What to Do if You Paid for Tax Relief and Nothing Happened

Why this happens

Tax relief companies range from competent to predatory. Those on the predatory side rely on a specific business model: high volume, minimal actual work, slow response, and client frustration designed to prevent refund requests.

Common reasons for silence or vague updates:

Overbooked and understaffed — They took your money but staffing can't handle the workload
Vague contract terms — Agreement says they'll "work toward" resolution, not guarantee one
Delay as strategy — Months of inaction make refund requests harder to justify
Case actually abandoned — Your file went into a drawer and no work is being done
Misalignment of expectations — You thought they'd resolve your debt; they only offer consulting
Financial pressure on the firm — Company is struggling and prioritizes cash inflow over service delivery

What you should have received by now

Legitimate firms provide clear deliverables and timelines. By now—depending on how long you've been waiting—you should have received some or all of the following:

Within first 30 days

Detailed service agreement specifying exactly what work will be done
Explanation of timeline and process
Request for tax documents, IRS notices, and financial information
Initial case review or assessment

Within 60-90 days

Filed tax returns (if promised)
Power of Attorney (Form 2848) filed with IRS
Initial correspondence with IRS (if applicable)
Strategy document outlining recommended relief options
Status update with specific next steps

Within 4-6 months

Formal relief application filed (OIC, IA, CNC, etc.)
Correspondence from IRS acknowledging receipt of application
Regular status updates (ideally monthly)
Clear documentation of all work performed

Within 6-12 months

IRS response to relief application
Acceptance or denial notice
If accepted, payment plan or resolution details
If denied, appeal strategy or next steps

If you're well past these timeframes and receiving vague updates or silence, you have clear evidence of non-delivery.

The timeline: expectations vs. reality

The IRS is slow. Relief applications take 6-24 months to process. But the tax relief company's work should begin immediately. There's no excuse for months of silence or vague responses.

What's reasonable to expect:

Response time to your calls/emails: 3-5 business days maximum
Initial case assessment: Within 30 days of receiving all documents
First filing to IRS: Within 60-90 days of signing engagement
Status updates: At minimum monthly; weekly is standard for active cases
Acknowledgment of your concerns: Immediate, not deflected

What's not reasonable:

"We're still gathering documents" after 6 months
"The IRS hasn't responded" without proof they actually filed anything
"Give it more time" without specific milestones
Calls or emails going unreturned for weeks
"Everything looks good" with no supporting documentation

How to document the gap

Create a clear record of what was promised versus what was delivered. This is your foundation for any complaint or dispute.

Original engagement letter or contract — What did they promise to do?
All emails and correspondence — Save everything. Show dates, promises, and responses (or lack thereof)
Payment records — Invoices, receipts, and proof of payment to the firm
Your documentation requests — Emails asking for status, proof of filing, etc. Keep dates
Their responses — Vague updates, delayed responses, or silence
IRS records requesting directly — Transcripts showing no work was filed (if that's the case)
Contemporaneous notes — Dates and times of calls, topics discussed, promises made

This documentation shows a clear timeline of non-performance. Courts, dispute processors, and licensing boards all want to see this record.

What records to request

Before escalating, formally request all records from the tax relief company. Send this in writing (email counts) and keep the response.

Request:

Complete file on your case (all documents they have)
Proof of all communications with the IRS (filings, letters, dates)
Copies of any forms filed on your behalf (2848, OIC, etc.)
Documentation of work performed and hours billed
Responses or acknowledgments from the IRS
Explanation of current case status with supporting documentation

If they refuse or provide incomplete information, that's additional evidence of non-performance. Many states require firms to provide client files within 10-30 days upon request.

Options for recourse

You have multiple paths to recover money or escalate the situation. The choice depends on the amount, your location, and how much effort you want to invest.

Disputes and chargebacks

If you paid by credit card, you can dispute the charge. The credit card company will require documentation that services were not delivered.

Provide your credit card company with:

Original contract outlining promised services
Timeline showing no work was completed
IRS transcripts showing no filings were made (if applicable)
Emails showing lack of communication or response
Proof you requested refund and were denied

Chargebacks are effective for recent transactions. If more than 120 days have passed since the charge, you may be outside the chargeback window.

State licensing complaints

If the firm includes CPAs, enrolled agents, or attorneys, they are regulated. Each state has a licensing board that accepts complaints about professional misconduct.

Filing a complaint is free and creates an official record. It won't get your money back immediately, but it can:

Trigger an investigation
Result in sanctions or license suspension
Force the firm to respond and provide documentation
Build a case if you pursue civil litigation

Contact your state's CPA board, state bar, or enrolled agent registry depending on who serviced your case.

Legal escalation

For larger amounts (typically $5,000+), consider small claims court or arbitration. These routes allow you to present your case before a judge or neutral arbitrator.

Bring:

Original contract
Payment receipts
Email chain showing lack of response or work
IRS transcripts proving no work was completed
Timeline of promised versus actual deliverables

Many consumers win these cases because the documentation is straightforward: they paid for a service that was not delivered.

How compliance review supports your position

A third-party compliance review provides independent documentation of what actually happened (or didn't happen) on your IRS account. This is particularly valuable in disputes because it's unbiased and based on official IRS records.

A review shows:

What was filed and when (or what was NOT filed)
Current status of your account according to official IRS records
What relief options are actually available
What work still needs to be done

This independent documentation significantly strengthens your position if you're disputing non-performance or seeking a refund. Courts, state boards, and arbitrators give heavy weight to documented, third-party assessments based on official records.