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Best Questions to Ask a Tax Relief Company (2026)

Ten questions to ask any tax relief company before you sign: who represents you, how fees work, refunds, OIC eligibility and what you could do free.

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Written by Safwan Al-Sayyad Global Gate Tax and Accounting, Irvine, CA

Updated September 2026

The best questions to ask a tax relief company are who, specifically, will represent you before the IRS and what credential they hold; exactly what you will pay and when; and what you could do yourself for free. A firm that answers those three clearly, in writing, before taking money is usually worth a closer look. The ten questions below, and the answers you should expect, are based on guidance from the IRS and the Federal Trade Commission.

  1. Who will represent me, and what is their credential?

    Only three credentials carry unlimited rights to represent you before the IRS: enrolled agents, CPAs and attorneys, per IRS.gov. Annual Filing Season Program participants have limited rights that don’t extend to collection or appeals, and since January 1, 2016, preparers with only a PTIN have no authority to represent clients at all.

    Ask for the name of the person who will sign your Form 2848, then confirm their credential in the IRS Directory of Federal Tax Return Preparers or with the state licensing board. A salesperson is not a representative.

  2. Will you pull my IRS transcripts before recommending anything?

    A serious firm will want your actual IRS account records before it proposes a strategy. With your signed Form 2848, a representative can act for you and inspect your confidential tax information, per IRS.gov. You can also download your own transcripts free through your IRS Online Account.

    Be wary of anyone who names a settlement figure, or promises an offer in compromise, on the first call without seeing your transcripts and finances. Your balance, filing gaps and collection deadlines all shape which options are realistic.

  3. What exactly will I pay, and when?

    Get the total fee in writing, and find out whether it is a flat fee, an hourly rate or charged in stages (for example, an investigation fee followed by a resolution fee). Ask whether there are monthly maintenance charges; the FTC warns that these can add up over time.

    The FTC’s advice is blunt: don’t do business with anyone who tells you to pay their whole fee upfront. A fee quoted upfront is different from a fee collected upfront; you should know the number before work begins, and see how payment lines up with the work.

  4. What is your refund policy if you can't deliver?

    The FTC suggests asking how billing works and whether you get a refund if the company does not deliver the services it promised. Get the refund terms in the engagement letter, not in a sales call.

    Look for specifics: what counts as “delivered” (a submitted offer? an accepted one?), whether any portion is non-refundable, and how quickly a refund is paid. Vague wording here is one of the clearest warning signs you will see before you sign. If the firm won’t put its refund policy in writing at all, keep looking.

  5. Do I actually qualify for an offer in compromise?

    Aggressive offer-in-compromise marketing, known as “OIC mills,” is on the IRS’s 2026 Dirty Dozen list of scams. These firms promote offers to people who clearly don’t qualify and charge high fees for it, per IRS.gov.

    Before paying anyone, run the free IRS Offer in Compromise Pre-Qualifier. The IRS generally won’t accept an offer if it believes you can pay in full through a lump sum or a payment plan, and the offer application alone costs $205 plus an initial payment (per IRS.gov, September 2026). An honest firm will tell you if a payment plan fits better. Compare firms in our offer in compromise help services guide.

  6. What could I do myself for free?

    A trustworthy firm will say so when you don’t need it. The IRS offers payment plans online: individuals owing $50,000 or less in combined tax, penalties and interest can apply for a long-term plan themselves, per IRS.gov in September 2026. The Taxpayer Advocate Service (877-777-4778) is free, and Low Income Taxpayer Clinics represent eligible taxpayers for free or a small fee.

    The FTC points to these same options. If your case is a straightforward payment plan, paying a firm may not add value.

  7. What will happen to IRS collection while you work?

    Ask how the firm will protect your wages and bank accounts during the case. The honest answer depends on timing. A timely Collection Due Process request generally bars levy while it is pending; the IRS is generally prohibited from levying while a payment plan request is pending; and it suspends other collection while an offer is pending, per IRS.gov and Publication 1660.

    If a firm says it can “freeze” everything instantly regardless of your situation, ask which specific rule it is relying on.

  8. How will you get and keep me compliant?

    Most IRS resolutions require you to be current. The IRS won’t consider an offer in compromise unless you have filed all required returns and made required estimated payments, per IRS.gov, and a payment plan can default if new balances appear.

    Ask who will prepare missing returns, whether that costs extra, and how the firm will help you avoid owing again next year. A resolution without a compliance plan can unravel quickly, and a defaulted agreement can put you back where you started, facing levy notices again.

  9. Who is my point of contact, and how often will I hear from you?

    Tax cases can take months. Ask for the name of your case manager, how you will receive copies of what is sent to the IRS, and how fast the firm answers calls and emails. Ask to be copied on every IRS letter the firm receives under your power of attorney.

    Also ask what happens if your assigned representative leaves. You want the case file, not just a new sales pitch, to follow you. Clear answers here usually predict how the rest of the case will be handled.

  10. Where can I check your complaint record?

    Look the firm up with the Better Business Bureau and your state attorney general, and search its name alongside “FTC” for any enforcement history. The FTC takes complaints about tax relief companies at ReportFraud.ftc.gov.

    Check that the credentials you were told about exist: enrolled agents, CPAs and attorneys can be confirmed through the IRS directory or the relevant state board. Read reviews for patterns, such as fee disputes or missed deadlines, rather than for the star average. How a firm responds to its unhappy clients tells you more than its happiest ones do.

Get the answers in writing

Ask for an engagement letter that names your representative, the services covered, the total fee and the refund terms before you pay. Our comparison of tax relief companies uses many of these same criteria, and how our process works shows the steps one firm follows. Global Gate Tax Relief offers a free consultation at 1-877-800-8180 if you want to put these questions to a licensed professional.

Frequently asked questions

No. Only enrolled agents, CPAs and attorneys have unlimited representation rights. Preparers with just a PTIN have had no authority to represent clients since January 1, 2016, per IRS.gov.

Related guides and services

Sources

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This guide is general information, not tax or legal advice. Tax rules and IRS procedures change; check the linked IRS sources or speak with a licensed professional about your situation. Individual results vary.