Our Premium Selection of Top Tax Relief Companies

As we all know and understand – there are two things that people cannot evade in their lives – taxes and death. Now, mankind might not still have a solution to deal with the latter one, but when it comes to IRS tax relief, there is plenty that you can do or better yet – let others do for you. Facing a mountain of debt owed to the IRS that you can’t pay is not something that you have to do alone. The reality is, there are so many people who feel like they’re swimming in a sea of debt. For these individuals, the idea of tax debt relief is a lifeline to a better lifestyle. However, before you grab that lifeline, it’s always a good idea to do more in-depth research and ask yourself why turning to tax relief companies is the right choice for you. In fact, you can start right here on Consumer Opinion Guide as we are here to help you make the right decision in choosing the best tax relief companies in the US, based on reviews.

We will be covering what tax relief programs actually are, which tax debt relief companies are best suited to help you with it, various types of tax relief services out there, and much more. Keep reading to learn more about expert tax solutions to make the smartest decision you can!

What is IRS tax relief?

IRS tax relief refers to any government program or policy initiative that reduces the amount of taxes that an individual or a business has to pay. What’s more, it may even result in you claiming back a refund of taxes already paid, thereby providing you with a lump sum to move forward with. Besides reducing the liability of an individual or a business, tax relief may also assist those in need. For instance, victims of natural disasters may be offered special tax relief. However, tax relief advocates won’t release you from the obligation of paying taxes. It will, however, make your debt more manageable, hence the “relief” part.

Here are a few examples of tax relief programs in “action”:

• Offer in Compromise (OIC);
• Penalty Abatement;
• Installment Agreement (IA);
• Currently Non-Collectible (CNC);
• Tax Audit Appeals;
• Innocent Spouse Relief;
• IRS Fresh Start Program;
• Child Tax Credit;
• Deducting expenses from a home mortgage interest;
• A direct offset of certain expenditures;
• Tax credit for energy-efficient vehicles.

As you can see, the most common way of getting IRS tax help is through deductions, exclusions, or credits. Occasionally, it comes in the form of tax lien forgiveness, as well. However, tax relief policies are constantly changing as the U.S. government makes amendments and annexes to its federal tax code on a regular basis. This does not mean that your tax debt is going to mystically go away, but it does mean that you need to keep yourself in the “loop” and explore expert tax solutions.

Both individuals and companies can be eligible for tax relief, depending on their circumstances. For example, hurricane victims can apply for property tax relief due to extensive damage to private and corporate property alike. This may even include losses that are not usually covered by private insurance.

• Overall, the goal of tax help companies is to reduce the tax liability of businesses and individuals alike in situations where such help is warranted. It can also be utilized to bolster a cause or help a particular group of struggling people.

Recommended Tax Relief Companies

While there are many tax debt relief companies in the country, there are a few that stand out from the “pack”. According to the research of Consumer Opinion Guide, the companies that enjoy the highest rate of customer satisfaction due to their effectiveness are:

• Anthem Tax Services
• Community Tax
• Tax Defense Network

But you will do well to do your research on “tax relief companies near me”. Oftentimes, you can get sound advice from smaller tax debt relief companies and enroll in tax relief programs that are specific to your area of residence. While these companies are your “go-to” when it comes to matters of tax relief, you will do well to exhaust any options you might have. Whether you are looking for IRS tax relief help or need to file a claim, you always have a plethora of options in front of you. These companies will provide you with great assistance but that does not mean you can afford to discount other avenues of information along the way.

For example, if you are looking for tax relief advocates with the best customer service, you may want to look into Anthem Tax Services. If you simply want to get the best value, get in touch with Community Tax. And if you are self-employed, there’s The Tax Resolvers. But, as mentioned previously, there are numerous other companies that might be worth your time. The best thing you can do is to work with a company that is closely specialized for a specific task (e.g. IRS tax help). But if you want to “play it safe” and simply hire one of the top tax relief companies out there, refer to the above choices.

What are the different types of tax relief solutions?

An individual or business entity usually receives tax relief through credits, deductions, or exclusions, and sometimes even by the forgiveness of a tax lien. There are several types of tax relief and a large number of tax relief services. Here are the most common types:

• Claiming tax deductions. This is, by far, the most common type of tax benefit. If a taxpayer qualifies for a tax deduction, it means the amount of their income that is subject to tax will be lowered. Mortgage interest is the most commonly used federal tax deduction, with unexpected costs due to natural disasters such as wildfires, hurricanes, and tornadoes coming at a close second.
• Claiming tax credits. A tax credit is another form of IRS tax relief – one with more tax savings potential than a tax deduction. Rather than merely lowering the amount of income subject to tax, a tax credit provides a dollar-for-dollar reduction in the individual’s total amount of tax owed. You may have heard about tax credits under a different name, “tax incentive”, due to the fact that it reimburses taxpayers for worthwhile expenditures. The government decides which expenditures are worthwhile, of course. A prime example is the Lifetime Learning Credit program that offers tax resolution services for people who attend postsecondary education programs.
• Tax exclusions. Exclusion tax represents certain types of income that taxpayers don’t have to include in the amount they report as gross income. They are essentially “tax-free”. For example, if you have company-paid health insurance, those expenses will not be included in your individual tax return. Nor do you need to pay an income tax for the cost of the insurance. The company, however, will usually deduct that cost as a business expense and have their tax relief advocates deal with it.
• Tax debt forgiveness. If you’re struggling to pay your bills, don’t throw your hands up in the air just yet. The IRS began a program called Fresh Start that helps struggling taxpayers clear up their tax problems. This program provides individuals with an opportunity to pay reduced tax amounts over time, as well as avoid a tax lien. In some cases, it has allowed some people to get a tax refund of over $10,000! Therefore, Fresh Start should be one of the first programs you may want to check out when searching for expert tax solutions.

How can you know whether you qualify for IRS tax help?

Not everyone is eligible for debt relief services in this form. As a matter of fact, many end up being rejected by the IRS. You can easily get a good idea if you are qualified to claim relief for federal taxes owed. You can do this by completing the offer in compromise (OIC) pre-qualifier assessment with the IRS. Qualifying for the OIC program with the IRS means that you are eligible to claim a reduction in your tax burden. The new total may either be broken up into installments or paid in a lump-sum payment.

Another way you can find out if you qualify is by working with a tax debt relief company. But you may want to exhaust your payment plans and options first. Also, before you start looking into professional tax solution services, you will want to figure out if you can utilize the following:

• IRS Payment Plans
• Offer In Compromise (OIC)
• “Currently Not Collectible” tax status

IRS Payment Plans

While IRS payment plans do not necessarily provide tax relief per se, they do provide you with additional time to pay your tax bills. This option allows you to pay your taxes as installments over a certain period of time. Do note that you will need to pay any accrued fees and/or interests, as well. According to tax relief programs, there are two types of these payment plans, long-term and short-term. Here’s an example:

• For a short-term payment plan, over the course of 120 days, you can have a maximum of $100,000 in combined interest, penalties, and taxes. You can apply for this plan online, by mail, or even by phone. You can set up withdrawals from your checkings or savings account, through money order, or via credit/debit card.

Long-term payment plan

A long-term payment plan has a duration of 120 days or more, a limit of $50,000 in combined dues, and an application cost. Depending on whether you are going through tax relief organizations, this cost may be upwards of $31 for online applications, $107 if you apply in person, by mail, or over the phone. Do note, however, that these costs are applicable only if you are choosing to pay through automatic withdrawals. If you choose to pay by another method, the costs can increase to $149 for online applications, or to $225 if you apply by other methods.

Regardless of the option you choose, there are a few key things to note about the whole process. First, if you are in the “low-income” category and are looking to start a long-term payment plan, setup fees for automatic withdrawals can be waived, most of the time, whereas setup fees for other payment methods can be reimbursed under certain conditions.

You also need to realize that these plans do not help you “get out” of late payment penalties nor out of any interests. These will continue to accrue until your tax balance is zero. If you happen to own more than $25,000, your only option is to pay the debt through automatic withdrawals (for which you are going to need a bank account). Paying via debit or credit card involves an additional, processing, fee, which is usually around $2 to $4 per single payment. Additionally, your card will be charged for about 2% of the payment.

Lastly, if you are wondering whether you fall under the “Low-income” category, you may want to refer to IRS Form 13844. The basic premise of the form is that your gross income is either at or below, 250% of the federal poverty level. You can, of course, involve tax solution companies in the entire process and have them help you with choosing the best option.

Offer In Compromise (OIC)

This particular form of tax debt relief will provide you with a way to pay back less than you owe. However, not all individuals and companies are eligible to get an offer in compromise. In general, it is much harder to come to this agreement with the IRS. According to them, this is only an option if someone absolutely cannot pay their IRS tax debt or if doing so puts them in an insurmountable financial hardship. That being said, less than half of these requests get accepted by the IRS, regardless of whether you or any tax debt relief companies are filing it. IRS tax relief does not come easy, after all.

To figure out whether you are eligible to even apply for this offer, you might want to visit the IRS OIC page. There are some things you might want to know before you do so, however.

First, there’s a non-refundable $205 fee for this application. Of course, if you are under the low-income category, you can get a waiver. Then you are going to need to make an initial, again non-refundable, payment, as well as being current on all your tax returns. If you haven’t filed a tax return for a while, chances are that you will not be able to qualify. This particular form of IRS tax relief can also keep tax liens in place until you fulfill your obligations or until IRS accepts your offer. But once you file your application, all collection activities against you will be suspended. Do note that if you are in an open bankruptcy proceeding, you are automatically disqualified for any tax relief programs of this type.

If your offer gets accepted

If you are eligible for this tax debt relief solution, and your offer gets accepted, here’s what is going to happen:

You will be required to make an initial payment of at least 20% of what you owe if you are paying in five installments or less. If you are offering six or more installments, the initial payment will be equal to your monthly installment. Furthermore, you may want to know that some of the information about your offer can be made public, such as your name, state, ZIP code, offer terms, as well as your city and liability amount.

Additionally, this IRS tax help will not remove any federal tax liens that you may have filed against you until you fulfill your end of the deal. Lastly, if your offer gets rejected, you can appeal within 30 days. Expert tax solutions may help you in this case but you need to make sure that you are working with certified tax relief companies.

“Currently Not Collectible”

The last of IRS payment options is to put your account into a so-called “Currently Not Collectible” status. This means that you will get a delay in collection, with no strings attached. However, you will need to prove that your finances are in a dire situation, and supply exhaustive information on your monthly expenses and income by filling out a Collection Information Statement.

This measure, however, is only temporary and the IRS will review your income annually. If the situation changes, you can expect that this plan will change, as well. Furthermore, your account being in this status does not make any of your tax debt go away. It only delays your payment until you are solvent. You can still get a tax lien, as well.

What about tax relief companies?

Whether it’s over the radio, TV, or online, you’ll see tax relief companies all over the place, vying for your attention and offering tax resolution services. The Federal Trade Commission (FTC), however, cautions against fully relying on the promises of all tax relief companies. As they explain it, for an upfront fee, which can reach thousands of dollars, certain tax relief advocates claim they will be more successful in negotiating with the IRS than if you were to do it on their own and reduce (or even eliminate) your tax debts. In reality, as FTC explains, most taxpayers don’t even qualify for the programs that is being sold to them. In many cases, they don’t even end up sending the required paperwork to the IRS to request participation in the aforementioned programs. And, adding insult to injury, there are a lot of tax help companies don’t even provide refunds.

If you prefer to have a third-party consultant in your corner, you ought to dig deep to make sure that you’ve hired a reputable and qualified IRS tax relief professional. You will definitely want to do more research than simply typing “tax relief companies near me” in your browser of choice. Do not be swayed by claims of tax refund over $10,000, for example. FTC warns that there’s only a handful that has the authority to represent you with the IRS and offer expert tax solutions. These include:

• Enrolled agents;
• Certified Public Accountants;
• Financial Attorneys.

What you need to do is make sure that you are working with certified and reputable individuals, as well as companies, and not simply go with tax debt relief companies nearby. While the professionals in your vicinity may prove a lot more convenient, tax relief is no joke. You need to ensure that you have top tax relief advocates helping you out.

Finally, it’s best to meet face-to-face with any tax professional you are thinking of hiring. This way, they’ll be able to explain your options regarding tax relief as well as the company’s fee structure and tax solution services, before you pay or sign anything. While this may be a daunting option during these uncertain times with COVID-19, it is still essential to get a “feel” of your tax professionals and what they can do for you. Make sure that you are observing all the social distancing protocols and you should have nothing to worry about.

Before you hire a tax relief company

Most tax relief organizations are going to charge you an initial fee for finding out how much exactly do you owe the IRS as well as to set up a payment plan or find out whether you are eligible for an offer in compromise. If you want to reduce or completely eliminate this fee, you can always get that information on your own, before looking into the best tax relief companies.

First, you will want to find out if you have an outstanding balance with the IRS. You can do that by simply signing up for an irs.gov account, and verifying your identity once. This process will also allow you to get your payment history for up to 24 months. Why pay a fee to one of the tax help companies for something that you can do on your own within 20 minutes?

Next up, you can get your own tax records. The IRS will provide you with several types of free tax transcripts that will allow you to get this information. The information contained in these transcripts will allow you to set up a payment plan much easier, as well as figure out whether you qualify for an offer in compromise.

Basically, the more you do on your own, the less you will need to pay. With this being said, searching for tax relief companies near me can still prove to be quite useful. Most of them will provide you with free advice, potentially making your efforts more focused or more efficient.

FAQs

How much do tax relief companies charge for their services?

If you decide to entrust your tax relief to professional tax debt relief companies, you can expect to pay anywhere between $2,500 to $5,000 on average. However, there are numerous companies that offer services that cost as little as $500. The main issue with these ranges is that most companies do not offer their prices upfront but base the charges upon your specific situation.

Can tax relief companies really help me save a lot of money?

The simple answer to this is: Yes. Depending on your situation, you can get significant tax debt relief by hiring tax relief services. The main benefit of these services is that you will be able to lower (or in some cases eliminate) penalties and interests. However, you will want to make sure that you are hiring trusted tax resolution services from a reputable company. It literally pays off to be thorough in your search.

How do I find reputable tax relief advocates?

The best “weapons” you have at your disposal when it comes to finding tax relief professionals are customer review platforms such as Consumer Opinion Guide. You want to pay attention to both negative and positive comments, as well as check the accreditations of the company in question. Check whether the company employs members of any reputable tax relief organizations such as NATP, ASTPS, or NAEA, before you make your decision. Furthermore, verify that tax solution companies you’re working with employ attorneys, CPAs, as well as enrolled agents that are specializing in tax relief. You want a company that has the means to deal with any tax situation.

But the best option you have is to simply file your taxes on your own, provided you take the time to learn how to do it correctly. This will allow you to remove any additional charges from the “equation”. If you, at any point, require further help, you can always turn to reliable tax debt relief companies.

Can I represent myself?

Most of us are actually representing ourselves before the IRS. It is entirely possible to qualify for tax relief without even hiring any tax resolution services. However, if your situation is complicated, you may want to involve expert tax solutions.

How do I file back taxes?

The first thing you need to do is gather all the necessary documentation. This includes any tax relief documents you might have for the year in question. For example, if you are filing your 2020 tax return, you will need all the documents that are pertinent to that year, W-2 and 1099s included. If you don’t happen to have access to them, however, you can get a tax transcript from the IRS. While this will not provide you with the exact photocopies of these documents, you will have access to all the information within. And this will provide you with all that you need to file back taxes in an orderly manner. Make sure to explore the different options that a back tax relief program can offer.

Speaking of orderly, you will need to use the right forms. A common mistake is using 2020 forms for filing a tax return from 2019. Tax forms, rules, and regulations change every year, and using incorrect forms is a sure way to create extra work for yourself.

Why do I need to file them?

The main benefit of filing back taxes is that you are avoiding IRS doing it for you. When they do it, all your tax deductions, tax credits, or any other tax benefits may be completely ignored. You may get a significantly higher bill and a rather nasty headache. The reason for this is that the IRS simply takes the information it has on hand, without “digging deeper” and formulates a tax return according to that information. If you take your time to file back taxes on your own, you have the benefit of making sure that all the proper documentation is presented, potentially leading to a lower bill. However, don’t underestimate the need for professional back tax help.

Furthermore, do not mix filing and paying your back taxes. You never want to avoid filing a tax return, regardless of whether you can pay it or not. The penalties for not filing are much harsher than the ones for not paying. And you can always take advantage of payment programs and installment plans.

Also, the government itself might owe you some money on your back taxes. If you happen to have a tax refund in the year prior, you can claim it by filing a tax return for that particular year. Remember, you only have three years from the original tax return to do so. After that, you will be unable to claim it anymore.

How many years can I “delay” filing back taxes?

Technically speaking, you must file all the required tax returns “immediately”. Any year that goes unfiled can have IRS coming after you. However, there is a specific policy, IRS Policy Statement 5-133, that states that it takes managerial approval to enforce any delinquency procedures for any taxes that go back more than six years. That being said, it is unwise to do anything but file your taxes in due time, however, and you should always do so if possible.