Optima Tax Relief Review
- Minimum debt
- $10,000
- Typical turnaround
- 2 to 12 months
- Fees
- $295 to $495 for initial investigation phase
$1,500 to $50,000+ for negotiation and resolution - Other details
- 15-day money back guarantee. Applies to fee paid toward the initial investigation phase.
Our verdict
This tax relief company may be able to help you resolve your back taxes, but there are no guarantees — and it’ll cost you.
Optima Tax Relief is a company that specializes in helping individuals and small businesses navigate complicated tax issues, such as owing back taxes. It offers a free consultation to discuss your situation and negotiates on your behalf to reduce your taxes or create a payment plan. But you need to owe at least $10,000 in taxes to qualify, the pricing structure is expensive but not transparent and many customers have similar complaints against the company.
Best for: Taxpayers with over $10,000 in tax debt who don’t want to deal with the IRS directly and have enough money to cover the expensive fees.
Pros
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Free initial consultation
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15-day moneyback guarantee
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Available in all 50 states
Cons
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Requires $10,000 in tax debt to qualify
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Pricing isn’t transparent
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Has a pattern of customer complaints
Is Optima Tax Relief legit?
Optima Tax Relief is a legitimate company founded in 2011 with an online presence, physical office and visible executive team. The company is accredited by the Better Business Bureau (BBB) and a member of the National Association of Enrolled Agents (NAEA) and the Business Consumer Alliance (BCA), in addition to being the recipient of numerous industry awards.
However, the company is currently involved in a class-action lawsuit, which alleges misconduct, negligence and violation of consumer laws. Optima denies all allegations of wrongdoing and claims it has acted in good faith and provided accurate information and services to clients.
How Optima Tax Relief compares to other providers
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What makes Optima Tax Relief shine?
Optima Tax Relief stands out due to its variety of services, such as audit representation, innocent spouse relief, state tax relief as well as payroll tax relief among others. The company’s staff is also experienced and includes not just tax attorneys but CPAs and enrolled agents. And the company holds high ratings on Trustpilot, with customers citing helpful and understanding associates.
Optima also offers a free initial consultation to help you assess your tax situation. If you’re unhappy with the service, you can get a full refund as long as you cancel within 15 days of signing up for the investigation period.
Where Optima Tax Relief falls short
While Optima Tax Relief can help you negotiate with the IRS or your state to settle your tax debts, it isn’t very up front about how much it can do to help you and what it may cost you overall. And, based on customer reviews, many Optima clients say they ended up with a payment plan they could have gotten on their own from the IRA without paying hundreds or thousands of dollars.
In its defense, Optima doesn’t guarantee you will save any money using its tax relief services. However, it could make that message a little more visible so that people in vulnerable financial positions could make a more informed decision.
Plus, Optima Tax Relief only offers relief services to taxpayers who owe at least $10,000. If you owe less than that, you’ll have to handle the tax debt on your own or shop around for another tax relief company. Or you can look into hiring a tax lawyer or other tax professional to help you. You may also want to contact your local IRS Taxpayer Assistance Center for help.
How much can I save?
There is no guarantee that you can save anything by using Optima Tax Relief. And, in fact, you may pay thousands of dollars only to find you can’t reduce your taxes at all. Basically, the only way to settle your taxes for less than you owe is if the IRS grants you an Offer in Compromise (OIC), which is difficult to qualify for.
How much does it cost?
Optima doesn’t disclose its fees on its website. However, the investigation phase usually costs $295, but more complex cases can cost $495, according to an Optima Tax Relief customer service representative. At the minimum, additional costs for resolution can range from $1,500 to as high as $50K or more, depending on how much debt you have and how long it takes to resolve your case.
Will Optima Tax Relief hurt my credit?
No, it will not hurt your credit score. For your tax settlement, Optima Tax Relief may file an Offer in Compromise. An OIC is an agreement between you and the IRS that allows you to settle your taxes for less than the amount owed. In this agreement, Optima Tax Relief may file liens with your submission, but it does not report these tax liens to credit bureaus.
Optima Tax Relief details
| Free quote or consultation | Yes |
| Services | Tax consultation, tax negotiation, tax settlement, tax resolution, tax preparation and audit protection |
| Minimum Debt | $10,000 |
| Average turnaround | 2 to 12 months |
| Fees | $295 to $495 for initial investigation phase $1,500 to $50,000+ for negotiation and resolution |
| Types of debt | Federal and state tax debts |
| Accreditations | IRS Power of Attorney (50 States), National Association of Enrolled Agents, A Rated by Business Consumer Alliance, IRS Continuing Education Provider |
| Direct or third-party negotiations | Direct negotiations |
| State availability | Available in all states, , although some services may not be available in all states |
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company you work with, you might pay other fees for third-party settlement services or setting up new accounts, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan if you ask.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can manage to pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
Optima Tax Relief contact info
| Phone number | 800-536-0734 |
| Customer service hours | Weekdays: 7 a.m. to 6 p.m. PT Saturdays: 7 a.m. to 6 p.m. PT |
| customercare@optimataxrelief.com | |
| X, formerly Twitter | @OptimaTax |
| @OptimaTaxRelief |
How to qualify for Optima Tax Relief
To qualify for Optima Tax Relief, make sure you meet these requirements.
- Owe at least $10,000 in tax debt
- Have a copy of your IRS notice, income documents, invoices and bank statements
- Be a US citizen
How the debt settlement process works
Here are the basic steps you’ll go through with Optima Tax Relief:
- Schedule a free consultation by calling 800-536-0734.
- Work with your advisor to determine if you qualify for one of the IRS’s tax settlement programs.
- Work with Optima to submit the appropriate forms.
- Pay off the settlement in one lump sum or separate payments if approved.
- Uphold the remainder of the agreement.
Optima Tax Relief reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 4.91 out of 5 stars, based on 236 customer reviews |
| Trustpilot Score | 4.8 out of 5 stars, based on 8,954 customer reviews. |
| Customer reviews verified as of | 23 January 2024 |
One of the most common complaints on both the BBB and Trustpilot is customers saying they paid thousands of dollars to Optima only to find out they still owed the same amount in taxes — or more due to added interest and penalties.
Similarly, reviewers said they ultimately ended up with an IRS payment plan, which they could have gotten themselves. Disgruntled clients also complained that the process took much longer than expected, customer service wasn’t very responsive and they felt they had been given a lot of false promises.
There were some positive reviews, however. Satisfied customers praise the excellent customer service and the knowledgeable and helpful staff that kept them up-to-date on the progress of their case and responded quickly to questions.
What do people on Reddit say?
Risks to tax debt settlement
While tax relief companies may be able to help you navigate your tax problems, it comes with risks:
- High cost. Tax relief programs may charge thousands of dollars to negotiate with the IRS on your behalf.
- Increased debt. If the settlement process drags out, you’ll accrue additional interest and penalties for non-payment — not to mention the fees for the service.
- No guarantees. There is no guarantee that a tax relief company can eliminate or even reduce your tax debt, which means you could spend a small fortune for very little result.
- Scams. Like most industries these days, there are scammers who take your money and do nothing for you. Be sure you’re dealing with a legit tax relief company if you decide to go that route.
Frequently asked questions
What else can Optima Tax Relief help me with?
Optima Tax Relief offers a full range of tax services, including help with audits, tax levies and liens, wage garnishment, penalties and interest. It can also prepare your annual taxes.
Are tax relief companies worth it?
Maybe not. Tax relief companies say they may be able to reduce or eliminate your tax debt, but they could leave you deeper in debt than you were before, warns the Federal Trade Commission (FTC). In general, the FTC recommends getting help directly from the IRS for your federal tax debt or your state comptroller for state taxes.
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Lacey Finder
Writer
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johnbasanes Finder
February 25, 2019
Hi Senyah,
Thank you for reaching out to Finder.
Tax relief services provide a great avenue in ensuring that all your options are available for you before filing and that tax experts would be assisting you in getting the most of your tax year as well as back taxes. They provide consultation as well as solutions that you could use in filing for your back taxes so you would not miss any details required in filing. Hope this helps!
Cheers,
Reggie
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Senyah
February 25, 2019
I have several years of open tax years. Is it wise that I start with a tax relief service?