Best Tax Relief Companies – 2021 Reviews
Believe it or not, many taxpayers owe the IRS. Nearly 5% of the United States, in fact, currently owes Uncle Sam some kind of funds.
Due to the coronavirus pandemic, this number is likely to only increase. Debt on your tax returns can lead to a tax lien, wage garnishment, asset seizure, and even more tax issues.
Tax attorneys will help you come to a tax resolution – but they also cost money. That’s why many folks turn to a free consultation online – or even go to a tax relief company.
We’ve reviewed the best tax relief companies – so you don’t have to. While we believe you should always utilize tax professionals (like certified public accountants) for all of your tax preparation – financial hardship can make this impossible.
No matter what your current financial situation is, you do not want a federal tax lien, if you can help it. Any kind of tax liability is not good, so monthly payments to the IRS are one option you can use.
Many of the best tax relief companies actually specialize in something called an ‘offer in compromise’. No matter what your amount of tax owed, you can usually get either an installment agreement, or an offer in compromise.
So without further ado, let’s review the best tax relief companies.
What Is A Tax Relief Company?
Put simply – a tax relief company specializes in helping consumers get issues with the IRS cleared up. For many, this is a fresh start.
Even if you have to file a ‘currently not collectible’ status, tax relief companies will make sure you come to some kind of agreement with the IRS. Ideally the IRS will want the full amount owed, but tax relief companies may sometimes be able to less the total amount you have to pay.
However, to be upfront, most of the time you will have to pay the IRS the full amount that you owe – even if enrolled agents are negotiating on your behalf. An installment plan, automatically withdrawn from your bank account, is usually a common outcome.
Another common outcome from a tax relief company, are deals called “offers in compromise (OIC)”. This allows you to pay less than is technically owed, and is what most tax relief companies base their marketing on.
What Should I Look For In A Tax Relief Company?
For one thing, look at a business’s accreditations. The best companies for tax relief will be accredited, usually with the Better Business Bureau (BBB).
Secondly, look for a money-back guarantee – and read the find print to verify it. Tax payments (and issues like a potential tax levy) are serious matters, and should not be taken lightly.
The best tax relief companies will work on your behalf to find tax solutions – lowering your tax bill (if possible) – which is a very valuable service. But make no mistake – the IRS almost always gets the full amount of unpaid taxes back from the taxpayer.
If this is your first time running into an issue with the IRS however, you may be able to get what is called a ‘penalty abatement’. This can eliminate some penalties, which lowers your overall tax liability.
If you have solid bookkeeping, your tax issue(s) may be as small as a misfiled form, or a missed deadline. However, you definitely want to look for a company that will thoroughly investigate whatever the issue is, and also be adept at negotiating with the IRS.
Pricing is also important, and some tax relief companies offer a flat fee. This lets you know that everyone gets the same price, which helps to build trust.
The IRS also offers with a flat-rate structure, and they are the tax experts, after all. Many companies that offer tax preparation services will also offer tax relief programs, so it’s important to look into exactly what services you need, and which company may be the best fit for you personally.
The Best Tax Relief Companies To Choose From
Anthem Tax Services – Better Business Bureau (BBB) accredited. Many positive reviews, strong reputation. Good for larger debts.
Community Tax – Staff enrolled agents licensed by the treasury department, good for large debts. Many strong reviews, solid reputation.
Optima Tax Relief – Well known brand, very popular. Good (big) provider, though the person working your case may be different from the person managing it.
Precision Tax Relief – Accredited by the Better Business Bureau (BBB), very good reviews. Strong customer service, and many years of experience dealing with the IRS.
Fortress Tax Relief – Strong track record, glowing customer reviews. Only for large amounts owed ($15,000+).
Tax Debt – How To Settle It
Often settling tax debt is best done via an offer in compromise – or an installment plan. While it is true that you can technically negotiate with the IRS yourself – we wouldn’t recommend it.
Tax relief companies are professionals – and all they do is negotiate with the IRS, day after day. Needless to say – they are going to be better at it than you will be, and you should put your trust in them to get the best deal possible.
Just like tax lawyers are used for filing taxes – tax relief companies are designed to help you settle tax debt. You can also use tax relief companies to settle back taxes.
Back taxes can be settled – but usually there are penalties. Tax relief companies do their best to remove any penalties (if possible), however.
These penalties are not that different than the issues that come with late payments on a credit card bill. There is a % charged, and the longer you don’t pay – the more it increases.
Can I Use A Payment Plan?
Yes, you can often use a payment plan. This is one of the most popular options, in settling debts with the Internal Revenue Service (IRS).
What About An Offer In Compromise?
An OIC (or ‘offer in compromise’) is simply settling your taxes for less than what is owed. Usually an OIC is worked out by a tax relief company – as it is their most common outcome when dealing with the IRS on your behalf.
How The IRS Settles Tax Debt
The IRS settles tax debt, usually, by reaching an agreement with you. They understand that extenuating circumstances do occasionally happen, and as long as you work with them honestly, they are willing to help.
This could be in the form of a payment plan. Or it could be an offer in compromise – you won’t truly know until you begin the process of negotiating.
What Is Community Tax?
Community Tax is one company that offers tax relief. They work directly with the IRS to help settle your debt with the government.
Best Tax Relief Companies – Other Factors To Consider
Always look for a company that is well regarded by the Federal Trade Commission (FTC), as well as the Better Business Bureau (BBB). These organizations are objective and impartial, and will always give you the real scoop on the best tax relief companies.
The Bottom Line On The Best Tax Relief Companies
Whether you have unfiled taxes, back taxes, or other tax issues – tax relief companies are designed to help you. Make sure any company you choose is accredited with a national association (like the Better Business Bureau).
We have only listed the best tax relief companies in this article, so any choice you go with will already be thoroughly vetted and verified as high-quality.
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