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Are there any honest, reliable companies who do tax relief?

Robert James, 20+ years of experience in IRS matters
Answered on September 27,2023

Tax debt settlement is a real thing, IF YOU QUALIFY. You could do it yourself, but if you struggle with understanding tax or law, you may be better off leaving it to a pro.

IMO, use a local credentialed tax professional (CPA, Enrolled Agent, or attorney) who has tax resolution experience. You can also check your state board of accountancy, your state bar association, the NAEA, a local Low Income Tax Clinic, or a website like TaxCure that matches taxpayers with tax professionals working in this area.

The large regional and national firms have a tendency to overpromise and underdeliver, all while charging extremely high fees. Their MO is to string it along, trying various tactics that don't work so that they can keep billing you.

If anyone tells you they can get your debt reduced just off of a phone call, be very wary. The IRS will only reduce or settle a debt for less if they cannot collect the full amount before the statute of limitations runs out. Even then, it isn't a back and forth negotiation like buying a car; it's a mathematical equation:

(Assets - liabilities) + ({income - minus allowable expenses} x months remaining in statute) = RCP (Reasonable Collection Potential).

There are certainly exceptions and ways to present information favorably, but if anyone says they can get the debt reduced without asking for what amounts to put on a financial statement, they are giving you a line of crap.

Are there any honest, reliable companies who do tax relief?

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