what irs tax settlement company is best on reviews

Full Answer

What are the best tax relief companies?

Optima Tax Relief and Tax Defense Network have earned the top spots on our list because of their high quality services and positive customer reviews. Both companies offer services throughout the United States. Optima Tax Relief has a $10,000 minimum debt requirement.

What is a tax debt settlement company?

Debt that is related to deliquent tax payments is different from other kinds of debt. Debt settlement companies and debt consolidation companies do not specialize in resolving tax debt, so it's important to work with a tax relief company that's familiar with federal, state, and local tax laws.

Do tax settlement companies get clients satisfied?

The number of clients who get satisfaction from tax settlement companies is negligible, and most are virtually destitute financially. The vast majority of potential settlement clients need to work out payment plans with the IRS that allow them to clear out their tax balances over time while keeping their assets —and dignity.

What is an IRS tax relief settlement?

Tax settlement is an arrangement in which the IRS accepts an amount less than your outstanding taxes to retire the debt. A tax relief firm helps you negotiate an installment payment agreement, partial payment settlement agreement, tax penalty abatement or financial hardship status.

What is the best way to settle with the IRS?

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship....Apply With the New Form 656Ability to pay.Income.Expenses.Asset equity.

What percentage will the IRS settle for?

A "lump sum cash offer" is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.

Is it worth using a tax relief company?

Generally speaking, tax debts under $10,000 aren't worth paying a tax relief company to settle; you can usually settle them yourself without much issue. However, some people still may wish to have some professional assistance if they're struggling to resolve a small tax debt.

Do IRS settlements work?

Yes – If Your Circumstances Fit. The IRS does have the authority to write off all or some of your tax debt and settle with you for less than you owe.

How much does the IRS usually settle for with a offer in compromise?

Each year, the Internal Revenue Service (IRS) approves countless Offers in Compromise with taxpayers regarding their past-due tax payments. Basically, the IRS decreases the tax obligation debt owed by a taxpayer in exchange for a lump-sum settlement. The average Offer in Compromise the IRS approved in 2020 was $16,176.

How likely is the IRS to accept an offer in compromise?

A rarity: IRS OIC applications and acceptances for 2010-2019 In 2019, the IRS accepted 33% of all OICs. There are two main reasons that the IRS may not accept your doubt as to collectibility OIC: You don't qualify. You can't pay the calculated offer amount.

How much does a tax relief company charge?

On average, you can expect to pay around $4,000. Costs range between $1,000 (on the extremely low end) and over $10,000 for tax relief help.

Can you negotiate with IRS to remove penalties and interest?

First, you should know that it is possible to negotiate for an abatement of penalties and interest, but it is at the discretion of the IRS agent with whom you are working. Second, it takes time, sometimes a year or two, to negotiate with the IRS for a reduction of interest or penalties.

What is the IRS Fresh Start Program?

The Fresh Start Initiative Program provides tax relief to select taxpayers who owe money to the IRS. It is a response by the Federal Government to the predatory practices of the IRS, who use compound interest and financial penalties to punish taxpayers with outstanding tax debt.

How long does it take to settle with IRS?

Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your Offer in Compromise (OIC).

What is the minimum payment the IRS will accept?

What is the minimum monthly payment on an IRS installment agreement?Amount of tax debtMinimum monthly payment$10,000 or lessNo minimum$10,000 to $25,000Total debt/72$25,000 to $50,000Total debt/72Over $50,000No minimumMay 16, 2022

Can you negotiate with the IRS without a lawyer?

You don't have to hire a law firm or other tax professional to make an OIC. If your offer is rejected, you can appeal within 30 days using Request for Appeal of Offer in Compromise, Form 13711 (PDF).

Is the IRS forgiving back taxes?

The IRS rarely forgives tax debts. Form 656 is the application for an “offer in compromise” to settle your tax liability for less than what you owe. Such deals are only given to people experiencing true financial hardship.

What happens if you owe the IRS more than $25000?

Taxpayers may still qualify for an installment agreement if they owe more than $25,000, but a Form 433F, Collection Information Statement (CIS), is required to be completed before an installment agreement can be considered.

What if I owe the IRS more than 50000?

If you owe more than $50,000, you may still qualify for an installment agreement, but you will need to complete a Collection Information Statement, Form 433-A. The IRS offers various electronic payment options to make a full or partial payment with your tax return.

Can a tax attorney negotiate with IRS?

Tax lawyers can save you pennies on the dollar. However, tax lawyers can negotiate agreements with the IRS, such as offers in compromise, that allow you to pay less than your total balance. As a result, you can save hundreds or thousands of dollars while resolving your back taxes at the same time.

What is the best tax relief company?

The top two tax relief companies are rated so closely that both deserve mention here. Optima Tax Relief and Tax Defense Network have earned the top...

What is tax relief?

Tax relief is offered by the IRS when taxpayers have more debt than they can pay when they file taxes.The most common resolution options are an Ins...

How do I know if I qualify for tax relief?

There are different levels of tax relief for which you may qualify depending on your level of debt. The purpose of the free tax relief consultation...

How does tax relief work?

First, your preferred tax resolution company will likely offer you a free consultation (either by phone or in person) to see what can be done about...

How much do tax relief companies charge?

The few tax relief companies that are upfront with such information report that an average price range for comprehensive tax relief service is abou...

Can companies help me with state and federal taxes?

The majority of tax relief companies will be able to help with federal taxes, but only some may offer state tax relief services depending on where...

Will the company represent me before the IRS?

Yes. There are representative regulations on the different types of tax professionals, but enrolled agents do have full legal authority to represen...

Can tax relief companies really save me thousands of dollars?

Yes. Many tax relief companies hire licensed tax professionals who have either worked with or for the IRS in the past. These professionals can at m...

How do I know if a tax relief company is legitimate?

There are two things you should do to see if a tax relief company is legitimate: check past customer reviews (both negative and positive) and check...

Can I represent myself before the IRS?

Yes, this is essentially what a taxpayer is doing when he or she does not hire a tax relief company. However, the advantages of hiring a tax relief...

What are the tax relief companies near me?

We compared the best local tax relief companies across the United States to help you find trusted tax relief services in your city.

How much does a tax relief agent charge?

After a free initial consultation, tax relief agents usually charge a $400 to $600 setup fee. Tax relief companies vary on how they bill clients after this, however — tax resolution fees can be time-based, debt-based or a flat fee.

How does tax relief work?

Tax relief companies employ tax experts, including tax attorneys, certified public accountants and enrolled agents, who serve as intermediaries between their clients and the IRS. These tax experts work with the IRS to find ways for clients to resolve their tax debt. IRS debt help experts can also help by negotiating tax relief programs, tax debt settlement agreements or tax debt installment agreements.

What is tax resolution?

Tax resolution companies specialize in tax reduction strategies to resolve back tax debt and unfiled returns, including installment plans. IRS debt tax relief professionals also negotiate with the IRS and state tax commissions on behalf of their clients.

What to do if you can't pay your taxes?

Unpaid tax bills collect interest and monthly penalty fees. If you can’t pay everything you owe at once, negotiate with the IRS to come up with an installment plan. The IRS is patient — and even flexible — if you make an effort to set up a payment plan. Ask a tax relief company for help if you need assistance with tax problems, including:

Why do people owe taxes?

People who owe a tax debt often seek tax relief to reduce the amount they owe to the IRS or state tax agencies. Those who didn’t file a tax return, misfiled their return or were unable to pay taxes end up owing a tax debt that accrues penalties and interest. Many people facing this tax burden do not have enough liquid assets to pay the full amount at once and require assistance.

How long is the IRS money back guarantee?

Uses a two-phase relief program to handle IRS and state tax issues. Provides free confidential consultation. Includes 15-day money-back satisfaction guarantee. Attorneys and enrolled agents have resolved over $1 billion in debt.

When to contact tax relief company?

Taxpayers usually contact tax relief companies when they have received multiple notices from the IRS regarding debt and are now afraid they may face wage garnishment or asset seizure. Generally speaking, it only makes sense to contact a tax relief company if you owe at least $10,000.

How much does Fortress Tax Relief charge per hour?

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).

What happens if you fall into 5 figures of debt with the IRS?

So what do you do when you fall into five figures of debt with the IRS? Tax delinquency can lead to wage garnishment and asset seizure, which will further impact your finances and might even send you spiraling deeper into debt. This is when some people turn to tax relief companies as an option.

What is Community Tax Assurance Program?

The program includes access to a mobile app that performs tax account monitoring, access to your IRS transcripts, and quarterly tax reports. TAP is designed as a preventive solution to keep taxpayers from falling behind on payments in the first place with better education and preparation. If you’re struggling with a small amount of tax debt, this program could help you continue to stay out of debt after you’ve resolved your current financial situation.

What happens if the IRS refuses to reduce your debt?

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.

How long does it take for Fortress Tax Relief to return a phone call?

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.

How long does it take to get a refund from anthem tax?

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.

Which tax relief company has the best customer service?

The top two tax relief companies are rated so closely that both deserve mention here. Optima Tax Relief and Tax Defense Network have earned the top spots on our list because of their high quality services and positive customer reviews. Both companies offer services throughout the United States.

How do I know if a tax relief company is legitimate?

There are two things you should do to see if a tax relief company is legitimate: check past customer reviews (both negative and positive) and check the company/employee accreditations. If a tax relief company employs members of the NAEA, NATP, ASTPS, or members of any other reputable tax relief accreditations, you are sure to work with quality tax relief experts. Additionally, verify that the company employs tax professionals such as attorneys, CPAs, and enrolled agents.

What is tax relief?

Tax relief is offered by the IRS when taxpayers have more debt than they can pay when they file taxes.

How do I know if I qualify for tax relief?

If you'd like to know quickly if you qualify for tax relief, try giving a good debt relief company a call and schedule a consultation.

How does tax relief work?

Once you decide to work with a tax relief company, you will be assigned a representative who will examine your tax documents and be able to plead your case before the IRS.

How much do tax relief companies charge?

The few tax relief companies that are upfront with such information report that an average price range for comprehensive tax relief service is about $2,500–$5,000. However, it is not unheard of to find a tax relief company that charges as low as $500 for its services. Unfortunately, most tax relief companies do not disclose prices upfront, so the accuracy of these ranges may vary.

When do I need to work with a tax relief company instead of doing it myself?

As soon as you realize that you are in over your head (this is usually when the IRS begins to make moves against you), you should consider hiring a tax relief company. Though your reason for seeking tax relief services might be different from other people, a tax relief company is designed to handle a wide variety of tax issues.

Where is Tax Relief located?

Based in the Chicago suburbs , Tax Relief Inc. works with clients in all 50 states. Like most services, you'll need to start by getting in contact, so that their representatives can determine the extent of your tax problem and what course of action would be best. You can do this by giving them a call at their toll-free number, to set up your no-obligation consultation.

What is tax relief?

Tax relief services provide a lifeline for those who have serious tax issues. Companies that specialize in tax relief work with clients to determine their financial obligations and legal ways to reduce what they owe.

What is Tax Relief and How Do I Qualify?

Maybe you've lost your job and are struggling to make ends meet, or maybe you've experienced an unforeseen medical issue that has drained what little bit of money you managed to put aside in savings.

What is Fidelity Tax Relief?

Fidelity Tax Relief is a CA-based company that represents taxpayers from all 50 states, working with them to solve any tax debts with the IRS in an efficient way. They also want to help clients who might not be on the IRS' radar yet but who want to be proactive and tackle their obligations in advance - maybe because they want to get a loan for college or a home and need to have a clean credit report to do it. Their services are also available at a state level.

What is tax defense partner?

Tax Defense Partners, or TDP, have been helping customers in all 50 states since 1998. Unlike some of the service in our review that also offer debt consolidation and restructuring, TDP focuses solely on tax debt relief. According to their website, this focus means that their CPAs and IRS-Enrolled Agents settle more cases in the average month than most professionals handle in an entire career.

How long to pay IRS tax debt?

Tax Defense Partners suggests that if you have less than $10,000 in debt with the IRS and have filed all of your previous years' tax returns, you may prefer to contact the IRS directly and work out a 36-month payment plan. On the other hand, if you owe more than $10,000 or already are experiencing wage garnishments, levies, seizures, or other penalties, you should get in touch with the TDP team to work out an approach that can offer you tax relief.

How much does an OTR consultation cost?

We read in some customer reviews that a more detailed review will probably cost approximately $500, and that fees may be 20% of the original owed debt amount. Your specific fees will be determined when you work out your approach to tax relief with an Optima representative. The average case takes from two to six months to resolve.

What is the most popular tax relief company in the nation?

Optima is unequivocally the most popular tax relief company in the nation. It has the broadest reach and boasts the most significant customer base in the industry.

How many Americans owe back taxes?

Over 11 million Americans owe back taxes, and all indications point to that number growing in the future. If you’re here, chances are you’re one of them, and you’ve come to the right place. Here’s a list of the best tax relief companies operating right now that can help you negotiate with the IRS.

What is Optima Tax Relief?

Overview — Optima Tax Relief is the biggest brand in the tax debt relief space and has been in business for about a decade. It offers tax relief, resolution, and settlement services in all 50 states and has a reputation for coming through for its customers.

How much does it cost to get tax relief with Optima?

To initiate the tax relief process with Optima costs $495 in discovery fees. Discovery is the phase in which the company looks over your tax documents to determine the extent of your problem.

How long has Precision Tax Relief been in business?

Overview — Precision Tax Relief has been in the business for over 50 years. With that kind of clout, you might expect Precision to be the top pick, but a few minor setbacks earn it last place.

What is the BBB rating?

The Better Business Bureau — The BBB accredits tax relief services, but the bar for accreditation is low. Make sure you check the BBB rating as well as customer ratings and reviews.

How many parts are there in tax relief?

Fees vary widely in the tax relief industry, and they’re typically divided into two parts.

Why do you need to hire a tax relief expert?

Unless you have considerable experience with taxes or have expertise with tax law, you will greatly benefit from hiring tax relief experts with a clear understanding of the U.S. tax code and Internal Revenue collection procedures. This can give you an advantage in negotiating both the amount and the terms under which the money owed will be paid.

What is tax relief?

Most companies employ tax attorneys, certified public accountants (CPAs), and enrolled agents who assess and determine the best course of action for your case. They can assist you not only in negotiating debts with the IRS, but also in ensuring that you take full advantage of programs available to you.

Why do people use tax relief?

People turn to tax relief services to get expert advice on how to minimize their tax debts and to avoid the nerve-wracking ordeal of dealing with the IRS directly. Knowledgeable experts in your corner can make a huge difference. If you’re already being subjected to liens or levies, a tax relief service can significantly reduce the time it takes to restore full access to your accounts and property.

What can a tax attorney do to stop garnishment?

They can negotiate with the IRS to stop or release you from wage garnishments, tax levies, and liens. They can also work toward eliminating penalties or interest on your current debt. A central part of what they do is to negotiate settlements that may significantly reduce the amounts owed.

Who can determine if you qualify for tax relief?

Only the IRS or a state comptroller can make the final determination whether you qualify for tax relief. Be sure not to trust any company that promises otherwise. (This is why a reputable company will typically offer a free consultation, in order to determine if you will meet the IRS and/or state comptroller requirements). Anyone who owes more than they can afford to the IRS can potentially employ the services of a tax relief firm. But in order to even be considered, you must be 100% up to date on your yearly tax filings. Tax relief firms can then offer you different services depending on your particular situation.

Do tax relief services offer free consultation?

If you’re looking for tax relief services, you’ve probably already received some form of communication from tax authorities and are looking to tackle your pending debt. Before you commit to a tax relief service, you should know what the service is capable of doing for you. Most companies will offer free consultation.

Can you get tax relief if you are not able to pay?

Some negotiations, such as Offers in Compromise, attempt to reduce the total amount owed. Others, like a Currently Non-Collectible status, ask that your debt be forgiven based on your inability to pay. Yes, not having to pay is a possibility. But it’s not the norm, nor should it be in any way an expected outcome.

Our Top Picks for Tax Relief Companies

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Tax Relief Companies Guide

If your tax situation is too complicated to manage on your own, tax relief professionals could help bring you some peace of mind. However, there are important things to keep in mind that can help you choose the right company for you.

How We Chose the Best Tax Relief Companies

If you’re looking for professional assistance with your tax debt issues, consulting a tax relief company is likely at the top of your mind. While it is entirely possible to negotiate common tax debt issues yourself directly with the IRS, consulting a professional can often provide greater peace of mind.

What is tax settlement firm?

Known commonly as tax settlement firms, these entities claim they can either drastically reduce or completely eliminate whatever the client owes the IRS. But can these firms really deliver what they promise or is it buyer beware? This article examines how tax settlement firms work and their success rate.

How much does a tax settlement cost?

The majority of tax settlement companies charge their clients an initial fee that can easily run anywhere between $3,000 to $6,000, depending on the size of the tax bill and proposed settlement. In most cases, this fee is completely nonrefundable. This fee quite often mysteriously mirrors the amount of free cash the client has available. This is generally the amount of cash the company says it will save the client in tax payments.

Are Tax Settlement Companies Worth It?

On the other hand, good companies charge reasonable, transparent fees and have proven track records. Some companies charge a flat percentage of the amount owed to the IRS, such as 10%. Others charge an hourly rate that might range between $275 and $1,000. Some companies will not accept clients with a tax debt of less than $10,000.

What Does Tax Settlement or Tax Relief Include?

The tax settlement process generally begins with a free consultation. A case manager will review your current tax debt and other financial details and provide an estimate for their services. If you continue, the case manager will perform an in-depth investigation into your taxes, develop a plan of action, and negotiate with the IRS.

What is IRS offer in compromise?

Tax settlement firms use an accepted IRS procedure known as an offer in compromise in an effort to reduce their clients' tax bills. This is a special agreement that some taxpayers are able to make with the IRS to settle their tax debts for a lesser amount than what is owed. The taxpayer must supply substantial information to the IRS about their current assets and liabilities as well as projected future income. 1  2 

Why are tax settlements impossible?

Promises by tax settlement agencies are virtually impossible to fulfill because the IRS rarely accepts any real proposal to reduce the amount of tax owed. Qualifying for offers-in-compromise is difficult and typically takes at least several months to complete. Most tax settlement companies charge high fees.

Can IRS accept pennies on the dollar?

Most tax settlement firms promise to send their experts to the IRS to negotiate on behalf of the client, where they can presumably persuade the agency to accept a much smaller amount—often pennies on the dollar. In reality, this is virtually impossible to do, and the IRS rarely accepts any real reduction in the amount of tax owed.

What is the tax rule for settlements?

Tax Implications of Settlements and Judgments. The general rule of taxability for amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code (IRC) Section 61 that states all income is taxable from whatever source derived, unless exempted by another section of the code. IRC Section 104 provides an exclusion ...

What is an interview with a taxpayer?

Interview the taxpayer to determine whether the taxpayer provided any type of settlement payment to any of their employees (past or present).

What is the purpose of IRC 104?

IRC Section 104 provides an exclusion from taxable income with respect to lawsuits, settlements and awards. However, the facts and circumstances surrounding each settlement payment must be considered to determine the purpose for which the money was received because not all amounts received from a settlement are exempt from taxes.

What is employment related lawsuit?

Employment-related lawsuits may arise from wrongful discharge or failure to honor contract obligations. Damages received to compensate for economic loss, for example lost wages, business income and benefits, are not excludable form gross income unless a personal physical injury caused such loss.

What is the exception to gross income?

For damages, the two most common exceptions are amounts paid for certain discrimination claims and amounts paid on account of physical injury.

Is emotional distress excludable from gross income?

96-65 - Under current Section 104 (a) (2) of the Code, back pay and damages for emotional distress received to satisfy a claim for disparate treatment employment discrimination under Title VII of the 1964 Civil Rights Act are not excludable from gross income . Under former Section 104 (a) (2), back pay received to satisfy such a claim was not excludable from gross income, but damages received for emotional distress are excludable. Rev. Rul. 72-342, 84-92, and 93-88 obsoleted. Notice 95-45 superseded. Rev. Proc. 96-3 modified.

Is a settlement agreement taxable?

In some cases, a tax provision in the settlement agreement characterizing the payment can result in their exclusion from taxable income. The IRS is reluctant to override the intent of the parties. If the settlement agreement is silent as to whether the damages are taxable, the IRS will look to the intent of the payor to characterize the payments and determine the Form 1099 reporting requirements.