to request a tax extension at no cost. It also provides helpful guidance on dealing with IRS notifications, establishing Optima as a top provider of mobile applications in this field.
Optima Tax Relief offers a variety of IRS and state tax relief solutions, including payment schedules and filings for “currently not collectible” status. The goal is to provide easy-to-understand options to help you resolve your tax issues. The company has a team of tax experts with diverse backgrounds, including enrolled agents, tax attorneys, and certified professional accountants (CPAs).
Optima offers its own app that allows users to quickly get a free evaluation for any IRS collection notice they receive. The app also assists in applying for a tax filing deadline extension.
- It offers complimentary consultations.
- The app provides a complimentary evaluation of collection notices.
- The tax resolution process is designed to provide you with clear and realistic expectations for the outcome of your case.
- It would help if you had a minimum tax debt of $10,000.
- The money-back-guarantee lasts for 15 days, which is shorter than most competitors offer.
6. Tax Defense Network
Tax Defense Network stands out as the top tax relief company offering bilingual services, catering to Spanish and English speakers online and over the phone.
It stands out for its commitment to providing exceptional customer service in both Spanish and English. This dedication is evident through their website and call center.
In addition, the company offers options for tax debts as low as $5,000, making its services more accessible to a wider range of people than its competitors.
Tax Defense Network offers a wide range of IRS and state tax debt relief options, including payment plans, offers in compromise, and innocent spouse relief. They also provide customized solutions for business taxes.
We offer specialized services to assist with the closure of corporate filings in case of a permanent business shutdown.
In addition, the company offers a wide range of educational resources that outshine those of other companies. These resources include various tools like offer-in-compromise calculators and tax-withholding calculators.
- Provides a variety of services for tax debt relief and preparation
- Offers comprehensive tax education materials
- It offers services in both languages.
- The money-back guarantee has a short duration of only three days.
7. Precision Tax
Finding reliable companies that provide tax relief can be difficult, but Precision Tax Relief impressed us in every aspect of our evaluation.
The company offers a 30-day money-back guarantee, one of the longest in the industry.
Additionally, pricing is determined through a fixed-rate fee, which is discussed during a complimentary consultation. If any changes in the scope of work were not discussed during your consultation, your fee may be adjusted accordingly.
They also provide flexible payment options, giving you the choice between a lump sum or a zero-interest payment plan.
At Precision Tax, clients are not required to have a specific minimum debt amount. However, after speaking with their customer service department, it became clear that their primary service fee may not be worth it for individuals with debts under $10,000 and no other factors to consider.
In addition, they exclusively handle cases where the potential debt relief is greater than the service fees for clients.
- It comes with a 30-day refund policy
- Uses a comprehensive fixed-fee
- Customer service can be reached via phone, text, email, and live chat.
- Founded in 1967
- Does not address individual state tax debt.
- It does not offer tax audit representation services.
- Provides a small selection of online materials
8. Liberty Tax
Although tax debt relief services may not be Liberty Tax’s primary focus, they offer various preparation tools to help avoid future liabilities.
As more people turn to digital platforms and file their tax returns, they may encounter challenges.
Liberty Tax is a top choice among tax relief companies because of its standout features. It offers complimentary tax return evaluations, online and in-person filing assistance, and other helpful offerings to help individuals avoid debt.
Liberty Tax relies on Community Tax, a reputable provider, for its tax debt relief services, as it primarily focuses on preparation services.
As you may remember, Community Tax offers various programs to help with federal and state tax debts. These programs include assistance with wage garnishment, tax liens, payroll taxes, extensions, and more.
- Quick loading times
- Extensive information on various aspects of self-employment
- Efficient evaluation procedure
- Great accessibility on mobile devices
- Poor user experience
- Concise and simple assistance
- Lack of helpful information tailored to specific needs
- Unusual problems with navigation.
9. Tax Hardship Center
Tax Hardship Center has been included in this compilation list due to the positive feedback received from their clients on the Better Business Bureau (BBB). They offer help with tax liens, penalties, overdue taxes, payroll taxes, wage garnishments, and other related issues.
The organization also provides various tax preparation choices. Tax Hardship Center can handle the submission of past and present tax payments for payroll, individuals, and businesses.
It offers a 14-day refund guarantee at the Tax Hardship Center. If you are unhappy with their services within the first two weeks, you can get a full refund of all fees paid. Nevertheless, the guaranteed time is shorter compared to many competitors. In addition, there is no minimum limit on the tax debt owed.
- Complimentary consultation services.
- Provides tax preparation services.
- Minimum debt amount is $10,000.
- Comes with a 14-day money-back guarantee.
TaxSlayer was founded in Augusta, Georgia, in 1965 as Rhodes-Murphy & Co. The company started by providing traditional tax preparation services but later shifted its focus to developing personalized tax software for professionals in the industry.
Currently, TaxSlayer offers user-friendly tax software that allows individuals to easily file their taxes from the convenience of their own homes.
Accumulating more taxes, fines, and interest can create a situation where a tax debt builds up. It can become complex and distressing for many when dealing with the IRS. Here’s how TaxSlayer can assist you.
Despite the difficulties in numerous instances, TaxSlayer remains committed to offering help during these challenging times.
- Uses a simple method for tax relief
- Provides affordable rates
- There is no obligation to meet a minimum debt requirement
- No refund policy
- Mastering the software may require a bit of time and effort.
- Reviews online are a mix of positive and negative ratings.
Our Ranking Methodology for the Best Tax Relief Services
We carefully and meticulously undertook the responsibility of choosing the top tax relief services companies. We have developed a comprehensive set of standards to evaluate tax relief firms, ensuring their credibility and reliability. These standards cover various essential aspects.
Here is a summary of the benchmarks we used to identify the best tax relief companies:
1. Reputation and Credibility
The company’s reputation and credibility within the industry were essential factors to consider when making the selection. We analyzed how long the company has been in business and looked for evidence of a successful history. The company’s standing was evaluated based on reviews, testimonials, and ratings from reputable sources.
2. Licensing and Accreditation
We prioritized companies with the necessary licenses and accreditation from regulatory bodies. A trustworthy tax relief company should have the required licenses to operate in the tax resolution industry, ensuring it follows industry standards and regulations.
3. Expertise and Qualifications
The qualifications and expertise of a company’s staff, including tax attorneys, enrolled agents, and certified public accountants, are crucial. We carefully examined the educational backgrounds, certifications, and experience of the companies’ professionals to ensure they had the necessary skills to handle complicated tax issues.
4. Range of Services
We conducted an assessment that specifically looked at the range of services offered by each tax relief company. An ideal company should provide a wide range of services, including tax negotiation, IRS audit representation, penalty abatement, tax lien and levy assistance, and in-compromise services. Our wide range of services demonstrates our expertise in handling various tax-related issues.
5. Customized Solutions
We preferred companies that provided customized solutions to meet each client’s specific requirements. We believe in personalized solutions, so we looked for companies that take the time to understand each client’s unique situation and create a tailored strategy.
6. Transparent Pricing
Clear and simple pricing was a key factor to consider. We looked for companies that provided transparent pricing structures, with no hidden fees or surprises. It gives clients confidence that they are getting a fair deal.
7. Customer Service and Communication
Another important factor that stood out was the outstanding level of customer service. We evaluated how quickly and easily we could reach the company’s representatives. Timely communication and a dedication to keeping clients updated throughout the process were greatly appreciated.
8. Success Rate
The company’s ability to effectively resolve client tax issues was another important factor. With a high success rate, we have consistently achieved favorable outcomes for our clients.
9. Ethical Practices
Maintaining high ethical standards was absolutely essential. We made sure that the tax relief companies followed ethical standards when dealing with clients and tax authorities. Any past unethical behavior was seen as a major concern.
10. Client Satisfaction
Lastly, we analyzed client feedback and testimonials to assess overall satisfaction. Reviews and testimonials from previous clients can offer valuable insights into a company’s ability to deliver on its promises.
Best Tax Relief Services – Buyer’s Guide
What is Tax Relief?
Different strategies and methods are available to help individuals with their tax debt, making it easier to pay off or reduce their tax obligations.
At first, the term was linked to policies aimed at reducing taxes for businesses and individuals. However, it now includes installment plans, settlements (known as offers-in-compromise), and salary garnishments.
Although state and federal tax collectors offer similar plans, local regulations vary greatly. It’s essential to look into the options available through your state’s controller’s office.
In addition, anyone can easily discuss these options directly with the IRS. However, there are times when hiring professionals can be a worthwhile investment.
Tax relief firms, or tax resolution organizations, use their expertise in federal and state laws to analyze your records and financial situation. They then identify the best solutions that fit your specific circumstances.
The process usually requires you to submit documents and communicate with the IRS on your behalf. Certain firms hire tax attorneys who can act as intermediaries in negotiations with the government for complex cases.
How Do Tax Relief Companies Work?
Tax relief firms work together with the IRS to reduce the amount of taxes that taxpayers owe. However, it’s crucial to understand that most services provided by tax relief companies can be easily handled by directly communicating with the IRS.
There is a clear difference between reputable tax relief firms and others. Reputed firms have experienced professionals who are skilled in tax legislation. It allows them to handle complex cases with large debts effectively.
For instance, if you have unpaid taxes from the previous year, it might be more advantageous for you to communicate directly with the IRS. These firms may offer little assistance you can handle alone.
Suppose you have a complex tax debt situation with multiple bank accounts, assets, and years of overdue taxes. In that case, a tax relief company can help by organizing your documentation and finding your best options.
In rare cases, they might discover overlooked aspects and negotiate a lower tax liability for you.
If your debts are under $10,000, directly negotiating with the IRS may be more beneficial. Typically, tax relief firms require a minimum debt threshold, often set at $10,000 or more.
Additionally, if your debt drops below that limit, working out a payment plan with the IRS might be more advantageous rather than incurring more costs with tax relief services.
Every person’s situation is different. If you need help with your taxes, even if it’s a small amount, some tax relief companies offer free consultations to get you started.
Common Tax Problems
Tax issues can arise from a variety of problems, but they typically result from errors in filing or failing to file tax returns. These are a few tax problems that tax relief firms can assist you with:
1. Back Taxes
Unpaid taxes may result from failure to submit tax documents or mistakes during filing. If you don’t address these unpaid amounts, they can start accumulating interest and substantially increase your tax liability.
It is essential to stay informed about the interest rates for fines, which the IRS regularly updates. Make sure to visit the agency’s website for the latest information.
Using tax preparation tools can be a helpful way to avoid accumulating back taxes. If you need help with your tax filings, check out our article on excellent tax software for valuable guidance.
2. Wage Garnishments
When it’s time to pay your taxes, the IRS will send you collection notifications.
If you ignore these notifications for a long time, the IRS may choose to collect part of your debt by deducting it directly from your earnings through wage garnishment.
Obtain Publication 1494 from the IRS to help calculate the portion of your income protected from garnishment. It will consider your marital status and number of dependents.
Usually, wage garnishment continues until the debt is fully paid off. However, some companies specialize in tax relief and may be able to assist by setting up different payment arrangements.
3. Tax Liens
It is a notice from the IRS to financial institutions and related parties, informing them that the IRS has the right to collect funds from the proceeds of the sales of personal property before other creditors.
4. Tax Levies
A tax levy is a more severe version of a tax lien, indicating the IRS’s power to seize your assets to resolve your unpaid debt.
5. Tax Audits
If the IRS finds any discrepancies in your tax filings, they might choose to perform an audit. While audits can apply to anyone, it is more common for affluent individuals, especially those with earnings over $10 million, to be audited.
How Much Do Tax Relief Companies Charge?
Given the complexity of tax relief services, it’s clear that costs can vary greatly depending on the specific circumstances.
Usually, two main pricing structures are used: one that is a percentage of the outstanding debt and another based on fixed hourly charges. The most cost-effective choice will depend on the size of your tax liability and the level of complexity in your situation.
Several companies use a percentage-based approach and charge fees ranging from 10% to 15% of your tax arrears. For example, if you have a debt of $10,000 (which is usually the minimum amount required by many companies to use their services), you can expect to pay around $1,000 to $1,500.
On the other hand, a company that charges a flat hourly fee could be a more affordable option if you have a large amount to pay, but your case is relatively simple. The hourly rates tax relief companies charge can vary significantly, ranging from $240 to $1000. Some businesses may have different pricing structures for their services.
For instance, they could charge $300 for an essential inquiry. Still, the cost could increase to over $1,000 if you plan to pursue a specific tax relief option, such as an offer in compromise (OIC), which allows you to settle your tax debt for less than the original amount.
It’s important to stress the need to gather as much information as possible from a company before agreeing to use its services.
It’s best to get quotes detailing any extra fees and payment options.
Tax Debt Relief Options
The IRS provides various options for tax debt relief that individuals can access directly. Similar programs may also be available through local tax agencies.
Before reaching out to tax relief companies, it is recommended to visit the IRS website or speak with a representative over the phone for more information about these options.
It’s worth mentioning that when it comes to private companies’ tax resolution services, they typically assess your case and recommend the best option based on the information provided.
Remember that they lack access to exclusive data and cannot provide guaranteed outcomes you couldn’t achieve independently.
If your tax situation is simple and doesn’t involve complicated income sources or investments, it’s usually best to contact the IRS directly. Several options are available through the IRS to help individuals resolve their tax debt.
1. Offers in Compromise
Offers in compromise provide a way to settle your tax debt for less than the full amount owed. In this agreement, the IRS considers various factors related to you, such as your financial situation, income, expenses, and assets, to determine your eligibility.
The IRS only considers offers in compromise if they believe the reduced amount is the most they can collect in a reasonable amount of time. It makes it one of the least commonly offered options for tax settlement.
2. Innocent Spouse Relief
This type of tax debt relief applies when your current or former partner has made a mistake while filing their taxes.
By applying for innocent spouse relief, you can avoid tax penalties resulting from these filing errors. If the IRS determines that you cannot know about the omissions, this option may be possible.
3. Installment Agreement
The IRS may offer an installment plan if you cannot pay your tax debt immediately due to financial constraints. It allows you to pay off your debt over time gradually.
There are two installment agreements: short-term, 180 days or less, and long-term, which involve monthly payments until the debt is fully paid off.
You need to owe no set amount to apply for an installment agreement. You can use online for amounts up to $50,000 for long-term agreements or $100,000 for short-term agreements. It makes installment agreements a popular and easy option for people who want to deal directly with the IRS.
4. Penalty Abatement
This tax relief option, often called the “first-time penalty abatement,” is readily available for minor tax penalties. It applies to situations such as missing a payment for a single tax return or failing to meet a filing deadline.
To be eligible for this type of relief, it is essential that you have not incurred any penalties in the past three tax years. You must have either submitted your current taxes or requested an extension.
5. Currently Not Collectible
Currently, being in a state of not collectible (CNC) means that you and the IRS have acknowledged outstanding taxes, but you cannot pay them now.
Applying for CNC status is usually relevant when fulfilling your tax responsibilities would significantly burden your ability to cover your basic living expenses.
These situations can arise when it becomes difficult to afford essential expenses such as utilities, rent, mortgage payments, or even basic groceries due to your tax liability.
Once the IRS grants you CNC status, they will evaluate your financial situation yearly until they determine if you can repay the debt.
In addition, any future tax refunds can be used to lower your debt while under CNC status.
Other Services Offered by Tax Relief Companies
Authorized tax experts can provide reliable support if your tax filings are audited. Think of it like car insurance.
For audit defense, you can pay an additional fee to a tax expert upfront. In return, they will assist you with any potential tax audits that may arise in the next few years, usually up to three years.
Alternatives to Using Tax Debt Relief Companies
1. Direct Negotiation With the IRS
You can directly communicate with the IRS if your tax obligation is relatively modest, usually under $10,000.
If you find completing your tax filings simple, consider exploring the IRS’s programs for reducing tax debt. These programs could be a more affordable option than hiring a company specializing in tax debt relief services.
2. Tax Relief Lawyers
If you find your tax debt circumstances complex, consulting with tax relief attorneys may be beneficial.
It’s worth mentioning that some tax debt relief firms work with tax debt relief attorneys, while others do not.
A tax attorney has a unique set of skills that sets them apart from CPAs or enrolled agents. It can be extremely valuable if your case involves potential criminal implications.
3. Tax Debt Relief Programs
The Fresh Start Initiative, previously called the IRS Fresh Start Program, is a collection of principles designed to make tax debt relief more accessible.
This initiative simplifies the eligibility criteria for various IRS relief programs instead of offering a specific form of relief. There have been recent changes to the income calculations used to determine eligibility for offers-in-compromise.
For example, the IRS has changed its policy regarding offers. They now only consider one year of future income for offers paid within five months instead of four years. Similarly, for offers paid within six to 24 months, they now consider two years of future income instead of five years.
All offers must be paid in full within 24 months of being accepted. Tax debt relief firms will review your case details and match them with the Fresh Start guidelines to find relief options for which you may be eligible.
In addition, the IRS offers various tax assistance programs to help individuals file their taxes on time and address related issues. Here are some examples:
4. IRS Free File
- Volunteer Income Tax Assistance (VITA)
- Tax Counseling for the Elderly (TCE)
- Armed Forces Tax Council (AFTC)
- Interactive Tax Assistant (ITA)
- “Where’s my refund?” tool
- IRS2GO app
- IRS telephone assistance
Warning About Tax Relief Scams
Tackling tax debt can be incredibly stressful, making any chance to eliminate it seem enticing. However, it’s important to note that not all tax relief firms will prioritize your well-being, according to the Federal Trade Commission (FTC).
Tax Debt Relief Companies’ Red Flags
Avoiding any company that makes false promises or guarantees to reduce your debt is crucial. Only the IRS has the authority to determine your eligibility for relief programs.
If a company assures you that you qualify for specific programs without assessing your case or guarantees to resolve your tax debt within a particular timeframe, it’s essential to be cautious and consider potential red flags.
It’s crucial to be cautious of dishonest companies that may trick customers by failing to submit necessary paperwork for relief programs, instead misleading them and keeping their money.
FTC reports have revealed that certain companies continue to charge customers’ credit cards without authorization, even after resolving their cases. When evaluating tax relief companies, being aware of potential warning signs is important. Here are a few to watch out for:
- Company representatives make guarantees or promises without reviewing the details of your case.
- The company needs to ask for specific information about your tax debt situation.
- The company requires payment upfront for what they claim are “guaranteed” results.
- Contact can be made through cold calling, unsolicited mail, or email.
- The company employs strategies to prolong the process, such as repeatedly asking for the same documents.
Other IRS-Related Scams
It’s essential to be aware of fraudulent tax schemes and other deceptive tactics related to the IRS. The agency recently issued a warning about text message deceits.
You can rely on a reputable tax relief firm to avoid these misleading practices.
Trustworthy tax relief organizations avoid making specific promises and prioritize clear communication about fees and processes. In addition, they often offer free consultations.
When choosing a company to handle your taxes, it’s essential to prioritize selecting one that professional tax associations accredit. These associations include the National Association of Tax Professionals (NATP), the National Association of Enrolled Agents (NAEA), and the Association of International Certified Professional Accountants (AICPA). By doing so, you can minimize your susceptibility to scams.
How to Avoid Tax Relief Scams
Unfortunately, there are many instances of fraud in the field of tax relief. Many schemes demand a large upfront payment, provide only essential services, and worsen your financial responsibilities.
Here’s a simple guide to avoiding deceptive practices and recognizing warning signs.
1. Requesting Full Payment Upfront
Avoid tax relief firms that ask for payment of all fees before a consultation. Their main priority is to get money from you.
2. Not Offering a Money-Back Guarantee
When a company doesn’t offer a money-back guarantee, it can cause concern and may indicate potential fraudulent activity. Most tax relief companies offer this feature to build trust with their clients about the quality of their services.
3. Claiming Unrealistic Services
If a company is making exaggerated claims, it should be considered fraudulent. These options include commitments to eliminate your entire tax debt or absolve you of all tax obligations.
Tax relief firms have certain limitations and may only be able to help reduce your tax burden, but they cannot eliminate all of your tax liabilities.
Best Tax Relief Fund Services – FAQs
1. Are Tax Relief Companies Worth It?
The fees charged by reputable tax relief firms are reasonable because they employ certified experts skilled at negotiating with the IRS to help you qualify for relief programs you may have yet to be aware of.
These top-notch companies protect you from aggressive IRS actions by offering legal assistance and helping you avoid future debt through valuable tax preparation support. If tax relief is not achieved, we have a refund policy to ensure your peace of mind.
2. How Much Will the IRS Usually Settle For?
The IRS will assess your circumstances and provide you with a payment amount that is manageable for you. Sometimes, you may still need to pay back the entire debt, but this might happen later or in smaller installments.
In certain situations, the IRS can reduce your debt if you qualify for programs like spouse relief or offers in compromise.
3. Does Tax Debt Relief Hurt Your Credit?
Receiving assistance for your tax debt won’t adversely affect your credit score. The IRS does not disclose payment arrangement information to credit bureaus.
On the other hand, failing to make payments can negatively affect your credit rating, as the IRS will report it. Your credit score will remain stable or improve by adhering to the agreement and making timely payments.
4. How Much Does a Tax Relief Company Cost?
Most trustworthy tax relief companies typically offer a free consultation and an initial inquiry fee ranging from $295 to $500 to evaluate your obligations.
The following expenses will depend on your situation’s complexity and the level of legal assistance required. The procedure costs usually range from $1,700 to $6,000.
5. How Do I Get My IRS Debt Forgiven?
If you owe $10,000 or more in taxes and can prove that you can’t pay it back in a reasonable amount of time, you might qualify for the IRS Tax Forgiveness program or an offer in compromise. Meeting the requirements may result in a decrease in your total tax liability as determined by the IRS.
Bottom Line – Best Tax Relief Companies
If you’re dealing with tax debt and need help, hiring a tax relief firm could be your best solution. These companies can evaluate different options for repayment, assist you in applying for IRS tax resolutions and relief programs, and work towards reducing your debt. Many taxpayers find it worth paying these firms’ service charges because they provide peace of mind and relieve stress. Schedule a free consultation with one of the tax relief firms listed today. Get firsthand experience of the expert guidance and support these establishments offer.