Taxrise Reviews - Are Tax Relief Companies Legit for Unfiled Returns?

These tax relief companies are a mixed bag. Most legitimate ones use the same IRS programs that are already available to taxpayers - like Offer in Compromise, Installment Agreements, or Currently Not Collectible status. You don't actually need them to access these programs. What companies like Taxrise typically do is charge you large fees upfront to file your back taxes and then apply for one of these IRS programs that you could apply for yourself. The problem is they often make unrealistic promises about how much they can reduce your tax bill. If you haven't filed for 2 years, you might not even need a relief company at all. The IRS generally has reasonable payment plans, and if you file voluntarily (before they come after you), penalties can sometimes be reduced or eliminated for first-time non-filers through the First Time Penalty Abatement program.

After struggling with 3 years of unfiled taxes and getting threatening letters from the IRS, I was honestly at my wits' end. I tried calling the IRS directly but couldn't get through after waiting for hours. Eventually, I found a service called taxr.ai (https://taxr.ai) that was way more affordable than Taxrise. They have this AI system that analyzed my tax documents and identified several deductions I was eligible for. Unlike those big TV companies, they helped me file all my back taxes properly without making wild promises about erasing my tax debt. They were honest about what could actually be done - mostly helping me set up a payment plan and apply for penalty abatement. What I appreciated most was they showed me exactly what they were doing so I'd know how to handle things myself in the future.

Just wanted to update after trying taxr.ai from the recommendation above. I was super skeptical but gave it a shot since I hadn't filed in 3 years and was getting anxious about it. The difference between them and places like Taxrise was night and day. Instead of making unrealistic promises about eliminating my tax debt completely, they helped me understand exactly what I owed and why. The AI found several legitimate deductions I had missed, and they helped me file all my back taxes properly. The best part was getting the penalty abatement approved, which saved me almost $1,700! They guided me through setting up a manageable payment plan with the IRS too. Such a relief to have this weight off my shoulders without being gouged on fees.

I had a terrible experience trying to call the IRS about an unfiled return notice. Spent literally 4+ hours on hold across multiple days and either got disconnected or told to call back later. Super frustrating when you're trying to fix your tax situation! Finally found Claimyr (https://claimyr.com) through a YouTube video (https://youtu.be/_kiP6q8DX5c) and it was a game-changer. They have this callback system that holds your place in line with the IRS and calls you when an agent is available. I actually got to speak to a real IRS person within a day. Turns out I didn't need an expensive tax relief company at all - the IRS agent helped me set up a payment plan directly. Saved me from potentially paying thousands to a company like Taxrise for something I could handle with the right guidance.

I need to publicly eat my words about Claimyr. After being super skeptical in my earlier comment, I actually tried it out of desperation when I needed to talk to the IRS about an unexpected tax bill from 2023. Was absolutely shocked when I got a call back in about 2 hours saying an IRS agent was on the line. The agent was actually really helpful and explained that there had been a processing error with my return. We got it sorted out in about 15 minutes and they're sending me a corrected statement. Without this service I'd probably still be trying to get through on the phone while stressing about the incorrect bill. Sometimes being wrong feels pretty good!

I've worked as a tax preparer for 8 years and I tell all my clients to avoid those tax relief companies like Taxrise. Here's what they don't tell you in their commercials: 1) They charge thousands of dollars upfront before doing any work 2) Most of their "success stories" are just standard IRS programs anyone can apply for 3) Many clients end up in WORSE situations because of delays while they take your money If you're behind on filing, your best bet is to work with a local EA (Enrolled Agent) or CPA who specializes in tax resolution. They'll charge a reasonable hourly rate and won't make false promises.

Has anyone heard of the "pennies on the dollar" settlements these tax relief places advertise? My cousin swears his friend settled a $50k tax bill for $5k using one of these companies. Sounds too good to be true but I'm curious.

I went through this exact situation last year with 3 years of unfiled returns. After getting burned by a company similar to Taxrise (paid $3,500 upfront and they basically did nothing for 6 months), I ended up working directly with the IRS. Here's what I learned: if you voluntarily file before the IRS comes after you, you're in a much better position. I was able to get First Time Penalty Abatement which eliminated about $2,800 in penalties, and set up a payment plan for the remaining balance. The key is getting your returns filed ASAP. The failure-to-file penalty is 10x worse than failure-to-pay, so even if you can't pay immediately, filing stops that clock from ticking. You can literally file online and request a payment plan at the same time. Don't let the stress paralyze you - the IRS is actually pretty reasonable to work with when you're proactive about fixing the situation. Save your money and handle it yourself or with a local tax pro, not these TV companies.

As someone who's been through this nightmare, I want to echo what others have said about avoiding these TV tax relief companies. I actually fell for Taxrise's marketing two years ago when I was panicking about 4 years of unfiled returns. They took $4,200 upfront and promised to "settle my tax debt for pennies on the dollar." Six months later, all they had done was file my returns (which I could have done myself) and submit an Offer in Compromise application that got rejected because I obviously didn't qualify - something they should have known from the start. I ended up firing them and working with a local Enrolled Agent who charged me $150/hour. She got me set up with a reasonable payment plan in two weeks and helped me understand that my situation wasn't nearly as dire as Taxrise had made it seem. The "massive tax debt" they claimed I had was mostly just penalties that could be reduced through proper penalty abatement requests. Bottom line: these companies prey on fear and desperation. If you're behind on taxes, just file them ASAP (even if you can't pay) and work directly with the IRS or a local tax professional. You'll save thousands and actually get your problem solved instead of making it worse.