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  3. Taxes

Best Tax Relief Companies of 2026

Priority Tax Relief, Larson Tax Relief, Community Tax and Tax Defense Network are our top picks

  • Best overall
    Priority Tax Relief
    4.5(100)
  • Satisfaction guarantee
    Larson Tax Relief
    4.9(569)
  • Customer service
    Community Tax
    4.6(862)
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By: Ashley Eneriz
+2 more
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Edited by: Kathryn Parkman
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Fact-checked by: Becca Blanco

Best Tax Relief Companies of 2026

Tax relief companies often make similar promises: reduce your tax debt, stop penalties and help you deal with the IRS. But not every company delivers the same level of support. We compared top tax relief companies based on customer reviews, services, costs and transparency to help you find a company you can trust.

Why trust ConsumerAffairs?
  • Our recommendations are based on what reviewers say.
  • 4,952,479 reviews on ConsumerAffairs are verified.
  • We require contact information to ensure our reviewers are real.
  • We use intelligent software that helps us maintain the integrity of reviews.
  • Our moderators read all reviews to verify quality and helpfulness.

Our top 4 picks for tax relief companies

  1. Best overall: Priority Tax Relief
  2. Best satisfaction guarantee: Larson Tax Relief
  3. Best customer service: Community Tax
  4. Best staff expertise: Tax Defense Network

We compared tax relief companies using verified customer reviews, tax professional credentials, satisfaction guarantees and company responsiveness. We adjusted the weight of each factor based on the award category. Read our full methodology for more details.

Compare the best tax relief companies

Learn More About Tax Relief
Best overall
Priority Tax Relief logo

Priority Tax Relief

4.5
100 reviews
Priority Tax Relief logo
Availability
Nationwide
Staff
Attorneys, enrolled agents, CPAs
Free consultation
Yes
Money-back guarantee offered
3 to 10 days
Get Started Read Reviews
Why we picked Priority Tax Relief

Priority Tax Relief is our best overall pick because it combines experienced tax professionals, a broad range of relief services and a straightforward process. Its team includes CPAs, tax attorneys and enrolled agents, and clients get a money-back guarantee if they change their minds early in the process.

Priority offers a full refund within the first three business days. After that, clients who cancel within 10 days may qualify for up to a 50% refund.

Choose Priority Tax Relief if: You want a versatile tax relief company with experienced tax professionals and a clear process.

Pros
  • Variety of tax relief services
  • Lots of experience
  • Helpful staff
Cons
  • Limited price transparency
  • Some communication issues
What reviewers say

Reviewers often say agents are professional and supportive. Complaints typically relate to rising fees and tax issues that remain unresolved after upfront payment.

I was facing significant late tax fees. With his help (Luis) my tax situation was a mess, facing significant late fees. During our conversation he called the IRS for me, with me on the line, and resolved the issue and reduced my tax bill by at least 50%. He was courteous, professional and very clear about the situation. This is a company that would send anyone to. I can’t upload a receipt because I was not charged, my situation was resolved with just 1 call to the IRS.”
gyda Charleston, SC
10/10 experience. Very timely, knowledgeable and efficient. They helped me negotiate not only my taxes but gave a consultation to all of my 1099 based employees on steps they can take to minimize their tax burden! Ask for Mason.”
Blake Houston, TX
I had a great experience with Priority Tax Relief. They truly saved me a lot of money and made a stressful situation so much easier to handle. The team was professional, responsive, and took the time to explain everything clearly. Mason was especially helpful throughout the entire process. He was patient, knowledgeable, and always made sure I understood my options. I really appreciate the support and dedication they showed. I highly recommend Priority Tax Relief to anyone who needs reliable and trustworthy tax assistance.”
Penelope Wenatchee, WA
Tax relief services

Priority specializes in a range of federal and state tax relief services:

  • Currently not collectible (CNC) status
  • Innocent spouse relief
  • Offers in compromise
  • Installment agreements
  • Penalty abatement
  • Wage garnishment relief
  • Bank levy release

Costs: Verified reviewers report paying between $1,500 and $7,500 for Priority Tax Relief’s services.

Best satisfaction guarantee
Larson Tax Relief logo

Larson Tax Relief

4.9
569 reviews
Larson Tax Relief logo
Availability
For federal and state tax relief nationwide
Staff
Enrolled agents
Free consultation
Yes
Money-back guarantee offered
30 days
Get Started Read Reviews
Why we picked Larson Tax Relief

Larson Tax Relief offers a range of tax relief services, including emergency and long-term tax relief. It also has an impressive track record of results. In fact, the company publishes redacted results that demonstrate its expertise, something we don’t typically see.

Choose Larson Tax Relief if: You want an established company that handles both individual and complex business tax problems.

Pros
  • Business tax relief services available
  • Money-back guarantee
  • Overall positive reviews
  • Family-owned and operated company
Cons
  • Limited price transparency
  • Strict refund window
What reviewers say

Reviewers like the knowledgeable, responsive case managers, though a few reported communication problems, stalled cases and trouble getting refunds.

… With just one phone call, Rui was able to strategically negotiate a hold on my collections that ultimately resulted in reducing my back taxes by an incredible $37,259.82. What impressed me most was his knowledge and strategy surrounding the CSED (Collection Statute Expiration Date). Rui understood exactly how to navigate the process and ensure the hold period aligned properly, which made a massive financial impact for me. … Their expertise truly changed my situation and gave me peace of mind.”
Darnel Middletown, IN
… In the end, Larson Financial successfully settled my tax liability from over $230,000 down to just $6,931. I still have a hard time believing it. I’m writing this review for anyone facing a similar situation. It can be done. You need the right team, and you need to be willing to be honest and vulnerable about your circumstances. Anyone who knows me knows that’s not easy for me, but trusting the process was one of the best decisions I’ve ever made. …”
Nolan Gorham, ME
I called expecting the old sales pitch but I got real answers and results! Jim didn’t give me a runaround but real advice and saved this disabled veteran from months of high anxiety. I highly recommend you call Jim. I spent time, just before calling Jim, on another call just to be told to set up an appointment for a future awkward talk/sales pitch. Jim took the time and listened for 16 minutes and went over several options I had in mind and others I wasn’t aware of. I thought of doing a cash out refinance on my home but he didn’t recommend doing that. I learned once Jim explained everything and now I have a game plan. Thank you, Jim. You made my month! He is a rare gem, a honest tax professional not out to fleece the masses like most.”
Eric Lagrange, OH
Tax relief services

Larson offers services to solve problems such as:

  • Back income taxes owed to IRS or state
  • Unfiled tax returns (missing tax returns)
  • Wage garnishments
  • Frozen bank accounts
  • Tax liens
  • Bank levies
  • High penalties and interest
  • Audits

Costs: Larson Tax Relief does not publish its prices online. Anecdotally, Michael in California spent about $9,000 for tax relief services. On the high end, Nancy in Texas said she paid more than $20,000 for tax representation.

Best customer service
Community Tax logo

Community Tax

4.6
862 reviews
Community Tax logo
Availability
50 states
Staff
Attorneys, enrolled agents, CPAs
Free consultation
Yes
Money-back guarantee offered
100% money-back guarantee
Read Reviews
Why we picked Community Tax

Community Tax stands out for offering support beyond the immediate tax problem. Along with tax debt resolution, it offers tax preparation, planning and an ongoing subscription service that includes annual tax filing and IRS notice monitoring. That can be useful if you want help getting out of tax trouble and staying on track afterward.

Choose Community Tax if: You want tax relief plus ongoing tax preparation and support.

Pros
  • Help with both tax debt and filing
  • Case-tracking app
  • Spanish-language services
  • Bookkeeping services available
Cons
  • Limited pricing transparency
  • Some reviewers report slow follow-through
What reviewers say

Reviewers praise helpful advocates and debt reductions, but some report slow communication and poor follow-through.

Teri has been working with me on my tax issues. I fell behind years ago, and things pile up to a point where I felt like the stress was going to be too much to handle. Her and her team have helped me find some peace in my situation as well as taught me how to better track my own expenses in my personal life as well as my business. They always answer me quickly to schedule a time to talk, and I never feel rushed with my questions. I’ve learned a lot because of them, and the comfort of knowing I’m not in this alone anymore has meant a lot to me.”
Brianna New Port Richey, FL
When you’ve lived with IRS tax debt for more than 11 years, it becomes more than just money—it becomes a burden that follows you every single day. My tax debt had grown to over $167,000, and throughout those years, I hired multiple tax relief companies, spending thousands of dollars hoping someone could finally solve my problem. Every company made promises, but none delivered the results I desperately needed. … Today, thanks to their hard work and dedication, my IRS tax case has been successfully resolved. The relief I feel is indescribable. For the first time in over a decade, I can finally move forward without the constant fear and anxiety that had become part of my daily life. If you are struggling with IRS tax debt and feel like no one can help, please give Community Tax an opportunity. They succeeded where others failed, and for that I will always be grateful.”
Dee Fort Worth, TX
Lots of praise to go around for the excellent communication and experience I’ve had with Brian, my Case Advocate, and his experienced team, Rebecca and Dennis. Even those answering my calls, like Nester, I compliment for giving me their full attention while putting my IRS anxiety at ease.
Maribel Austin, TX
Tax relief services

Community Tax specializes in tax resolution, plus ongoing tax support:

  • Tax debt resolution, including OIC, CNC and IRS payment plans
  • Back tax help
  • Penalty abatement
  • Wage garnishment relief
  • Innocent and injured spouse relief
  • Payroll tax relief
  • Tax preparation, including amended and missing returns
  • Tax planning and IRS notice support

Costs: Verified reviewers report paying about $500 upfront and $3,500 to $8,000 for full representation.

Best staff expertise
Tax Defense Network logo

Tax Defense Network

3.9
168 reviews
Tax Defense Network logo
Availability
Nationwide
Staff
Attorneys, enrolled agents, CPAs
Free consultation
Yes
Money-back guarantee offered
30-day guarantee
Read Reviews
Why we picked Tax Defense Network

Tax Defense Network has a relatively accessible entry point, accepting clients with at least $5,000 in tax debt. It handles a broad range of federal and state tax problems, and its fees start at $1,750. Interest-free financing is also available for eligible clients.

Choose Tax Defense Network if: You owe at least $5,000 and want financing options to help spread out the cost.

Pros
  • Interest-free financing available
  • Help available in Spanish
  • Physical locations in many states
Cons
  • Final costs vary by case
  • Some communication complaints
What reviewers say

Reviewers like the helpful specialists and debt reductions, though some mention poor communication and disappointing results.

… I was in a situation where a tax preparer made it look like I had a business, and I ended up owing $17,000. They got it all dismissed and got my taxes forgiven. I would highly recommend Heather and Della. … My only issue is that after my case was closed, another representative named Yami continued saying I owed money and had me sign a contract for services that I felt I did not need. A gentleman I spoke with reviewed the notes and confirmed that my case had already been handled and closed. That situation should have been resolved. Other than that, I would highly recommend Heather and Della.”
Erlanda San Bernardino, CA
When I found out Tax Defense Network is local, I gave them a chance and they didn’t disappoint. … As far as the process, mine was unique because the IRS saw me as deceased. I’ve been dealing with this for the past 10 years ever since I got my house. They were still taking my taxes out like it wasn’t, but they saw me as deceased. I’m still showing as deceased in some areas. Tax Defense Network still works with me in some level. They got most of my stuff done. I have nothing but good things to say about them. I never was upset with them about anything. They made sure everything was explained to me. I’ve been dealing with them since 2015. If it wasn’t for them getting me straightened out, I never would have got my house. So, I have nothing but praise with them. They didn’t promise me anything. They helped me. They were straightforward.”
Elmore Jacksonville, FL
I hired Tax Defense after several calls with accountants and tax professionals guiding me to just settle and set up a payment plan with the IRS. My call with Tax Defense went differently. I decided to move forward with them and it was clearly the right decision! The tax professional I worked with, Constance, was nothing short of a miracle worker. She got to work and just a few months later, my tax issues were resolved amenities had a significant refund sent back to me. It was a huge turn from what the others claimed was the best course for me. I am extremely satisfied with my results and it was a pleasure working with Connie! Wow!”
Suzanne Atlanta, GA
Tax relief services

Tax Defense Network specializes in state and federal tax debt resolution. Its main tax relief services include:

  • IRS and state tax relief
  • Offers in compromise
  • IRS payment plans
  • Currently not collectible status
  • Penalty abatement
  • IRS appeals
  • Tax liens, levies and wage garnishments
  • Unfiled and back tax returns
  • Audit representation
  • Innocent spouse relief

It also offers individual and business tax preparation, plus small-business services such as bookkeeping, payroll tax help, tax planning and sales tax nexus assistance.

Costs: Tax Defense Network’s service fees start at $1,750. On the high end, verified reviewers on our site report paying between $3,900 and $10,000 for tax resolution services.

Methodology: How we found the best tax relief companies

The ConsumerAffairs Research Team compared tax relief companies using verified customer reviews and company features.

We analyzed reviews from Aug. 1, 2022, to July 31, 2026, focusing on satisfaction with staff and customer service.

We also compared:

  • Types of tax professionals available
  • Satisfaction guarantees
  • Recent review volume
  • Company response rates

Each company received a score from zero to 10 for each metric. We then adjusted the weights based on the award. For example, “Best customer service” gives more weight to service ratings. We also considered how much recent review data was available when choosing our final picks.

Best tax relief companies by state
Best tax relief companies by city

Tax Relief Buyers Guide

Jump into our guides and start learning

In this guide

Top Picks

See who reviewers like

Priority Tax Relief logo
Larson Tax Relief logo
Community Tax logo
See our top picks

Simplify your search

Compare tax relief providers that match your needs.

In this guide, you’ll learn how tax relief services work, which tax relief options are available to you and how a tax relief company can help you negotiate with the IRS and potentially reduce your overall tax liability. Owing the state or the IRS can be overwhelming, but you don't have to tackle the nuances of the tax code alone.

Key insights

How much the IRS or state agency will settle for depends on how much you owe and how much the IRS deems you can afford.

Jump to insight

Due to the uniqueness of each person’s tax debt situation, many companies do not publish service fees online. Tax relief companies might charge as little as $250 for penalty abatement or upward of $10,000 for an OIC case.

Jump to insight

Most tax relief companies or attorneys offer installment agreements and other services to help you reduce or manage your tax debt. Some offer additional services that can help you stay compliant with future taxes.

Jump to insight

What is tax relief and how does it work?

Tax relief is any reduction or removal of liability in taxes owed by an individual taxpayer or business entity. Tax relief companies employ tax experts, including tax attorneys, certified public accountants (CPAs) and enrolled agents, who serve as intermediaries between their clients and the government. These tax experts work with the IRS or your local tax authority to find ways to resolve your tax debt.

It can take months or years to achieve tax relief. Patience and professional assistance are key.

When you work with a tax relief company, its professionals negotiate a tax relief program for you. Some IRS tax relief programs remove improper tax liabilities. For example, innocent spouse relief shields one spouse from the tax, interest and penalties that result from the other spouse's erroneous tax return.

Here are the steps that tax relief typically follows:

  1. Free consultation with a tax relief company
  2. Investigation/discovery phase
  3. Strategy development
  4. IRS negotiation
  5. Resolution and compliance

The timeline for tax relief can vary significantly depending on the complexity of your case and the type of resolution you pursue. Simpler solutions, like setting up an installment agreement, may take a few weeks to finalize. More complex options, such as an offer in compromise, can take several months to over a year, as the IRS carefully reviews your financial situation and supporting documentation.

Delays can also occur if additional paperwork is requested or if you have multiple years of unfiled returns. In general, taxpayers should be prepared for the process to take anywhere from a few weeks to two years.

Are tax relief companies legit?

Legitimate tax relief companies do exist and they can help taxpayers lower their tax debt or create an affordable payment plan. However, using a tax resolution company does not guarantee results or money-saving benefits. It is important to get a clear understanding of how much a tax resolution company will charge and how long it estimates the process to take before you begin.

What to do when you owe back taxes

When you owe more taxes than you can afford or don’t pay the full amount, you will owe back taxes. If you owe the IRS or local taxing authorities, you must make arrangements to repay or reduce the debt. You can’t reschedule the debt, but you can set up a payment plan.

“Most of the time, the IRS sends letters to taxpayers due to proposed reductions to their tax refunds or additional amounts owed,” said Kevin Matthews, an accounting professor at the George Mason University School of Business.

“Not addressing these notices can be risky, as the IRS usually will make the reduced credit or additional expense stick, leaving the client with a bill that they shouldn’t have to pay. Furthermore, they can levy money if the amount is not paid, and/or the IRS can also put a garnishment on payments or wages received to get their taxes paid.”

How much does tax relief cost?

Tax relief costs vary widely based on how complex your case is, how much you owe and which services you need. There is no standard pricing model across the industry, but most companies follow a similar fee structure made up of a few common components.

Here are some typical fees you may see:

  • Initial consultation: Many companies offer this for free, though some may charge a small fee.
  • Setup or investigation fee: Usually $400 to $600. This covers reviewing your tax transcripts, financial situation and determining your eligibility for relief programs.
  • Resolution fees: These are the main costs and can range from:
    • Under $1,000 for simpler services like penalty abatement
    • Around $500 to $2,500 for installment agreements or moderate cases
    • $3,500 to $10,000 or more for complex cases like an offer in compromise (OIC)

Tax relief companies typically use one of the following pricing models:

  • Flat fee: A set price for the entire case based on complexity
  • Hourly billing: Less common, but rates can range from $150 to $500 per hour, depending on whether you’re working with an enrolled agent, CPA or tax attorney
  • Percentage-based fees: Some firms charge a percentage of your total tax debt, often between 10% and 20%

In many cases, companies combine these approaches, charging an upfront investigation fee followed by a flat resolution fee.

How to choose a tax relief company

When choosing a tax relief company, you need to be cautious of scam companies that overpromise, overcharge and underdeliver results. When considering if the firm is a good fit for you, do the following:

  1. Check a company’s track record: How long has the company been in business? How many customers has it helped? Is it an accredited company by the National Association of Tax Professionals (NATP) or the National Association of Enrolled Agents (NAEA)? Read unbiased reviews on several different sites to get a feel of how customers are treated and if their tax debt was resolved in a reasonable amount of time.
  2. Get a customized plan: A tax relief company should take the time to sit down with you for a free consultation and give you a customized action plan and estimated timeline. You want to work with individuals who treat your case like it's one of a kind.
  3. Know who is working on your case: There are many different titles in the tax profession, but not all are equipped to handle every type of tax debt. For instance, tax attorneys can handle difficult cases that a public accountant might not have experience with. Understand who will be working on your case and what makes them qualified to do so.
  4. Look out for scammers: Common tax scams include fake emails and texts, social media scams, tax refund claims and outstanding tax bills. Knowing upfront about how to cancel services and refund options can help you avoid potential problems later on. Dealing with tax debt is a personal and stressful situation, so having an honest and supportive team is crucial.

Warning signs of tax relief scams

Common warning signs of tax relief scams include companies that:

The IRS releases an annual Dirty Dozen list that details the latest tax scams to watch for.
  • Ask for the full payment up front before any work is done
  • Pressure you to make decisions
  • Send unsolicited calls or emails
  • Lack credentials
  • Have vague communication
  • Promise or guarantee results

Know that the IRS will generally contact you for the first time by mail; they will never contact you by phone, text or email. The IRS also doesn’t leave pre-recorded voicemails, request payment information via phone or text, or send tax documents by email or text.

Types of tax debt relief services

Most tax relief companies or attorneys offer the following services to help you reduce or manage your tax debt. Other services, like releasing wage garnishments, stop the IRS from seizing your wages or assets to pay back taxes.

Offers in compromise

An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the full amount owed. Depending on your circumstances, an OIC may be the smartest way to handle your tax debts. An offer in compromise shrinks your tax liability based on what the IRS determines you can realistically pay.

To qualify for an OIC, you must meet the eligibility requirements set by the IRS and complete its online application. To determine what percentage of your tax bill you can pay, the IRS has you take a means test to assess your income, physical assets and expenses.

In some cases, the IRS will not settle or accept an OIC. In fiscal year 2024, the IRS only accepted about 21% of OIC applications. In that case, the taxpayer will be responsible for their full tax debt.

Installment agreement

An installment agreement is a monthly payment plan set up with the IRS where you pay your tax debt over a certain period of time. Unlike an OIC, you will pay the total amount of tax owed plus any penalties and interest that have accrued.

Penalty abatement

Tax penalty abatement waives IRS penalties for valid reasons. You might qualify if you:

  • Were penalty-free for three years before receiving the penalty you’re attempting to have waived.
  • Filed an extension request or if you paid or plan to pay the amount due.
  • Paid off the penalty before requesting the penalty abatement.
Currently not collectible

CNC status, also called a hardship extension, can be used to stop an IRS tax lien, levy, seizure or termination of an installment agreement. The IRS declares a taxpayer currently not collectible only if the taxpayer has no way to pay their debt while still paying basic living expenses. Once you receive CNC status, the IRS reviews your case annually to determine whether your financial situation has changed. Any tax refunds you qualify for may be kept by the IRS and applied to your outstanding tax debts.

Additional services
  • Innocent spouse relief: If your current or former spouse has a tax debt that you should not be responsible for, you can request innocent spouse relief. You could qualify for innocent spouse relief if your spouse or former spouse omitted or improperly reported items, including capital gains, on your joint tax return. To apply for innocent spouse relief, you must file Form 8857 no later than two years after the date on which the IRS first attempted to collect the tax from you.
  • IRS Fresh Start program: The IRS Fresh Start program is a streamlined installment plan that makes it easier for individuals and small businesses to pay back taxes while avoiding tax liens, interest, penalties, garnishments or seizure of assets. It began in 2011 for taxpayers who owe less than $50,000 and earn less than $100,000 per year, but the IRS expanded the program to include more flexible terms. You must be current with your tax filings for the present tax year and able to repay your tax debt within five years or less to qualify.
  • Audit defense: Many tax preparation companies provide assistance if your tax return is audited by the IRS or state taxing authority. When you opt for audit defense, the company will represent you in front of the IRS and ensure you don’t get into further trouble.
  • Bookkeeping: Bookkeeping involves recording all financial transactions, including purchases, sales, receipts and payments. A good bookkeeping system helps to track income and expenses, which ensures accurate financial records come tax time.

Pros and cons of tax relief companies

Pros

  • Expertise
  • Saves time
  • Better negotiation

Cons

  • Cost
  • No guaranteed results
  • Tax relief expert not always necessary

Tax relief companies can be useful for those drowning in tax debt. However, it’s important to have realistic expectations about success rates. While many companies successfully help clients set up payment plans or reduce penalties, outcomes depend heavily on your financial situation, the type of relief you qualify for and how much the IRS believes you can pay.

Because of this variability, no company can guarantee a specific outcome. A reputable tax relief provider should instead explain your likelihood of success based on your situation and outline realistic expectations before you commit to their services.

The most common complaint was that many individuals paid $3,000 to $10,000 for tax relief and had no results. Or they didn’t realize how easy it would be to negotiate with the IRS by themselves. Another common complaint was how long it took to see results — some individuals said it took up to two years to get a resolution.

Latest tax news

Staying up to date on tax news matters because filing rules, income thresholds and relief programs can change from year to year. Inflation adjustments, new legislation and IRS administrative updates can all affect how much you owe, when you must file and which tax breaks you may qualify for. Knowing what’s changed before you file can help you avoid penalties and spot savings opportunities.

  • Filing deadlines and extensions: The standard federal tax filing deadline remains in mid-April for most taxpayers, with extensions allowing additional time to file, but not additional time to pay. If you request an extension, you must still estimate and pay any taxes owed by the original deadline to avoid interest and penalties.
  • New tax legislation: Changes passed by Congress or implemented by the IRS can affect credits, deductions and compliance rules. For tax year 2025, taxpayers should pay close attention to any updates related to business deductions, clean energy incentives and expiring provisions from prior tax laws.
  • Tax brackets and standard deduction updates: For tax year 2025, income thresholds increased, which may reduce the portion of income subject to higher tax rates for some filers and slightly lower overall tax liability.
  • Social Security recipients: Recent updates may provide relief for certain Social Security recipients, particularly those with lower or moderate incomes. These changes can affect how much of your Social Security benefits are considered taxable and may reduce the total tax burden for qualifying retirees.

Alternatives to tax relief companies

If you're facing tax debt, it's possible to address it on your own without hiring a tax relief company. The IRS offers direct resources and tools to help individuals resolve their tax issues. Here are some alternatives:

  • Contact the IRS directly: The IRS offers installment agreements, offers in compromise and penalty abatement directly to taxpayers. You can apply for many of these programs online through the IRS website without any professional assistance.
  • Seek help from a nonprofit: Some nonprofit organizations and community-based groups offer free or low-cost tax assistance, especially for low-income individuals or seniors.
  • Consult with a CPA or enrolled agent: If your case is not overly complex, a certified public accountant or enrolled agent can offer advice at a lower cost than a full-service tax relief company.

While going the DIY route requires more time and effort, it can be a cost-effective way to handle simpler tax debt issues.

FAQ

Who qualifies for tax relief?

You may qualify for tax relief if you fall behind on tax payments and are unable to pay your taxes in full. Tax relief companies often require minimum tax debts before they help with back tax issues — $10,000 is the standard minimum debt requirement. It’s best to call several tax relief companies and speak to representatives to learn more about whether you qualify for back tax debt relief.

Can a tax debt be forgiven?

Tax debt can be partially forgiven under some circumstances. The IRS forgives an outstanding tax liability only when it can’t collect more than your present financial circumstances reasonably allow you to pay. Put another way: The IRS can’t force you to pay back taxes if it creates a financial crisis for you. Keep in mind that IRS tax debt forgiveness programs typically do not erase tax debts, but they do reduce their burden.

Can tax relief affect my credit score?

Yes, tax relief can affect your credit score. While the IRS is legally not allowed to report your tax debt to consumer credit bureaus, the information could be discovered depending on how your relief is structured, making it difficult to open a new line of credit. If this is a concern, ask your tax relief company for advice.

What is the IRS Fresh Start Program?

The IRS Fresh Start Program is an initiative designed to help struggling taxpayers pay off their tax debt more easily. The program provides expanded access to installment agreements, increased tax lien thresholds and more flexible OIC eligibility requirements. This program aims to make it simpler for taxpayers to manage their debt and avoid severe penalties.

How much does the IRS or state agency usually settle for?

How much the IRS or state agency will settle for depends on how much you owe and how much the IRS deems you can afford. In some cases, the IRS will not settle or accept an OIC, and the taxpayer will be responsible for their full tax debt.

Can tax relief companies stop wage garnishment?

Tax relief companies may be able to help stop wage garnishment by negotiating with the IRS, setting up an installment agreement or placing your account into currently not collectible status. While they cannot instantly stop garnishment in every case, taking action quickly can prevent further collection activity.

How much do tax relief companies charge?

Tax relief companies typically charge a combination of upfront and resolution fees. Initial investigation or setup fees often range from $400 to $600, while total costs can vary widely depending on the complexity of your case.

Simple services like penalty abatement may cost a few hundred dollars, while more involved cases can range from $3,5000 to $10,000 or more. Some companies may also charge hourly rates or a percentage of your total tax debt, so it’s important to request a detailed estimate before committing.

Can I negotiate with the IRS myself?

Yes, you can negotiate with the IRS yourself. Choosing between hiring a tax relief company and working directly with the IRS depends on the complexity of your tax situation, how much you owe and how comfortable you are navigating tax rules on your own. While professional help can save time and reduce stress, many taxpayers with simpler cases can resolve their debt without outside assistance.

Disclaimer

Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.

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    Guide sources

    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this guide include:

    1. Federal Trade Commission, “Trouble Paying Your Taxes?” Accessed Aug. 24, 2026. 
    2. IRS, “Companies who promise to eliminate tax debt sometimes leave taxpayers high and dry.” Accessed Aug. 24, 2026. 
    3. IRS, “Get help with tax debt.” Accessed Aug. 24, 2026.

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