ElitePersonalFinance found the best tax relief services of December 2025

If IRS debt, penalties, or back taxes are putting you in a bind, one of the best places to start is tax relief services. Today, we offer top-rated recommendations like Optima Tax Relief, Tax Expert Now, and Supermoney, which provide an excellent customized approach towards tackling everything from debt settlements to negotiating payment plans. Even waived penalties are on the table, offering greater flexibility than dealing with the IRS on your own.

All of these services are led by (or referred to) experienced professional tax attorneys, CPAs, and licensed agents, ready to provide all the guidance needed to get you back in the IRS’s good graces.

Keep reading to learn more about the best tax relief companies out there, key features, what they offer, what they cost, why it’s best to avoid a do-it-yourself approach, and how to choose the right tax relief service for your personal financial situation.

Why You Should Trust ElitePersonalFinance?

At ElitePersonalFinance, we’re all about providing transparency when it comes to dealing with complex IRS challenges. Don’t get bogged down by the IRS’ complex processes/guidances and rely on the best tax relief services that can simplify this process into manageable steps.

Whether you can’t pay off a $14,000 outstanding balance, need funds for other unexpected expenses, other similar situations, professional tax relief services may be right for you. All of our top-rated recommendations are fee transparent, knowledgeable on IRS procedures, and have a longstanding track record of success.

Let ElitePersonalFinance show you the way to finding the tax relief you need to get your finances moving in the right direction.

Optima Tax Relief

With over $1B worth of back taxes resolved up to date, Optima Tax Relief has an excellent team of qualified tax attorneys and enrolled agents ready to assist taxpayers with their IRS issues. Every taxpayer goes through two steps: investigation and resolution phases. For eligibility for IRS programs, the Investigation phase determines the course of action, such as negotiating payment plans or reducing penalties.

If the investigation phase yields no result, then there’s a money-back guarantee.

Keep in mind that Optima Tax Relief charges upwards of thousands of dollars (even more than $10,000 for more complex cases) with no guarantee of success. However, this is not unusual for the tax relief industry, given that every case is unique.

What We Like:

• Over $1B in back taxes resolved
• A+ BBB Accredited Business
• Member of the National Association of Tax Professionals
• Money back guaranteed during the investigation phase
• Expert team of CPAs and enrolled agents

What We Don’t Like:

• Fees can climb upwards of $10,000 for complex cases
• No guarantee of success
• Not available in all states
• Interests/penalties continue to accrue until the debt is paid
• IRS responsiveness may vary based on the resolution time

Eligibility & Next Steps:

• US resident
• Completed online form (free evaluation)

SuperMoney

SuperMoney’s Tax Relief Quotes is one of our favorite tools for comparing multiple service providers without having to visit each website. Everything about hundreds of tax relief firms is compiled in one place, including ratings and customer reviews, making it an excellent choice for those who want to compare services.

One of the best things about SuperMoney is its helpful service provider comparison feature. Everything is laid out, from fees to minimum debt requirements for each tax relief provider. Plus, its customer reviews are very insightful, providing first-hand feedback on everything from speed to professionalism. Not to mention, separate sections break out providers by their areas of expertise. Some may focus more on Offer in Compromise (OIC), whereas others work more on installment agreements or penalty abatements.

SuperMoney is an excellent choice for anyone who wants to shop around before signing on with a tax relief firm. Please note that it’s not a tax relief firm, but rather an aggregator that enables you to compare and narrow down your options.

What We Like:

• Side-by-side comparison tool
• Ability to connect with multiple tax relief firms
• Verified customer reviews and ratings
• No need to visit various websites

What We Don’t Like:

• Not an actual tax firm
• DIY filing options like TurboTax or H&R Block are not listed
• Not all full pricing or eligibility requirements are shared up front
• No live tax advice or direct negotiation services
• Each provider must be contacted individually

Eligibility & Next Steps:

• Completed the online form to match with providers

E-file.com

Promising to file in minutes, at up to 50% less expensive than popular tax software like TurboTax, H&R Block, and Tax Act, E-file is an online tax filing service that works well for anyone handling back taxes, IRS issues, and more. However, it’s more suitable for do-it-yourself taxpayers who can utilize guided software tools and educational resources to file for both Federal and State taxes without the assistance of traditional tax relief companies.

One of the best things about e-filing is that it’s free for taxpayers meeting specific eligibility criteria, such as single filers and married couples filing jointly with a household income of less than $100,000.

In short, avoid e-file.com if you have a highly complex situation that requires professional expertise in dealing directly with the IRS.

What We Like:

• Ability to file tax and state returns
• Cheaper than TurboTax, H&R Block, and TaxAct
• User-friendly online filing interface
• Extensive resources, e.g., ‘Where’s My IRS Refund’ and ‘Different 1040 Types’

What We Don’t Like:

• Little direct representation with the IRS
• Not the best option for complex or large tax debts
• Limited customer support options
• Free filing eligibility is subject to income/filing status

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number or ITIN
• US residency
• Filing package through the E-file.com portal
• Upsells can bump costs depending on tax situations

Tax Expert Now

Allowing users to speak with a tax expert online, Tax Expert Now will enable people to conduct unlimited one-on-one chats with individual tax experts. They can assist with your tax return, answer questions about back taxes, and provide support without the need for in-person appointments.

Plus, Tax Expert Now is very fast. However, keep in mind that this tax relief firm focuses more on general advice, not necessarily on more complex cases requiring ongoing debt settlement or waived penalty negotiation they manage themselves. Additionally, if you need multiple or ongoing consultations, the cost to me increases rapidly.

All in all, look to TaxExpertNow for on-demand help across a variety of tax issues.

What We Like:

• One-on-one consultations
• Hundreds of verified, “top-rated” tax experts
• Replies in as little as five minutes
• Assist with a variety of tax issues, including back taxes and IRS notices
• Shared membership options are available

What We Don’t Like:

• No direct representation available
• Not a dedicated tax relief company for complex cases
• Costs rise with multiple or ongoing consultations
• Advice quality may vary depending on the team assigned
• Not the most robust case management

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number or ITIN
• US residency
• Access TaxExpertNow’s chat interface for immediate guidance

What Are Tax Relief Services?

Also known as tax resolution services, tax relief services help individuals and businesses navigate the complex world of the IRS. Specifically, one-on-one counsel from qualified experts can work with you to address everything from unpaid back taxes to wage garnishments.

Tax relief services are typically staffed by CPAs, tax attorneys, and enrolled agents who negotiate terms tailored to your unique IRS situation. For example, if you owe $21,000 in back taxes, the IRS can work with you to arrange an installment agreement or enroll you in the IRS’s Offer in Compromise (OIC) program, a program that allows you to settle for less than what you owe. With these services, it wouldn’t be surprising to negotiate a $21,000 back tax down to $12,000, making repayment more manageable.

In addition to negotiating settlements, tax relief services also help you with past tax returns and stop the IRS from aggressive collection activities such as liens and wage garnishments. They deal directly with the IRS, as well as work with you to identify any deductions or credits for which you may be eligible for. There’s ongoing tax planning advice to help avoid future IRS issues.

In our guide, we’ll go over tax relief services and debt, including how to identify legit ones, typical fees, pros and cons of using a tax relief company, how to choose the best tax relief service, and much more.

Are Tax Relief Services Legitimate?

All of our recommended tax relief services are legit and reputable. They have a team of licensed professionals comprising tax attorneys, CPAs, and others who can represent clients and negotiate directly with the IRS on one’s behalf, with the exception of e-file.com and SuperMoney. They know the negotiation process in and out, which allows them to address everything from wage garnishments to restructuring repayment terms.

For example, Optima Tax Relief is one of the most prestigious tax relief services in the country. In addition to being recognized as Inc. 5000’s #1 Financial Services Company, it holds A+ BBB accreditation, helping consumers resolve over a billion dollars in tax debt to date. Like many legit firms, they also have hundreds of tax attorneys, CPAs, and licensed professionals on staff to provide case-by-case recommendations.

As with any industry, tax relief services often come with scams. Many also employ excessive marketing language, such as guaranteeing to cut your tax bill in half or similar claims. Remember, every IRS situation is unique, and not all resolutions are created equal. Alternative platforms like SuperMoney (albeit not an actual tax relief firm) can help you find legit tax relief services with helpful side-by-side comparisons, including first-hand feedback on a rating scale, so that taxpayers can avoid being scammed.

On the other hand, recognize that E-file.com is more of a self-service tax filing solution, available free of charge to eligible taxpayers at a more economical cost than TurboTax or H&R Block. If you’re looking at facing aggressive IRS action or handling back taxes without direct IRS representation, refer to Optima Tax Relief instead.

In short, legitimate services like Optima, Tax Expert Now, and SuperMoney-backed tax relief services can help you find a trusted professional to manage your IRS case quickly and reliably.

Is It Worth Hiring a Tax Relief Company?

If you’re facing major IRS problems, such as a levy on your paycheck, liens, or owe tens of thousands of dollars in back taxes, then hiring a tax relief company makes all the sense in the world.

Legit tax relief companies will work on your behalf to negotiate an IRS Offer in Compromise, settling for less than what you owe, penalty abatements, and more, best reserved for more complex cases, especially six-figure tax steps or multi-year unfiled returns that have generated aggressive IRS activity. In this case, considering Optima Tax Relief and Tax Expert Now may be worthwhile.

However, if you owe a small amount (e.g., under $1,000), then efile.com is a better option.

What Are Typical Fees for Tax Relief Services?

The amount you can expect to pay in fees for tax relief services depends on the complexity of your IRS cases. Expect a nominal filing fee when using a do-it-yourself platform, such as e-file.com, versus larger fees for full-service firms like Optima Tax Relief, which is justified given the amount of licensed professionals, such as CPAs and tax attorneys, working on your case.

For starters, expect to pay a flat fee of anywhere from $295 to $500 for the investigation phase, where a licensed professional will review your IRS transcript and filing history to determine the best course of action. From here, legit tax relief firms work diligently to identify solutions, including a possible Offer in Compromise (OIC), penalty abatement, or installment agreement, to settle back taxes.

Plus, they may even offer a money-back guarantee in the event they cannot assist with your case.

After the resolution phase, the resolution phase typically commands anywhere from $2,000 to $5,000 (even up to $10,000), depending on the complexity of your case. For example, if you have a six-figure debt or multi-year unfiled returns, then you can expect to pay this amount. The higher the time investment and amount of negotiation required, the higher the fees.

Remember the IRS often takes months to return phone calls or send out letters, so it’s not unusual for cases to drag on (for even more than a year).

Pros and Cons of Using a Tax Relief Company

Here are the pros and cons of using a tax relief company:

Pros:

Expert Representation

With tax relief services, you can expect any combination of CPAs, attorneys, or enrolled agents with a thorough understanding of tax codes and IRS procedures in your case. On top of that, they’re also able to negotiate directly with the IRS on your behalf so that you do not have to take on aggressive IRS phone calls or letters. Consider them your first line of defense and handling all communication while protecting your rights as a taxpayer.

Additionally, tax relief services educate taxpayers on how to complete forms accurately. For example, if you incorrectly complete an IRS Form 433-A (used for financial disclosure), you run the risk of outright denial. By allowing a licensed tax professional to work at your pace, forms can be submitted accurately and on time.

Access to IRS Programs

The average taxpayer may not be aware of the types of debt relief programs available, such as the Offer in Compromise program, which can help you lower the cost of your debt.

Additionally, penalty abatement can help with late filings or delayed payments, allowing you to save thousands and avoid fines. A legit tax relief company will assess your eligibility across multiple programs and file the necessary paperwork. Without the expertise of a tax relief firm, many taxpayers can overpay their bill or neglect to reduce their tax liability.

Avoid Liens and Levies

Unpaid taxes, bank levies, tax liens, and paycheck garnishments are all too familiar. It’s not surprising for the IRS to take away 25% of your earned wages. A legit tax relief firm has attorneys or other qualified personnel on staff that can file a collection hold, giving you extra time to pay.

By preventing the IRS from escalating further, your income and assets can be protected, especially when you’re under tremendous pressure to pay.

Installment Plans

Tax relief service professionals often help with manageable installment plans, in addition to reducing penalties and interest. For example, if you owe $35,000, then you can negotiate an installment plan (paid out monthly or at specified intervals) so that you’re not crushed by debt.

Remember, the IRS offers short-term, long-term, and partial payment installment agreements, providing greater payment flexibility. Based on your budget, tax professionals at legit tax relief services can help you find the one that is a better fit for your budget. Remember, it’s all about keeping your household expenses in check.

Future Tax Planning

One crucial focus area with legit tax relief firms is that they don’t just address retiring your current debt.

Instead, they prepare you to correct mistakes and set up your taxes correctly in the future, so you don’t fall into the same problem. Not only can they help you rectify past filing mistakes, but they also offer additional services, such as establishing bookkeeping best practices and recommending any necessary payroll withholding changes to ensure you or your company meets IRS compliance.

By offering proactive guidance, tax relief firms can help you get back on track in your business.

Strong Negotiation Skills

Experienced tax relief companies bring IRS-specific negotiation skills to the table. Whether it’s a CPA, tax attorney, or enrolled agent, they know which local IRS offices are more likely to produce a favorable outcome for a lower monthly payment, stop collection activity, and more.

That’s why we’re big fans of larger, reputable firms with proven track records, such as Optima Tax Relief.

Cons:

High Fees

Expect to pay anywhere from $2,000 to $7,500 for resolution services, depending on how complex your cases are. This upfront cost could be a burden to lower-income taxpayers, which may force you into unnecessary loans. However, it may be worthwhile if your debt is in the tens of thousands of dollars.

If you have small balances owed, like $3,000 in back taxes with a $5,000 tax relief service charge, then it is not worth it. Always compare the size of your tax debt versus the type of services received.

No Guarantees

Tax relief services like Optima Tax Relief are not magicians. Even with the best attorneys, CPAs, or enrolled agents, the IRS ultimately has discretion on whether to modify your installment agreement or accept a penalty waiver. Do not expect to receive an automatic debt reduction.

Remember, the IRS’s Offer in Compromise program has strict eligibility requirements. If your income or expenses are out of line, your case may not be approved. Always have realistic expectations before signing on the dotted line.

Scams Everywhere

Unfortunately, the tax relief industry has plenty of scam artists out there known for collecting fees and disappearing.

Anytime you see promises of getting your IRS debt cut to pennies on the dollar, you should proceed with caution. That’s why ElitePersonalFinance always encourages its readers to vet companies by reviewing third-party review sites, such as the Better Business Bureau and TrustPilot. Plus, you also ensure a healthy ratio of positive to negative customer reviews. Do not forget to check for professional memberships, such as the National Association of Tax Professionals.

Remember, a legit company will always be upfront about its pricing and processes with realistic expectations of what you can expect.

May Wait a Long Time

The IRS is known for its bureaucracy. Even the simplest of IRS issues can take months to be reviewed. If you have multiple years of previously filed tax returns, you can expect to wait upwards of a year or longer before the IRS reviews your case and responds.

Privacy & Data Security Risks

To resolve tax problems, taxpayers have to provide sensitive data such as Social Security numbers, bank statements, and electronic timesheets. Although legit tax relief firms follow secure document protocols, any unauthorized data breach or unsecured file transfer can throw you off stray. Hence, we encourage you to ask any firm how they encrypt data and keep it safe.

If a tax relief organization cannot explain the security safeguards it has in place, then run. Only deal with tax relief companies that use secure portals with two-factor authentication and clearly outline privacy policies.

All in all, there are several pros and cons to using a tax relief service. Make sure you assess each of these carefully before committing to any of our recommended tax relief services.

How to Choose the Best Tax Relief Service?

Here’s a step-by-step guide on how to choose the best tax relief service:

Verify Credentials

The first step in selecting a tax relief service is to verify if it is legit.

Specifically, it should be staffed by a team of certified public accountants, enrolled agents, tax attorneys who can negotiate on your behalf before the IRS. Each of these groups has had rigorous education, specifically in knowing the IRS code and procedures in and out.

You also want to make sure that your tax relief firm has memberships in organizations like the National Association of Tax Professionals (NATP), along with accreditation with the Better Business Bureau (BBB). Check to see that they have a BBB rating of at least A, which means they have a solid track record of addressing client complaints with complete transparency over their operations.

Without verifying these credentials, you have a higher likelihood of running into a scam that can only worsen your tax issues.

Not to mention, check out your tax relief firm’s history. For example, firms like Optima Tax Relief, which has resolved over $1 billion in back taxes for its customers, speak to their high level of expertise. Do not forget to check third-party review sites, such as Trustpilot, SuperMoney, or BBB customer reviews, which offer a first-hand look into what customers think about the business.

Are They Transparent?

It’s all about transparency when it comes to tax relief firms. Typically, they charge you for the investigation phase (running from $295 to $500) and the resolution phase (usually $2,000 to $5,000, up to $10,000 in many cases).

For example, Optima Tax Relief offers a money-back guarantee if the investigation phase yields no result, which is excellent for not unnecessarily spending thousands of dollars on a case that the professional staff thinks they cannot win.

Always be mindful of any tax relief firms that want upfront payment or use marketing language in their letters that says “settle your debt for pennies on the dollar”. Every case is unique, and tax relief firms are in control of IRS decisions. Always be sure everything is put in writing and clarify whether fees are flat rate or hourly before committing.

Understand Their Services Fully

Keep in mind that not all tax relief firms are specialized in the same thing. Each has their own specialty, such as negotiating an Offer in Compromise (OIC), installment agreements, penalty abatements, or even representing you during audits. Please note that not all cases follow a one-size-fits-all approach.

For example, if you filed late for the last several years, look for a tax relief firm that specializes in filing abatement requests. On the other hand, if you owe an outstanding $32,000 with an annual salary of $30,000, then you should look into firms that negotiate OICs with the IRS.

Compare Options

ElitePersonalFinance makes it easy for you to compare two to three different services. For example, it’s best to do it yourself (efile.com) or seek help with a complex tax case for tax relief.

Aggregators like SuperMoney are also doing an excellent job of providing side-by-side comparisons of legit tax relief providers, allowing you to see fees, company ratings, customer feedback, and much more. It never hurts to do a quick pros and cons of each service to decide which one offers the right fit for you.

At this point, you also want to make sure that the tax relief company is licensed to operate in your state. It doesn’t make sense to start any investigative phase only to find out later that the tax relief firm cannot work there.

Get a Free Consultation

Before signing on with a tax relief firm, look to see if you can get a free case evaluation. This is an excellent starting point for asking all the questions you need and covering any strategies, including eligibility for IRS programs and the likelihood of success.

At this point, you also want to ask your tax relief company if it has handled similar cases. Another thing to consider is whether they will actually negotiate and handle all IRS communication on your behalf. Always be mindful of any companies that have aggressive sales pitches or promise to settle your debt for pennies on the dollar. This is a greater likelihood of a scam.

All in all, verifying credentials, checking for transparency, understanding the services, comparing options, and requesting a free consultation are all excellent starting points in choosing a tax relief service.

What Is the Difference Between Tax Relief and Tax Preparation?

Tax relief and tax preparation are two totally different things. Tax preparation implies services like H&R Block and TurboTax, which offer interfaces for filing your annual tax returns by the deadline. They provide step-by-step guidance with one-on-one support via live chat to make sure that all of you can claim deductions and credits successfully while minimizing calculation errors.

In turn, tax relief services are offered one-on-one to help taxpayers who need help paying off back taxes, negotiating payment arrangements, avoiding wage garnishments, and more. Firms like Optima Tax Relief specialize in this area. Alternatively, consider a comparison platform like those reviewed on SuperMoney, which aggregates information with a helpful side-by-side comparison tool, enabling you to compare tax relief services.

What are the Different Tax Relief Options Available?

The IRS offers several tax relief options, each with different eligibility requirements.

Offers in Compromise

OIC is one of the more popular options for delinquent taxpayers, allowing them to settle debts for less than the full amount owed. To be eligible for the program, you must meet specific income, expense, and asset thresholds. For example, if you owe $65,000, due to improved economic hardship, then you can reduce it to around $20,000, which costs more than half of your outstanding tax debt.

However, there are strict eligibility requirements, and do-it-yourselfers are not likely to be approved without professional help. They can assist with all aspects of the process, such as completing IRS Form 656 and 433-A correctly and providing supporting documentation to explain your situation. Your forms must be entirely accurate. Fortunately, experienced CPAs or tax attorneys are available to assist in this area, with a higher chance of approval.

One of the best things about Optima Tax Relief and Tax Expert Now is that they specialize in OIC applications.

Installment Agreements

Another option that tax relief companies may allow you to consider is installment agreements, which, like credit cards, you pay off over time through reasonable monthly payments, ranging from $120 a day to long-term plans, depending on the amount you owe and your ability to repay it.

For example, if you owe $35,000, it wouldn’t be surprising if you could secure a 72-month payment plan, which brings your monthly payments down to a manageable level.

If you do it yourself, you’re not likely to negotiate the lowest possible monthly payment. Remember that the higher your monthly payments, the higher your risk of default, which can result in additional penalties, interest, and collection activity by the IRS. It allows a tax relief service like Optima Tax Relief to negotiate on your behalf for the best possible outcome.

Penalty Abatements

Another way taxpayers can reduce their tax liability is through penalty abatements. Penalty abatements allow taxpayers to reduce extra charges resulting from late filings, incorrect income reporting, and other non-compliance with the IRS. For example, if you owe $20,000 in taxes, but have roughly $4,000 in penalties, then a successful abatement can waive the penalties altogether and bring you back down to only needing to owe $20,000.

There are many ways tax relief companies can negotiate penalty relief. For example, if you recently had a serious illness or a bad tax attorney offering erroneous advice, then you could be eligible.

To facilitate penalty abatements, tax relief services are expertly filed on your behalf and provide reasonable explanations with supporting documentation, plus, they have familiarity with which arguments are most likely to result in a ‘yes’. Not to mention they’re also on top of deadlines, so that you hit the right filing window.

If you have years of accumulated penalties and if they cannot be addressed today, then penalty abatement with a tax relief firm makes all the sense in the world.

Currently Not Collectible (CNC)

If your financial situation is in dire straits, then your tax relief service can negotiate a Currently Not Collectible status adjustment on your behalf. This lets the IRS know that you’re unable to make payments, which suspends any collection activity, allowing you extra time to get back on your feet.

However, to be eligible for CNC, you need to provide detailed income and expense documentation. Tax relief services know the ins and outs of creating a strong case and positioning your monthly budget. Sometimes, the statute of limitations on your debt may even expire, allowing the IRS to write off the debt eventually.

If you’re unemployed or in an extreme financial situation, then the CNC approach may be an option.

Audit Representation

Sometimes the IRS comes down heavily-handedly, especially when catching red flags on your return, such as perceived unreported income or other irregularities.

In this case, tax relief firms provide audit defense services, which prepare you for supplying the IRS with all necessary documentation. Ever had the IRS come down on you for odd deductions or business expenses? If so, having a tax relief service provide audit representation can help you avoid headaches altogether.

Plus, you don’t have to deal directly with the IRS and its extensive bureaucracy, making it a win-win situation.

All in all, offers in compromise, penalty abatements, CNC, and audit representation are only five services that legit tax relief services provide to turn your tax situation around.

What Are Some Lesser-Known Tax Relief Options?

Tax relief firms are not all about offers in compromise, penalty abatements, CNC, and audit representation.

Here are some lesser-known tax relief strategies you may want to consider, which are more specific:

Innocent Spouse Relief

Innocent spouse relief works for people where the husband or wife is involved with lots of taxes that they did without them knowing. For example, if they’ve done things like reporting income or claiming excessive real estate values, then you may qualify for this type of tax relief.

To initiate the process, you or your tax professional will be required to complete IRS Form 8857, which includes supporting documentation that proves you were not involved. We recommend using a tax relief firm for this, especially for larger balances, as the process is very meticulous and can result in outright IRS rejection if not filed correctly or if sufficient evidence is not provided.

Statute of Limitations Strategies

Arguing for the statute of limitations can stop collections 10 years from the assessment date. If properly documented, the IRS may not be able to collect overdue taxes once the statute is reached.

Tax relief firms are exceptionally knowledgeable about deadlines and submitting all the necessary documentation to ensure that no collections take place until your eligibility expires.

What IRS Assistance Programs are Available for Tax Relief Seekers?

Not to be confused with tax relief options such as installment agreements, IRS assistance programs are available for taxpayers.

Here are several noteworthy ones:

IRS Free File

Often underutilized, IRS Free File allows anyone who earns under $79,000 to file their taxes for free using IRS-approved software providers. It’s an excellent alternative to TurboTax and H&R Block, which can cost upwards of $150 for a simple file.

One of the best features of IRS Free File is that it allows you to adjust older returns or correct past mistakes that may have prompted the IRS to contact you. This makes it a good option for anyone who isn’t undergoing collections and wants to bring their taxes up to date.

Volunteer Income Tax Assistance (VITA)

If you are a low- or moderate-income individual, then the VITA program may be worth exploring. In many places, such as libraries and nonprofit centers, IRS-certified volunteers work with individuals earning up to $64,000 to provide free professional tax help. Compared to CPAs and tax attorneys, this is an excellent deal.

The program is beneficial when navigating complex forms or addressing language barriers. Please note that VITA operates differently from a tax relief firm and does not negotiate directly with the IRS. However, volunteers will ensure that your taxes are accurate and up to date to avoid IRS penalties or audits.

Tax Counseling for the Elderly (TCE)

Precisely as the name implies, Tax Counseling for the Elderly (TCE) is a free IRS-funded program that works with anyone age 60 or older. This program concentrates more on retirement tax questions, such as how to manage your Social Security income and pensions, all areas that can be rife with errors if the forms are not input correctly.

Like VITA, TCE uses IRS-certified volunteers who can help you navigate digital filing software or answer retirement-related questions. Don’t expect it to be a large-scale back tax issue. Consider it more as a way seniors can remain compliant and avoid tax audits with a focus on a trouble-free retirement.

IRS Fresh Start Initiative

The IRS Fresh Start Initiative is a federal mandate that loosened restrictions when it comes to installment agreements, tax lien thresholds, and Offer in Compromise eligibility. For example, the IRS would file a federal tax lien if you owed just $5,000 before the program started, which raises the threshold to $10,000 so that fewer taxpayers now have to worry about liens.

It also mandated that installment agreements can run up to 72 months for taxpayers only up to $50,000 without having to provide extensive supporting documentation, along with expanded OIC eligibility with a focus on realistic living expenses with reduced look-back. When assessing a taxpayer’s ability to repay debt, it makes it easier to qualify.

Low Income Taxpayer Clinics (LITCs)

Low-income taxpayer clinics, such as the Legal Aid Society of New York, Community Tax Law Project, and California Taxpayer Rights Advocates (Los Angeles, CA), are specialized organizations that can help taxpayers meeting income thresholds deal directly with the IRS, guiding them through everything from audits to withholding collections. Additionally, some can even offer tax attorneys who can represent you at no cost or with a nominal fee.

Like the above firms, these organizations specialize in understanding taxpayer rights to ensure that your dispute is successful. Keep in mind that these are nonprofit organizations that work on a pro bono basis to assist taxpayers without collecting fees, unlike tax relief services like Optima TRax Relief.

Taxpayer Advocate Service (TAS)

The Taxpayer Advocate Service (TAS) is the IRS’s own program that helps taxpayers who have suffered severe economic hardship. They can deal directly with you regarding your IRS case, but they are not intended to reduce the amount of tax you owe.

In short, IRS assistance programs such as Free File, VITA, TCE, and Fresh Start provide affordable alternatives for taxpayers who cannot afford tax relief services. If you want to avoid IRS problems and file forms correctly, these assistance programs are an excellent place to get started. However, it’s essential to try to avoid them if you’re facing liens or owe $10,000 in back taxes.

Alternatives to Tax Relief Services

Here are some excellent alternatives to tax relief services:

Installment Plans

If you have a small tax debt under $1,000, the best thing to do is to do it yourself. The IRS offers tools like online payment agreements and direct debit options, allowing you to seek installment agreements without needing to consult a tax relief company. For example, if you owe $12,850, you can set up a monthly payment schedule through the IRS website, which allows you to prevent interest from accruing.

However, if you have larger balances or more complex situations, then consult professionals to make more sense.

Online Tax Filing Services

Today, do-it-yourself platforms like E-file.com, TurboTax, H&R Block, and TaxAct have guided millions of people through the process of filing their federal and state returns without needing to consult a tax relief company. They have online interfaces that can guide you through the process of correcting past returns or consulting one-on-one live help.

For example, if you need to adjust your 2023 return to correct a mistake, then you can use TurboTax to provide an amended form without having to consult anyone. Please note that these services do not assist you in negotiating with the IRS for debt reduction or settlement.

Someone who needs to adjust last year’s return due to a slight miscalculation can use TurboTax or E-file.com to submit an amendment without paying a professional thousands of dollars. These platforms include built-in guidance, calculators, and FAQs that make filing easier, though they do not negotiate with the IRS to settle for less than the amount you owe.

IRS Assistance Programs

Today, IRS Free File, Volunteer Income Tax Assistance (VITA), and Tax Counseling for the Elderly (TCE) provide IRS help free of charge.

However, like online tax filing services, do not expect direct negotiation with the IRS.

In short, it may not always be advisable to use a tax relief company. Online filing platforms like TurboTax or E-file.com can help you avoid IRS penalties if you can walk through the platform yourself.

Credit Counseling Agencies

Oftentimes, taxpayers with IRS debt have other financial struggles belonging to different lines of credit, such as high-interest credit cards and medical debt. In this case, using credit counseling agencies may make more sense.

Fortunately, there are economic alternatives available. If you’re interested in credit counseling, we highly recommend National Foundation for Credit Counseling (NFCC) or Money Management International (MMI), which offer free or low-cost sessions to review your entire financial outlook and create repayment plans across all types of credit.

Note, they do not deal directly with the IRS, but can help you consolidate balances to a manageable repayment plan so that it could free up funds to deal with IRS payments.

What Are the Benefits of Using a Tax Relief Service?

If you’re staring down the barrel of IRS issues, professional tax relief services and specialized teams of tax professionals, CPAs, and attorneys can help you resolve your IRS issues. Unlike online filing software like H&R Block or TurboTax, these services combine one-on-one help to help you address complex tax situations.

For starters, you can expect expert representation from licensed professionals who are thoroughly familiar with IRS procedures. They handle communications with the IRS and submit all supporting documentation on your behalf, so that you can rest easy. Think of them as how a lawyer would defend you in a court case or trial.

For example, suppose the IRS is threatening to garnish your wages. In that case, a tax relief service professional can negotiate to request a collection hold and work towards an installment payment agreement that will keep you on sound financial footing. That’s why we highly recommend tax relief firms like Optima Tax Relief and Tax Expert Now, which are specially designed to handle these stressful situations.

Alternatively, firms can assist you with Offer in Compromise (OIC), penalty abatements, and installment agreements. Another solution designed to reduce your debt. Definitely agile in ensuring all of your forms are filled out correctly for the best chances of approval. For example, a tax professional may determine that you qualify for an OIC if you owe $40,000 in back taxes for an eventual settlement less than the amount owed.

Without expert guidance in place, you might be lost entirely in overpaying when you don’t have to.

All in all, there are numerous benefits to using a tax relief service depending on your financial situation.

What Are the Best Tax Relief Services?

The best tax relief services are Optima Tax Relief, SuperMoney, e-file.com, TaxExpertNow.com, and e-file.com.

If you had to decide between each of these, choose Optima Tax Relief for full-service IRS representation across all types of serious IRS issues, such as wage levies, tax liens, audits, and back taxes. To vet tax relief companies quickly, look to SuperMoney, which makes it easy to see side-by-side comparisons of legit providers, complete with customer reviews and star ratings.

In turn, if you’re looking for personalized support, TaxExpertNow.com is a good option, connecting you one-on-one with licensed professionals who have a thorough understanding of IRS procedures.

Lastly, suppose you’re looking for affordable compliance. In that case, IRS-approved e-file.com works well, especially useful for individuals who wish to file their own returns and documents using a simple, easy-to-use interface.

How to Work With a Tax Relief Professional?

If you’re facing serious IRS issues, that approach is really professional as a logical first step. Let ElitePersonalFinance walk you through the process in this quick step-by-step guide to maximize your chances of success.

Initial Consultation

Look for a free or low-cost initial consultation from your tax relief service. During this meeting, a CPA, tax attorney, and enrolled agent will look into your entire situation. You may owe $21,000 in back taxes or have a recent $5,000 penalty levied. You may even have a wage garnishment. In this case, you’ll be asked to provide supporting documentation such as past IRS notices and tax returns, as well as details about your current income and liabilities.

This initial consultation means everything because it allows the tax relief service to determine how complex your case is and work towards a solution. It could mean any number of things, such as enrollment in IRS programs like Offer in Compromise (OIC) or penalty abatements. By understanding your tax situation, tax relief companies will be in the best position to succeed.

Case Assessment

After the initial consultation, the tax relief professional will start to work on a customized plan. This plan identifies all of the opportunities available to you, such as installment agreements, OIC, penalty abatements, or even audit representation if there are red flags on your return.

During this phase, expect to discuss how much you can save as well as deadlines and timelines so that you have better knowledge of what to expect. By then, your income, expenses, assets, and extenuating circumstances will be put on the table, allowing tax relief professionals to understand and find out which programs you qualify for to keep monthly payments manageable.

Provide Documentation

After the tax relief service agrees on the right course of action, you’ll be required to fill out and provide IRS forms and supporting documentation. Whether it’s IRS Form 656 for OICs or Form 433-A for financial statements, it’s very important to be accurate and mindful of all pending deadlines.

Tax relief services may also request additional documentation to prove that you are experiencing financial hardship or other qualifying factors, depending on the program involved, to ensure that the IRS has all necessary information in place to increase the likelihood of success.

IRS Negotiations

Once your tax relief service has submitted all documents, the negotiation process with the IRS starts. This could mean any number of things, including negotiating installment agreements, OIC settlements, or auditing your taxes.

For example, if you’re facing a 35% wage garnishment, a tax relief professional can ask that this step be deferred so that you can work towards a manageable monthly repayment plan. If you undertake this process yourself, you run the risk of incurring higher monthly payments and facing aggressive IRS tactics, which tax relief professionals are primarily known for navigating.

Monitoring

After IRS negotiations, the tax relief firm is responsible for monitoring your account to make sure that payments are handled correctly and all agreements are set in stone. Legit firms like Optima Tax Relief will remind you of upcoming deadlines and additional notices you have to address.

Resolution

After the tax relief term has successfully resolved your debt, they will ensure closure with the IRS. Whether it’s removing penalties or ensuring that a payment plan is set in place, you can have greater peace of mind that your tax situation has been resolved.

How to Find Legit Tax Relief Companies and Avoid Scams?

If Owen $11,000 in back taxes, wage garnishments, or aggressive IRS collection tactics are knocking at your door, finding legit tax relief companies may be in store for you.

Unfortunately, the tax relief industry is plagued by scammers looking to part taxpayers from their money. It’s essential to learn how to separate legit ones from non-legit ones to protect your cash and keep IRS issues at bay.

Here’s a step-by-step guide on how to find legit tax relief companies and avoid scams:

Check Credentials

Only legit tax relief companies employ a combination of certified public accountants, enrolled agents, and tax attorneys, who have the authority to represent taxpayers against IRS claims. They should be able to provide names and license numbers verifying credentials.

For example, Optima Tax Relief and Tax Defense Network clearly state licensed attorneys and enrolled agent status. Stamp companies will typically call their leads Tax Specialist or similar verbiage. The rest has a directory, and enrolled agents and tax attorneys can easily be verified through State Bar associations.

Look at the Reputation

Third-party review sites like Better Business Bureau (BBB) rating, Trustpilot, and Google Reviews are excellent places to learn everything from how tax attorneys on staff negotiate settlements to customer service speed. Be mindful of companies with a history of repeated unresolved complaints.

For instance, Optima Tax Relief has earned an A+ rating from the BBB with thousands of reviews from Trustpilot.

Positionally, you want to look to see that your firm is a member of established organizations like the National Association of Tax Professionals (NATP) or the American Society of Tax Problem Solvers (ASTPS), which guarantee that your firm is fully vested in ongoing education and business best practices.

Lastly, ensure that your firm is actually licensed to operate in your state. For example, Colorado and Oregon are two well-known states where many tax relief companies will not operate due to their tax regulatory structure. Always ask up front about service availability before the commitment.

Do not fall for promises like “cutting taxes to pennies on the dollar” result guarantees, even before all of your documentation is put on the table; this is a red flag. Although the IRS’s Offer in Compromise program has easy eligibility criteria, it must be based on income, expenses, and assets.

Remember, no tax relief firm can guarantee results without IRS approval.

Understand the Fee Structure

Tax relief services cost a pretty penny. For example, legitimate tax relief companies can offer anywhere from $2,000 to $7,500, depending on the complexity of your case. With no transparent terms and conditions, it’s essential to obtain everything in writing regarding service fees and money-back guarantees during the investigation phase.
If this tax is higher than your total IRS tax, it may make sense to seek assistance through IRS programs or do it yourself.

In short, finding a legitimate tax relief service is very easy. Always verify credentials, read reviews, and confirm professionals. Free IRS-backed programs like Low Income Taxpayer Clinics (LITCs), the Taxpayer Advocate Service (TAS), or IRS Free File are available if you prefer to do it yourself.

How We Picked These Services

Countless actual firms out there promise help with your back taxes, but do not deliver.

At ElitePersonalFinance, we applied strict eligibility criteria based on the following:

Accreditation and Compliance

If the tax relief firm is not backed by Better Business Bureau (BBB), the National Association of Tax Professionals (NATP), or similar organizations, then we do not care for them.

For example, Optima Tax Relief has an A+ BBB rating, which really speaks to the firm’s ability to comply with IRS standards and negotiate successfully on your behalf.

Transparency and Pricing

It’s always crucial for tax relief firms to specify their fees and services up front. Oftentimes, scam companies will trap you with hidden costs. One of the best ways to verify that you’re not being scammed is by using comparative sites like SuperMoney, which allows you to see a side-by-side comparison of legitimate tax relief services, including everything you need to know, from verified reviews to fee structure.

Experience

All of our top recommended tax relief firms specialize in everything from resolving IRS audits to wage garnishments. We only prioritize companies with a high level of expertise, regardless. For example, TaxExpertNow.com provides one-on-one support for any taxpayer who is facing several IRS issues, specializing in complex IRS cases.

Customer Support

We’re committed to providing dedicated customer support. Preferably using dedicated case managers who keep you informed every step of the process, from intake of documentation to resolution. That’s why we’re big fans of Optima Tax Relief, which is well known for updating clients at every stage. It’s an excellent alternative to scam companies that take your money up front before disappearing.

Never forget to check third-party reviews, such as Trustpilot, to get a first-hand look at user feedback from real-world experiences. Customer support should never take more than 48 hours.

In short, all of our recommended tax relief firms were chosen based on accreditation, compliance, transparency, pricing, experience, and customer support.

Frequently Asked Questions

What exactly are tax relief services?

Tax relief services are staffed with IRS-knowledgeable professionals who assist taxpayers in resolving their IRS or state tax debt. They can help with everything from setting up manageable repayment plans to removing wage garnishments. Reputable firms are usually handled by licensed tax attorneys, CPAs, or enrolled agents who have decades of experience navigating the IRS’s complexities.

How much tax debt do I need to have before hiring a tax relief service?

To qualify for using a tax relief service, we recommend that you only consult them if you have $10,000 or more in IRS debt. Sometimes, the cost of representation can be several thousand dollars, so it doesn’t make sense to engage them for low balances with little to no penalty relief.

However, suppose you have smaller balances and are facing aggressive IRS activity, such as liens, levies, or wage garnishments. In that case, consult with tax relief professionals, especially if you’re unfamiliar with IRS procedures, forms, and negotiation tactics.

How much do tax relief services cost?

It all depends on the complexity of your cases. Expect to pay anywhere from $295 to $500 fee for the investigation phase and, on average, up to $5,000 for the resolution phase. However, if you have a more complex case, then $10,000 is not out of the question. Be mindful of any money-back guarantees and ensure that you understand whether these are flat rate or hourly, with a full disclosure.

Can tax relief companies really reduce my IRS debt?

Yes, tax relief companies are going to really help reduce IRS debt. There are many programs taxpayers are eligible for, such as OIC (paying less than the full amount owed), along with penalty abatements, installment agreements, and even CNC status if you are in severe financial straits.

However, the IRS is really strict with who gets approved. All of our legit recommendations will give you honest feedback on what you can realistically expect before you sign a contract.

How long does the tax relief process take?

How long the tax relief process takes depends on the complexity of the case and the IRS’s own turnaround times. Expect as little as a few months, up to 12 to 24 months, or even longer.

And some agreements take much less time, whereas an Offer in Compromise could easily take more than 12 months, thanks to the IRS’s limited bandwidth and extensive supporting documentation required.

Can I handle IRS debt on my own instead of hiring a service?

Yes, yes, it is possible to handle IRS debt on your own. There are several do-it-yourself programs, such as IRS Direct Pay, IRS Fresh Start Initiative programs, and installment agreement applications, which you do not need tax relief services to assist you with.

However, many taxpayers find the IRS very hard to deal with, especially when it comes to negotiating settlements. Tax professionals at relief firms know how to accurately fill out your forms, strengthen your case, and create the best argument possible.

Will hiring a tax relief company hurt my credit score?

No, hiring a tax relief company will not hurt your credit score, and it operates differently from loans and credit cards. There’s no activity with credit bureaus when signing a contract. However, if you have had ongoing IRS issues, then it could affect your credit indirectly. One example is that any federal tax lien may appear in public records, which could affect your ability to obtain financing for loans in the future.

What should I look for in the best tax relief service?

At ElitePersonalFinance, we’re all about ensuring transparency with tax relief firms. They should only be staffed with knowledgeable professionals, such as CPAs, enrolled agents, or tax attorneys, instead of scam sites that promise tax specialists without rigorous training. Whether it’s IRS-approved e-file.com or a legitimate comparison site like SuperMoney that allows you to review tax relief services specializing in Offer in Compromise (OIC), penalty abatements, and installment agreements, all of our recommendations are the best tax relief services, in our opinion.

Are all tax relief companies legit?

Unfortunately, not all tax relief companies are legitimate. There’s no shortage of scams that do an initial consultation with a so-called tax specialist and run off with your money. That’s why we’re big fans of verifying providers using third-party review sites like Trustpilot, along with checking professional credentials and ties to business organizations.

Is there a money-back guarantee with tax relief services?

Yes, many legitimate service providers offer money-back guarantees after initial investigations do not yield any results. Always be cautious of any company promising a “100% guaranteed IRS settlement.”