7 Best Tax Debt Resolution Companies of 2023

Caitlyn Moorhead
fizkes / iStock.com
fizkes / iStock.com

Given that there are considered two absolutes in life, seeing how one is death, talking about the other seems somewhat lighter. Just because paying your taxes is something everyone must do doesn’t mean it’s always pleasant or easy. Whether your payment plan is focused on state taxes, federal taxes or even individual or business taxes, sometimes seeking the help of a tax professional or tax relief program can help immensely.

What Is a Tax Resolution Company?

Tax resolution companies or tax debt relief companies are designed to help create minimum tax debt by evaluating your returns to make sure you are responsible for the back taxes you’re being charged. Such companies employ tax preparers and tax attorneys who specialize in tax resolution.

This is an umbrella term for services that assist taxpayers with issues with the IRS, such as wage garnishment, community tax or minimum debt requirements.

7 Best Tax Debt Resolution Companies

If you have gotten yourself into some hot water with the IRS, dealing with them on your own can be overwhelming. However, there are tax resolution companies that can help you through your unique situation. Here are seven great tax debt resolution companies to consider:

  1. Anthem Tax Services

  2. Community Tax

  3. Fortress Tax Relief

  4. Larson Tax Relief

  5. Precision Tax Relief

  6. Tax Defense Network

  7. Tax Relief Advocates

1. Anthem Tax Services

  • Minimum tax debt requirement: None

Anthem Tax Services is accredited by both the National Association of Tax Professionals and the National Association of Enrolled Agents. They charge a flat-rate fee that ranges on a case-by-case basis. The company offers a money-back guarantee in the form of returning any fees you pay them if they should fail to alter your IRS tax repayment schedule.

Pros

  • Reasonable payment plans are available

  • No time limit on the money-back guarantee offer

Cons

  • Fewer options for consumer education

  • No guarantee for a reduction in the total payment amount

2. Community Tax

  • Minimum tax debt requirement: $8,000

Community Tax offers tax debt assistance and is Better Business Bureau accredited as well as IRS-approved. It also offers a 14-day money-back guarantee and specializes in the following areas:

  • Tax lien assistance

  • Stopping wage garnishment

  • Defense against IRS audits

  • Avoiding tax penalties and interest

  • Negotiation in payroll taxes

  • Tax extensions

  • Prevention of levy and seizure

  • Customized tax consultations

Pros

  • May accept cases under $8,000

  • Free online resource library and mobile app

Cons

  • Pricing is not as competitive as other companies

  • Automated chat support on its mobile app is not user-friendly

3. Fortress Tax Relief

  • Minimum tax debt requirement: $10,000

Fortress Tax Relief offers many resolution services for IRS tax debt or back tax issues and is great for cases involving large amounts of tax debt. If you call in, Fortress offers a free consultation. Additionally, though it is not accredited by a national tax association, it is highly rated by the BBB.

Pros

  • The fee structure is not percentage based, which saves you money on large tax debts

  • Can cover all 50 states for state tax debts

Cons

  • Fewer business services than leading competitors

4. Larson Tax Relief

  • Minimum tax debt requirement: $10,000

Larson Tax Relief has licensed tax professionals to help you with your case and make sure you don’t pay more than you owe to the IRS. It also offers an easy three-step process:

  1. Go over your potential options, such as liability disputes, offer in compromise settlements, penalty abatement and tax lien protection.

  2. You can customize your resolution plan once you sign an agreement and go over your flexible payment options.

  3. Get your case handled by a federally licensed enrolled agent.

Pros

  • Highly rated by the BBB

  • Good customer service

Cons

  • Higher minimum tax debt requirement than some leading competitors

  • No accreditation from national industry organizations

5. Precision Tax Relief

  • Minimum tax debt requirement: None

Precision Tax Relief is accredited by the American Society of Tax Problem Solvers and offers an all-inclusive flat-rate fee. It has helped hundreds of clients through the IRS offer in compromise program and has no hidden fees.

Pros

  • 30-day money-back guarantee

  • Long-established leader in the industry

Cons

  • Fewer online resources than leading competitors

  • Doesn’t offer tax audit representation

6. Tax Defense Network

  • Minimum tax debt requirement: $5,000

Tax Defense Network is accredited by the American Institute of CPAs, the American Society of Tax Problem Solvers, the National Association of Tax Professionals and the National Association of Enrolled Agents. The fees may vary, but it offers an array of personal tax relief services at both the state and federal levels.

Pros

  • Accredited by multiple national organizations

  • Offers tax relief services in both English and Spanish

Cons

  • Can be hard to predetermine what you’ll owe in fees

  • The website is only available in English

7. Tax Relief Advocates

  • Minimum tax debt requirement: $5,000

Tax Relief Advocates has tax resolution experts on hand to help you with a personalized strategy to make sure you are only paying the tax balance you owe and not more than you can afford. Here are some of the areas this company can assist you with when it comes to getting a tax resolution:

  • Tax audits

  • Reducing your tax debt

  • Preventing bank levies

  • Stopping wage garnishments

Pros

  • Offers a free and confidential tax consultation

  • You can receive personalized back tax relief options

Cons

  • Not accredited by a national organization

Final Take To GO

If you’re ready to sign up with a tax relief service, you should first seek out assistance from a legitimate and accredited company. You can often get a free tax consultation from experts before you take the next step. If you are struggling with tax debt, be sure to explore your options and get help before sinking deeper.

FAQ

  • Are tax relief services legitimate?

    • Yes, you can find highly rated, secure or nationally accredited tax relief services. Though you should always research which company would best suit your needs, here are some recommendations:

      • Anthem Tax Services

      • Community Tax

      • Fortress Tax Relief

      • Larson Tax Relief

      • Precision Tax Relief

      • Tax Defense Network

  • How much will the IRS usually settle for?

    • The amount the IRS will settle for varies case by case as it will depend on what the IRS thinks you can reasonably pay as well as other factors such as your assets, income, savings and monthly expenses.

  • Why am I getting calls from tax relief companies?

    • Be aware of any unsolicited tax relief company robocalls offering to reduce your tax debt or assistance in past due balances as these may be scams. Always do your research and seek out your own counsel when looking for tax debt resolution companies.

  • Who qualifies for the IRS Fresh Start Program?

    • To qualify for the IRS Fresh Start Program, you must meet at least one of the following requirements:

      • Self-employed: You have had a drop in income of at least 25%.

      • Single: You have an income of less than $100,000.

      • Married: You have an income of less than $200,000.

Information is accurate as of June 28, 2023.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

This article originally appeared on GOBankingRates.com: 7 Best Tax Debt Resolution Companies of 2023

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