Tax Relief Programs

Tax relief companies typically offer to help taxpayers in distress. Some of them can be helpful if you’re confused about the process or need help filling out forms. Here are out top 3 Tax reliefs companies. 

BEST OVERALL: Precision Tax Relief

Precision Tax Relief comes out a clear winner across all categories, including the company’s generous money-back guarantee, transparent pricing, and convenient communications channels. We found this to be the most trustworthy tax relief company that we evaluated.

Pros

  • Offers a 30-day money-back guarantee
  • All-inclusive flat-rate fee
  • Customer service available by phone, text, email, and live chat
  • In business since 2011

Cons

  • Doesn’t handle standalone state tax debt
  • No tax audit representation
  • Limited online resources

Reputable tax relief companies are hard to come by, but Precision Tax Relief rose to the top in nearly every aspect of our analysis. First and foremost is the company’s 30-day money-back guarantee, one of the longest in the industry. This guarantees a return of your funds if you’re not happy with the service provided during the first month.

The company bases its pricing on a flat-rate fee that is presented during a free consultation. The only way your fee will increase is if the scope of work changes from your initial quote due to new information that was not provided during your consultation. Payment options are flexible with a choice between one lump-sum payment or a zero-interest payment plan. Precision does not require that clients have a minimum debt amount. However, a call with their customer service department revealed that their base service fee may not be worth it for taxpayers who owe less than $10,000 with no other variables. However,  they only take on cases if the possible debt relief makes the service fees worthwhile for clients.

Precision Tax Relief has been in business since 2011 and offers convenient customer service options via phone, text message, email, and live chat. The company is certified by the American Society of Tax Problem Solvers (ASTPS), which is awarded to CPAs with a proven ability to solve a range of problems with the IRS.

The company does have a few limitations. For example, they don’t offer tax audit representation, a service available from many competitors. Precision Tax Relief also won’t handle state tax debt on its own; it works exclusively with federal taxes owed to the IRS.  

BEST GUARANTEE: Anthem Tax Services

Anthem Tax Services’ money-back guarantee is the only one of its kind in the tax relief industry. The guarantee has no time limit and promises to return your fees should the company fail to make any change to your IRS tax debt repayment schedule.

Pros

  • Offers a money-back guarantee with no time limit
  • Payment plans available
  • Accredited by NATP and NAEA

Cons

  • Money-back guarantee doesn’t ensure reduced total payment amount
  • Mixed customer reviews
  • No consumer education focus

Many tax relief companies don’t offer a money-back guarantee at all. Others offer a full refund for the first 14 or even 30 days. Anthem Tax Services, however, offers a unique, no-time-limit guarantee. If the IRS refuses to reduce either your total debt or your monthly payment amount, the company will refund any fees paid for its services.

One important note here: Anthem Tax Services’ money-back guarantee doesn’t constitute a promise to reduce your total tax liability to the IRS. It’s entirely possible that the company will only be able to reduce your current monthly payment, meaning you’ll still have the same amount of debt, it will just be paid back in smaller amounts over a longer period of time. This may reduce the immediate financial burden but won’t save you any money in the long term.

Anthem Tax Services charges a flat-rate fee that is determined on a case-by-case basis. This fee can be broken down into a payment plan for those who can’t afford to pay upfront. The company is accredited by both the National Association of Tax Professionals (NATP) and the National Association of Enrolled Agents (NAEA).

We did notice a handful of customer reviews for Anthem Tax Services complaining about a lack of regular communication and updates. While reviews are still overall positive, with the company earning four out of five stars on most review sites, this is something to keep in mind. If you do decide to contact Anthem, it might be a good idea to ask upfront about what you can expect in terms of communications and updates from your case manager. You can contact Anthem by visiting the company's website or calling 844-377-6553.

BEST FOR LARGE TAX DEBT: Fortress Tax Relief

If you have a large tax debt, standard percentage-based fees will vastly overcharge you compared to the amount of work required for your case. Fortress Tax Relief’s hourly-based fee structure gives you the best opportunity for savings with a major IRS tax debt.

Pros

  • No percentage-based fee structure
  • Offers a monetary customer service guarantee
  • Handles state tax debt in all 50 states

Cons

  • Minimum tax debt of over $10,000
  • Not accredited by any industry organizations
  • Limited business services

It’s common for tax relief companies to calculate fees based on a percentage of the overall tax debt you currently owe to the IRS. With large tax debt, this can quickly add up to an exorbitant amount that doesn’t reflect the number of hours required to resolve a higher-debt case. For example, a $20,000 debt probably won’t take twice the amount of work to resolve compared to a $10,000 debt.

Fortress Tax Relief offers a unique approach by generating quotes based on the estimated time required. Hourly fees for an attorney vary, but typical EA hourly rates range from $100-$200 per hour. For consumers with large amounts of tax debt, this means you’ll probably pay significantly less than you would with percentage-based tax relief companies. (Still, it never hurts to get a few quotes from different companies just to make sure).

There are a few other perks to working with Fortress Tax Relief, including their comprehensive customer service guarantee. Clients with active cases are guaranteed to have their phone calls and emails returned within two business days. If the company fails to meet this promise more than once, the client will receive a $100 account credit for each subsequent occurrence.

While Fortress Tax Relief provides individual state tax debt services in all 50 states, its business services are relatively limited. The company is also not a member of any of the common industry accreditation organizations.

(sources: investopedia.com, nerdwallet.com)