5 Companies Offering State Tax Relief Services

Owing back taxes and being charged major tax penalties can be overwhelming. And if you don’t have the money to pay what you owe, the IRS can garnish your wages or place a lien on your property. The issues may not stop with the federal government; your state’s tax authorities can also take swift action if you haven’t paid your state taxes.

It’s important to act fast to resolve your tax debt and avoid serious consequences. If you’re not sure where to start, or simply don’t have the money to pay what you owe, reach out to one of the best tax relief companies to guide you through the process.

And if you need help with state taxes specifically, limit your search to the five companies below:

Table of Contents

1. Best state tax relief companies
   1. Anthem Tax Services
   2. Larson Tax Relief
   3. TaxRise
   4. BC Tax
   5. Optima Tax
   6. Honorable mention: Precision Tax Relief
2. What to expect from tax relief companies
3. FAQ

Best state tax relief companies

The five tax relief companies below offer federal tax relief options, from Offers in Compromise to installment agreements, but, importantly, they also help you pursue state tax relief, independent of your federal taxes.

If you need help securing state tax debt forgiveness options, one of these five companies is the way to go.

Anthem Tax Services

Best Money-Back Guarantee

4.9 _/5

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Why we like it

Anthem Tax Services has the industry’s best money-back guarantee. The company’s promise: “If we don’t save you money or rework your payments, you get your money back – guaranteed.” This is a big confidence boost, whether you need help with federal or state taxes.

• Best money-back guarantee
• Low minimum tax debt ($10,000)
• Positive customer feedback across review sites

• Pricing terms not clear from the start
• Deposit not included in money-back guarantee

Min. tax debt	$10,000
Free consultation?	Yes
State availability	Nationwide where applicable
Discovery fee	$500
Unique benefits	Industry-leading money-back guarantee

State tax services are available in all states that levy state income taxes

Larson Tax Relief

Best Initial Investigation

4.9 _/5

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Why we like it

Larson Tax Relief has the most exhaustive initial consultation of any state tax relief company we reviewed. When you finish a consultation with Larson, you’ll have a clear understanding of the next steps, as well as what your road to tax relief may look like. And unlike most other tax relief companies that charge you for discovery, its investigation (discovery phase) is free.

• Free discovery phase
• Thorough consultation
• Long time in business (20+ years)

• Higher minimum tax debt ($15,000)
• More limited (15-day) money-back guarantee

Min. tax debt	$15,000
Free consultation?	Yes
State availability	Nationwide where applicable
Discovery fee	$0
Unique benefits	No fee for discovery phase, which other companies typically charge for

TaxRise

Best Offer in Compromise Support

4.6 _/5

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Why we like it

Of all the state relief tax companies we reviewed, TaxRise has some of the best guarantees, like a 100% resolution guarantee and a 100% compliance guarantee. You can also get a free appeal if the IRS (federal taxes) rejects your Offer in Compromise.

• Free appeal for rejected Offers in Compromise
• Multiple guarantees
• Decent money-back guarantee program

• Limited free consultation
• Pricing terms not clear from the start
• State tax relief not available in every state

Min. tax debt	$10,000
Free consultation?	Yes
State availability	Nationwide where applicable
Discovery fee	Undisclosed
Unique benefits	Multiple guarantees, including free appeal for Offers in Compromise

BC Tax

Great for Transparent Expectations

4.6 _/5

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Why we like it

BC Tax is one of the oldest, most reliable, and best-reviewed tax relief companies for state taxes. While pricing may not be publicly available, the agents will be transparent about whether they can help before you pay a dime, thanks to the free discovery phase (much like Larson).

• Free discovery phase
• Positive customer feedback across review sites
• Long time in business (20+ years)

• Higher minimum tax debt ($20,000)
• Pricing terms not clear from the start
• More limited (15-day) money-back guarantee

Min. tax debt	$20,000
Free consultation?	Yes
State availability	Nationwide where applicable
Discovery fee	$0
Unique benefits	In business for more than 20 years

Optima Tax

Great Ongoing Protection Plan

4.2 _/5

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Why we like it

Optima Tax is another great option for state tax relief, but we also like the company for what it can provide after. Tax Shield, Optima’s ongoing proactive tax protection plan, can help you avoid future issues with state and federal taxes. Of course, this comes at a steep monthly cost.

• Optional ongoing tax support
• Low minimum tax debt ($10,000)

• More limited (15-day) money-back guarantee
• Mixed customer reviews
• Pricing terms not clear from the start

Min. tax debt	$10,000
Free consultation?	Yes
State availability	Nationwide where applicable
Discovery fee	$295
Unique benefits	Optional ongoing tax support through Optima’s Tax Shield program

Honorable mention: Precision Tax Relief

While the state tax relief companies above offer both federal and state tax relief services, you aren’t required to pay for both. That’s helpful if you only need help with the IRS or your state’s tax authorities.

However, if you do need help with both (and if you need help with state tax relief, it’s a good bet you might need help with federal taxes, too), there is another company we recommend: Precision Tax Relief.

We rated Precision a 4.4 out of 5 and primarily recommend it for its stellar customer service, transparent pricing, and the 30-day money-back guarantee. Precision will help with state tax relief, but only if bundled with federal tax assistance. Visit the site to learn more.

My firm helps with wealth optimization and tax minimization. During tax season, I spend time in an all-female CPA team helping to complete tax returns. The rest of the year, I help with longer-term tax strategy. As an Enrolled Agent, I’m constantly receiving questions from the community on cases.

In my experience, clients who owe federal taxes often owe state taxes as well, especially when the issue stems from failing to file returns. (Don’t do that! Our taxes fund important services that we all benefit from.)

Because the U.S. tax system is “pay as you earn,” W-2 employees usually have taxes withheld throughout the year, which can limit how much they owe at filing time.

Business owners, however, are more vulnerable if they don’t make quarterly estimated payments. Missing those payments frequently leads to both federal and state tax debt, along with added penalties and fees.

What to expect when hiring a state tax relief company

Whether you’re hiring a tax relief company to help with state taxes, federal taxes, or both, you can expect a fairly standard process, regardless of which company you go with.

State tax relief process

Most state tax relief companies operate along the following lines:

1. Initial consultation: This consultation will usually be over the phone, unless you find a local, in-person tax relief company. During the consultation, an agent will ask questions to better understand your needs. This should always be free of charge with no obligation to move forward.
2. Discovery or investigation: Next, the company will conduct a comprehensive review of your tax situation. You’ll need to provide access to all relevant documents and any other financial information. Most companies charge for this work; a few (Larson and BC Tax) do not.
3. Negotiation: If you agree to move forward following the discovery phase, the company will start to negotiate with your state’s tax office to come to a resolution for your tax debt. We’ll cover what some of these resolutions are in the next step. This process can take a year or more.

State tax relief solutions

Tax relief companies have a number of ways to try to resolve your debt with the state. Here are some of the strategies they’ll attempt:

• Installment agreements: If you owe a large sum, tax relief companies can help persuade the state to set up an installment plan, in which you make small payments over a set number of months or years, without accruing interest or penalties. That said, this is one strategy you might be able to do on your own; here’s how to set up a payment plan with the IRS or your state.
• Offers in Compromise: Tax relief companies can also try to get the state to agree to a smaller amount, called an Offer in Compromise (OIC). If successful, you’ll need to make that payment, and the government will consider your debt settled.
• Currently Not Collectible status: Tax relief companies can also help you get approved for Currently Not Collectible status with your state, during which the state agrees to pause efforts to collect your tax debt while you get your finances in order. However, interest and penalties will continue to accrue.

Other strategies these companies can help you pursue include innocent spouse relief, military relief, and penalty abatement.

State tax relief costs

Each tax relief company has its own payment structure, and it’s usually not published on the company’s website. That said, you can expect to pay a fee for the discovery or investigation phase (though some companies offer this free of charge), as well as a fee depending on the type of tax relief you move forward with, such as an Offer in Compromise or penalty abatement.

The table below shows common costs for various tax relief services, but understand these prices may vary by state and company.

FAQ

Do states have tax relief programs?

Yes, states have tax relief programs designed to help taxpayers manage and resolve their state tax debts. These programs vary by state but often include options such as payment plans, Offers in Compromise, and penalty abatements. State tax authorities provide resources and support to help individuals and businesses navigate their tax obligations and seek relief when needed.

Are state tax relief services legitimate?

Yes, state tax relief services are legitimate when provided by reputable companies. These services involve professionals, such as enrolled agents, tax attorneys, and CPAs, who assist taxpayers in negotiating with state tax authorities to resolve outstanding tax debts. Choosing a trustworthy tax relief company with positive reviews and proper accreditations is essential to ensure you get legitimate and effective assistance.

Does state tax relief hurt your credit?

Generally, state tax relief itself does not hurt your credit. However, if you have tax liens, they may appear on your credit report and affect your credit score. Resolving your tax debt through a state tax relief program can help improve your financial situation and may prevent further negative impacts on your credit. It is important to address tax issues promptly to minimize potential credit damage.

How we selected the best state tax relief services

LendEDU evaluates tax relief companies to help readers find the best tax relief services. Our latest analysis reviewed 400 data points from 20 companies, with 20 data points collected from each. This information is gathered from company websites, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best state tax relief providers

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