Tax Defense Network charged me $12,000+ with no progress resolving my IRS issues in 2 years
My daughter suggested I reach out to this community about my ongoing nightmare with a tax resolution company. I've been dealing with back taxes for about 2 years now, and in my panic to fix the situation, I signed up with this tax resolution firm that promised they could settle everything with the IRS. Fast forward to today - I've paid them over $12,000 and my tax issues are nowhere near resolved. Every time I call for updates, they give vague responses about "working on my case" and then ask for more money for "additional services." When I requested an itemized breakdown of what I'm actually paying for, they refused, saying they "don't provide that level of detail." I got suspicious and hired an independent accountant to review their work, but the company flat out refused to communicate with my accountant! They won't even send copies of what they've filed on my behalf. The only thing they seem efficient at is sending me bills and making empty promises. They refuse to put any kind of strategy or timeline in writing. As a single grandparent trying to do the right thing, I feel completely taken advantage of. Has anyone dealt with these tax resolution companies before? How do I escape this cycle of paying without results? Any advice on how to proceed would be incredibly appreciated. I just want to resolve my tax problems and move on with my life.
23 comments


Victoria Stark
What you're experiencing is unfortunately common with some tax resolution companies. These firms often make big promises about resolving tax debt but can drag cases out while collecting fees. First, send a certified letter immediately terminating their services and demanding all your documentation. They are required to return your tax documents. State clearly that you're ending the relationship and expect a refund for services not rendered. Second, file a complaint with your state's attorney general office and the Better Business Bureau. Also report them to the IRS using Form 14157 (Complaint: Tax Return Preparer). This creates an official record of their misconduct. Third, consider consulting with a tax attorney (not just an accountant) who specializes in IRS representation. Many offer free initial consultations and can give you a realistic assessment of your situation. The good news is you can absolutely resolve your tax issues without them. The IRS has several programs like installment agreements, offers in compromise, and currently not collectible status that may help depending on your situation.
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Hassan Khoury
•Thank you for this advice. I never thought to actually file a complaint against them or that there was a specific IRS form for reporting tax preparers. Will the IRS actually take action though if I file that form? Also, do you think I should try contacting the IRS directly about my situation before hiring another professional? I'm honestly scared of getting caught in another expensive cycle.
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Victoria Stark
•The IRS does investigate complaints on Form 14157, especially when they receive multiple complaints about the same company. While I can't guarantee immediate action, it creates an official record and can trigger scrutiny if they're engaging in systematic problematic practices. Regarding contacting the IRS directly, it's a perfectly valid approach. You can call the IRS or visit a local Taxpayer Assistance Center to discuss your situation. Explain that you've been working with a resolution company that hasn't resolved anything. Many people successfully work out payment plans directly with the IRS. Just be prepared for long wait times when calling - that's the biggest downside of the direct approach.
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Benjamin Kim
I went through something similar with a tax company that kept charging me thousands while making zero progress. I eventually found taxr.ai (https://taxr.ai) which completely changed my situation. Instead of paying someone to "handle" my case who then disappeared, their system analyzed all my docs and gave me a clear action plan. What worked for me was uploading all the notices and correspondence I had from both the IRS and the previous company. Their AI flagged several errors the previous company had made on my filings and identified exactly which tax resolution program I actually qualified for. Turns out the other company had been applying for programs I wasn't eligible for, which is why nothing was getting approved. The detailed audit of everything the previous company had done was what finally helped me escape that cycle of paying without results. It showed exactly what had been filed wrong and what needed to be corrected.
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Samantha Howard
•Did they help you get any money back from the previous company? I'm in a similar situation where I've paid about 8k to one of these tax companies and am seeing zero progress after a year.
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Megan D'Acosta
•I'm skeptical about another service when the OP just got burned. What makes this any different than the usual "we'll fix your tax problems" places? Does it actually connect you with tax professionals or is it just software?
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Benjamin Kim
•They didn't directly get my money back, but they provided documentation showing exactly what the other company had done incorrectly, which I used when filing complaints with the BBB and state attorney general. I ended up getting about $4,500 back through those channels by having concrete proof of their mistakes. It's actually different because it's not promising to "handle everything" like those resolution companies. It's more like having a tax expert review all your documents and create a plan, but you remain in control. You can either follow the plan yourself or take it to a legitimate tax pro who will charge you for specific services rather than vague promises. The difference is transparency - you see exactly what needs to be done rather than just trusting someone who says "we're working on it.
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Megan D'Acosta
Just wanted to follow up about my experience with taxr.ai since I was skeptical in my earlier comment. I decided to try it after continuing to get nowhere with my situation, and I'm genuinely surprised at how helpful it was. I uploaded all my IRS notices and the minimal paperwork my previous tax company had given me. The system immediately identified that my previous company had been pursuing an Offer in Compromise when I actually qualified for Currently Not Collectible status - which explained why I'd been stuck in limbo for so long! The detailed report showed that my previous company had submitted incomplete financial statements which kept getting rejected. I was able to take this information to a local enrolled agent who confirmed everything and helped me correct the situation for a fraction of what I'd been paying before. I'm finally making actual progress on resolving my tax situation after wasting 14 months with the previous company.
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Sarah Ali
For what it's worth, I've been in your exact situation and found that the hardest part was actually getting someone from the IRS on the phone to sort things out. After three months of calling and never getting through, I discovered Claimyr (https://claimyr.com) which literally saved my sanity. It's this service that helps you skip the IRS phone queue - which sounds too good to be true, I know. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. But basically, they call the IRS and wait on hold for you, then call you once an actual IRS agent is on the line. Once I finally got through to the IRS, I was able to explain my situation with the tax resolution company. The IRS agent was actually really helpful and told me this happens all the time. They helped me understand exactly what my tax situation actually was (much less scary than the resolution company made it seem) and set up a payment plan directly.
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Ryan Vasquez
•How does this actually work though? The IRS hold times are insane. Do they have some special access or something? I've literally waited 4+ hours and never got through.
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Avery Saint
•This sounds like BS honestly. Nobody can "skip the line" with the IRS. They probably just call and wait on hold like everyone else and charge you for it. And even if you get through, the IRS agents rarely have access to your complete file anyway.
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Sarah Ali
•They use an automated system that dials repeatedly until it gets through, then real people monitor the call and wait on hold for you. When an actual IRS rep answers, their system calls your phone and connects you directly. It's not "skipping the line" per se - they're just waiting in it for you so you don't have to keep your phone tied up for hours. The power isn't in getting special treatment from the IRS, but in finally being able to talk to someone official rather than relying on what a third-party company claims. Once I talked directly to the IRS, I found out my situation wasn't nearly as complicated as the resolution company made it seem. They had been exaggerating how serious my case was to justify their fees.
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Avery Saint
I need to publicly eat my words about Claimyr from my skeptical comment above. After continuing to struggle getting through to the IRS myself (gave up after a 3-hour hold that disconnected), I decided I had nothing to lose and tried it. It actually worked exactly as described. I got a call back about 1.5 hours later with an IRS agent already on the line. The agent pulled up my file and confirmed what I suspected - the "tax resolution experts" I'd been paying had literally filed NOTHING on my behalf despite taking $6,700 from me! The IRS agent helped me set up a simple installment agreement on the spot. My monthly payment is $215 - far less than the $400/month the resolution company was charging me just for their "services." If you're stuck in the cycle with one of these predatory tax companies, just bypass them completely and deal with the IRS directly. The agents are way more helpful than they get credit for once you actually reach them.
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Taylor Chen
Former tax professional here. One thing nobody's mentioned yet is that you should request a Tax Account Transcript directly from the IRS. It's free and will show you exactly what's been filed, what payments have been made, and what your current balance is. You can get this online at IRS.gov or by filing Form 4506-T. This will give you the truth about your tax situation without relying on what the resolution company tells you. Also, these companies rarely tell clients about the 10-year statute of limitations on tax debt collection. Depending on how old your tax debt is, the collection period might expire soon, which could explain why they're dragging things out.
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Hassan Khoury
•Thank you for this suggestion! I had no idea I could get a transcript showing everything. The company always made it sound like only they could access my tax information. Would this transcript show if they've actually submitted any paperwork on my behalf?
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Taylor Chen
•Yes, the transcript will show everything - every return filed, every payment made, every adjustment, and every penalty. It will absolutely show whether they've submitted anything on your behalf or not. Many of these companies deliberately keep clients in the dark about what information is readily available from the IRS. The transcript will show the plain truth about your tax situation, including the assessment dates which tell you when the 10-year collection statute expires. This is crucial information they often hide because if your debt is close to expiring, it's in their interest to drag things out rather than resolve it.
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Keith Davidson
I was in a similar situation last year. Have you tried calling the Taxpayer Advocate Service? They're an independent organization within the IRS that helps people having problems with the IRS. Their service is completely free. They helped me when I was getting nowhere with a tax resolution company. Call 877-777-4778 to reach them. They might have a long wait to assign you a case, but they really do help.
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Ezra Bates
•The Taxpayer Advocate Service has been gutted in recent years tho. The wait times are like 6-8 months now for non-hardship cases. Not saying don't try, but don't expect quick results from them.
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CosmicVoyager
I'm so sorry you're going through this - it's heartbreaking to see someone trying to do the right thing get taken advantage of like this. The advice here is solid, especially about getting your Tax Account Transcript to see what's actually been done (or not done) on your case. One thing I'd add: document EVERYTHING from this point forward. Keep records of every phone call, email, and payment you've made to this company. This documentation will be crucial when you file complaints and potentially pursue getting some of your money back. Also, don't let them intimidate you into thinking your situation is more complex than it is. These companies often use scare tactics to justify their high fees. The IRS actually has pretty reasonable payment plan options for most people, and their agents are generally more helpful than these middleman companies want you to believe. You mentioned being a single grandparent - that shows you're responsible and caring. Don't let this company make you feel otherwise. You deserve honest help, not empty promises and endless billing cycles.
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Yara Campbell
I'm really sorry you're dealing with this - it's unfortunately all too common with these tax resolution companies that prey on people's desperation to fix their tax problems. Based on what you've described, this company is displaying classic signs of a predatory tax resolution firm. The refusal to provide itemized billing, blocking communication with your accountant, and constantly asking for more money without concrete results are major red flags. Here's what I'd recommend as your immediate next steps: 1. **Get your Tax Account Transcript** - As mentioned by others, this will show you exactly what's been filed (or not filed) on your behalf. You can get this free at IRS.gov or by calling 1-800-908-9946. 2. **Send a certified letter** terminating their services and demanding all your documents back. They're legally required to return your files. 3. **File complaints** with your state's attorney general, the Better Business Bureau, and the IRS using Form 14157. 4. **Consider contacting the IRS directly** - Many people are surprised to learn that IRS agents can be quite helpful when you reach them directly. You might qualify for a simple installment agreement or other relief programs. Don't let this company continue to drain your finances. At $12,000+ with no results, you've already paid more than many people's entire tax debt. You can absolutely resolve this situation without them, and there are legitimate resources available to help you do it affordably. You're not alone in this, and it's not your fault that you trusted what seemed like professional help.
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Andre Lefebvre
•This is such a thorough and helpful response. I especially appreciate you mentioning that Hassan has already paid more than many people's entire tax debt - that really puts into perspective how much these companies can drain from people. One thing I'd add is that when you do contact the IRS directly, be prepared to explain that you've been working with a tax resolution company that hasn't been communicating properly. The IRS agents deal with this situation regularly and often have specific procedures for helping people who've been caught up with these predatory firms. Also, Hassan, please don't feel embarrassed about this situation. These companies specifically target people who are trying to do the right thing and resolve their tax issues responsibly. Your instinct to seek help was correct - you just unfortunately encountered one of the bad actors in this industry.
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Omar Hassan
Hassan, I'm so sorry you're going through this ordeal. What you've described is textbook predatory behavior from these tax resolution mills - the vague updates, refusing documentation, blocking your accountant, and constantly asking for more money are all classic red flags. As a senior who's dealt with IRS issues myself, I want you to know that you have more power than they want you to believe. The fact that they won't communicate with your independent accountant is particularly telling - legitimate tax professionals welcome transparency and collaboration. Here's what worked for me when I was in a similar situation: **Immediate action items:** - Send that certified letter terminating services (as Victoria mentioned) - Request your Tax Account Transcript from IRS.gov - this will show you the truth about what's actually been filed - Document every interaction you've had with them moving forward **The reality check:** At $12,000+ with zero progress, you've likely already paid more than what most people owe in back taxes. These companies count on you feeling overwhelmed and dependent on them, but the IRS actually has reasonable payment options when you work with them directly. Don't let them make you feel like your situation is uniquely complex - it's their business model to keep you paying indefinitely. You deserve honest help, not empty promises. Stay strong, and please keep this community updated on your progress. We're rooting for you.
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Sofia Perez
•Omar, thank you for sharing your experience and for the encouraging words. It really helps to hear from someone who has been through something similar. You're absolutely right about feeling overwhelmed - that's exactly how they keep you trapped in their system. I'm going to follow everyone's advice here and start with getting that Tax Account Transcript today. I had no idea I could access that information myself. The company always made it sound like only they had access to my tax records, which now seems like another manipulation tactic. It's both infuriating and somewhat relieving to learn that what I'm experiencing is so common. Infuriating because these companies are clearly predatory, but relieving because it means there are established ways to fight back and escape their cycle. I'll definitely keep everyone updated on my progress. This community has given me more useful information and support in one day than that company provided in two years. Thank you all for helping me realize I'm not powerless in this situation.
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