If you’re late in filing or paying your taxes, things can quickly escalate. Penalties and interest will begin to accrue, and in more serious cases, the IRS may pursue collection actions such as liens and levies. For many taxpayers, navigating this process alone may seem overwhelming.
Tax relief companies aim to intervene by examining your financial situation, identifying potential resolution options, and communicating with the IRS on your behalf. These companies handle the paperwork and negotiations associated with programs such as installment agreements and offers in compromise in exchange for a fee. However, not all providers offer the same level of service or transparency, so it’s important to compare your options carefully and be aware of any red flags.
In this review, we’ll take a closer look at local tax, including its services, pricing structure, and reputation, so you can decide if it’s right for your situation.
Community tax overview
- Establishment:2010
- Headquarters: Jacksonville, Florida
- The client assisted with: 110,000+
- debt resolution: 1.3 billion dollars
- Service area: Nationwide
- Services provided: Tax preparation and resolution services
- expertise: Tax accountant, registered agent, certified public accountant, lawyer
- better business bureau: A+ by BBB, 4.13 stars after 138 reviews
- Trustpilot score: 4.4 stars after 831 reviews
Role of community tax
Community Tax helps individuals and businesses resolve tax issues with the IRS and state tax authorities. Its services span both tax preparation and tax resolution. This means that the company can not only help you file your returns, but also help you deal with your existing tax debts.
For new clients, the process typically begins with a free consultation. During this call, a representative will review your financial and tax situation and outline potential solutions. If you choose to proceed, the company will conduct a more detailed investigation and create a personalized plan based on your eligibility for specific IRS programs.
For federal tax matters, that plan may include:
- Installment Agreement (IA): A payment plan that allows you to pay off your tax balance over an extended period of time (often over several months to multiple years). Once approved, most collection actions are paused.
- Infringing Offer (OIC): A settlement option that allows you to resolve your tax debt for less than the full amount owed if you meet strict financial criteria.
- Currently unavailable for collection (CNC): Temporary status that suspends collection activities due to financial hardship. Interest and penalties typically continue to accrue during this period.
- Innocent Spouse Relief: Protects individuals who have joint tax liability due to a spouse or ex-spouse misreporting income or claiming inappropriate deductions.
- Reduced penalties: We often request that certain IRS penalties be reduced or removed based on a reasonable cause or first relief standard.
Once a strategy is developed, Community Tax will liaise directly with the IRS or state authorities, manage the necessary documentation, and negotiate on your behalf. As your case progresses, you will receive updates throughout the process.
How community tax pricing works
Community Tax does not publish standard prices on its website. Costs vary depending on the case, including the complexity of your tax situation and the services required.
As with most tax relief companies, pricing is typically structured in tiers.
- Initial consultation: During your toll-free call, a representative will review your situation and outline possible resolution options and estimated costs.
- Investigation phase (flat fee): The company obtains your IRS records, examines your financial situation, and determines which programs (such as offers in compromise or installment agreements) you may qualify for.
- Resolution stage (additional charge): If you proceed, Community Tax will complete the paperwork, file your application, and negotiate with the IRS on your behalf. The cost at this stage will vary depending on the services included.
Prices are not disclosed upfront, so you must request a quote to understand your total cost. Be sure to check the detailed breakdown of pricing, including what each tier includes and whether additional fees may apply.
After the case is resolved, Community Tax offers a $39 monthly subscription that includes ongoing support such as tax monitoring, preparation services, and identity theft assistance.
Advantages and potential disadvantages of community taxes
Here’s a breakdown of the main benefits and limitations to consider before taking advantage of community taxes.
Strong Points
- High praise from customers: The company maintains an average rating of over 4.4 stars across hundreds of customer reviews on Trustpilot, suggesting an overall positive customer experience.
- Scope of tax experts: Our staff includes registered agents, certified public accountants, and tax accountants to help us handle more complex cases.
- Free initial consultation: You can discuss your situation and understand potential costs before using our services.
- Ongoing support options: A CTAX+ subscription provides ongoing post-case monitoring, tax preparation support, and identity theft assistance.
Cons
- Non-transparent pricing: Community Tax does not publish its fees online, making it difficult to compare costs with other providers in advance.
- Costs can add up across phases. Fees are typically billed in stages (investigation and resolution), which can increase the total cost depending on the complexity of the case.
- May not be necessary in simple cases: If your situation is simple, such as setting up a basic payment plan, you may be able to work directly with the IRS for free.
Community tax reviews and reputation
Community Tax is accredited by the Better Business Bureau (BBB) with an A+ rating and average customer score of 4.14 out of 5 stars based on over 100 reviews. On Trustpilot, the company has an average of 4.4 stars across hundreds of reviews.
Overall, customer feedback tends to be positive. Many reviewers highlight prompt customer service, clear communication, and successful results in resolving tax issues.
However, not all experiences are consistent. Some customers have reported concerns about pricing transparency or reported that the total cost was higher than expected. Others have noted that the results did not fully meet expectations, which can happen given that results ultimately depend on individual financial circumstances and IRS approval criteria.
Community Tax vs. Competitors
Many of the major tax relief companies offer similar services. However, prices and quality of service may vary from product to product. For example, here we compare Community Tax’s services and ratings to some of its top competitors, such as Anthem and Optima.
When it makes sense to work with a tax relief company
Working with a tax relief company can simplify a complex and stressful process. A firm like Community Tax can handle your correspondence with the IRS, prepare your paperwork, and help you identify the most viable resolution program based on your financial situation.
However, these services can cost thousands of dollars. Therefore, it usually makes the most sense to engage a tax relief company when the potential savings or relief outweighs the cost of the service.
You may benefit from professional help if:
- Have a tax liability of $10,000 or more
- Facing IRS collection actions such as wage garnishments, liens, and levies
- I have multiple years of unfiled tax returns.
- have a complex financial situation, such as self-employment income, fluctuating income, or significant hardship;
On the other hand, if your situation is relatively simple, such as setting up a basic payment plan, you may be able to work directly with the IRS for free.
conclusion
Community Tax is a reputable tax relief provider offering a full range of services to resolve your IRS and state tax issues. The company is accredited by the Better Business Bureau, with mostly positive customer feedback and a solid track record.
That said, prices are not disclosed in advance and costs can vary widely depending on the case. To receive a personalized quote, you must complete a free consultation.
Before moving forward, it’s a good idea to compare quotes from multiple tax relief companies to see exactly what services are included. This allows you to better understand your total costs and ensure you’re getting the right value for your situation.
Frequently asked questions about local taxes
Is community tax legal?
Yes, Community Tax is a legitimate tax preparation and resolution company that has been in business for over 15 years. We are BBB accredited, highly rated by various third-party sources, and are an IRS-approved continuing education provider.
Can community taxes reduce my tax debt?
Community Tax supports several IRS programs that can help reduce your tax liability, including Offers in Compromise, penalty reductions, and innocent spouse relief. The company can also help you arrange installment agreements, making your tax debt more manageable.
Do I need a tax relief company to work with the IRS?
No, the same program is available directly to taxpayers and does not require a tax relief company to work with the IRS. However, a tax relief company may be able to streamline the process and leverage their expertise to obtain better results.
What services does community tax provide?
Community Tax provides tax preparation and resolution services to individuals and businesses at the state and federal level. We can help you prepare and file your tax returns and resolve past tax issues.
