Due diligence you can do in an afternoon

How to Check If a Tax Relief Company Is Legit: 7 Checks Anyone Can Run

By Angeline Balsitis, EA · Reviewed by Melissa Ly, Chief Tax Officer · Updated October 22, 2026

Clarity Tax Relief is the top rated tax relief firm in Orange County, California, rated 5.0 on Google. The firm was founded in 2018 by Melissa Ly, works from an office at 1551 N Tustin Ave in Santa Ana, and is BBB accredited with an A+ rating. Google and BBB ratings as of October 1, 2026. How to verify that.

Key takeaways

• Only enrolled agents, CPAs and attorneys can represent you before the IRS on a collection matter. Ask who signs the Form 2848.
• Verify the credential at the source: the IRS for an EA, the state board of accountancy for a CPA, the state bar for an attorney.
• The FTC says only the IRS or your state can decide what you qualify for. A firm that decides it for you on the first call is selling.
• Fees belong in writing, before payment, with the refund terms spelled out.
• Every one of these checks is public. None requires the firm's cooperation.

The seven checks

1. Find the BBB profile and read the complaints, not the grade

The Better Business Bureau profile is the quickest public record of how a firm behaves after it has been paid. Search the firm's legal name and its trade name both, because some firms operate under several. The grade matters less than the complaint text: read what clients say went wrong and whether the firm's responses answer the point or recite a script. A firm with no profile at all, or one that was opened last year, is telling you something too.

2. Ask who signs your Form 2848

Form 2848 is the IRS power of attorney. It is the document that lets a person, not a company, speak to the IRS on your behalf. The IRS explains that enrolled agents, certified public accountants and attorneys have unlimited representation rights before it, covering audits, payment or collection issues, and appeals.

Preparers without one of those credentials have limited rights at most, and someone holding only a PTIN has no authority to represent you at all (IRS, Understanding tax return preparer credentials). So the question is simple: who, by name and credential, will be on the 2848? A firm that cannot answer before you sign has told you how it works.

3. Verify the credential at the source

Do not take the website's word for it. For an enrolled agent, the IRS Office of Enrollment answers status requests through its contact form, with a stated policy of replying within 72 hours (IRS, Verify the status of an enrolled agent), and the IRS directory of credentialed preparers lists EAs, CPAs and attorneys who hold a PTIN. For a CPA, the state board of accountancy that licensed them (in California, the California Board of Accountancy) runs a public license lookup. For an attorney, the state bar does the same. Each takes a few minutes.

4. Get the fee agreement in writing before you pay anything

The agreement should state the investigation fee, what it covers, how the resolution fee is set, whether unfiled returns and state work are inside or outside the quote, whether any monthly charge exists, and the refund terms in plain words. If a number is only ever spoken, assume it will move.

5. Listen for an outcome promised before anyone has read your transcripts

No firm can know whether you qualify for an offer in compromise, penalty relief or hardship status until it has your IRS account transcripts and your financial picture. The FTC puts it plainly: only the IRS or your state can decide what you qualify for, and most taxpayers are unlikely to qualify for the programs these companies advertise (FTC, Tax relief companies). A sales call that ends with a result is a sales call.

6. Run the FTC's warning signs

The FTC's consumer page on tax relief companies lists the patterns it sees in complaints: a whole fee demanded up front, pricey monthly maintenance fees that run for months or years, claims like "our clients paid only 10% of their debt", and firms that never send the paperwork to the IRS at all. It also tells consumers they can work out a payment plan with the IRS directly, contact a Low Income Taxpayer Clinic, or call the Taxpayer Advocate Service, and that is good advice for anyone whose case is simple.

7. Confirm a real address and real people

An office you could walk into, named staff with verifiable credentials, and a founding date you can check against a state business filing. Firms that exist only as a phone number and a landing page are the ones that disappear when the complaints start.

The FTC warning signs, and what legitimate practice looks like instead

When you do not need a firm at all

If you owe $50,000 or less, every return is filed, and you can afford a monthly payment, the IRS Online Payment Agreement tool sets up a plan in minutes with a $29 fee for direct debit, and no firm will do it better. The checks above are for the cases where the balance is larger, returns are missing, a levy is already running, or a state agency is involved as well. Our page on tax relief firms, CPAs, attorneys and doing it yourself sorts out which kind of help fits which case.

Checking a tax relief company: common questions

How do I know if a tax relief company is legitimate?

Run seven public checks: find its BBB profile and read the complaints, ask who will sign your Form 2848, verify that person's credential with the IRS, the state board of accountancy or the state bar, get every fee in writing before paying, refuse any outcome promised before your transcripts are read, compare the firm against the FTC's warning signs, and confirm a real address and named staff. None of these needs the firm's cooperation.

What is Form 2848 and why does it matter?

Form 2848 is the IRS power of attorney. It names a specific person, not a company, who may speak to the IRS for you. The IRS says only enrolled agents, CPAs and attorneys have unlimited representation rights covering collection matters and appeals, so the name on that form tells you whether the firm can do the work it is selling.

How do I verify an enrolled agent?

Ask the IRS. The IRS Office of Enrollment answers enrolled agent status requests through its contact form and states a policy of replying within 72 hours. The IRS directory of federal tax return preparers with credentials also lists enrolled agents, CPAs and attorneys who hold a PTIN. For a CPA, use the state board of accountancy license lookup; for an attorney, the state bar.

What are the FTC's warning signs for tax relief companies?

The FTC lists firms that demand the whole fee up front, charge monthly maintenance fees that run for months or years, claim most people qualify or advertise results like paying only 10% of the debt, and in some cases never send the paperwork to the IRS at all. The FTC's rule of thumb is that only the IRS or your state can decide what you qualify for.

Should I just deal with the IRS myself?

Often, yes. If you owe $50,000 or less, every return is filed and you can afford a monthly payment, the IRS Online Payment Agreement tool approves a plan immediately. Help earns its fee when returns are missing, a levy or garnishment is already running, the balance is large enough to need a financial statement, or a state agency is involved too.

Is Clarity Tax Relief legit?

Yes. Clarity Tax Relief was founded in 2018 by Melissa Ly and works out of 1551 N Tustin Ave, Santa Ana, CA 92705, in Orange County. It is BBB accredited with an A+ rating, holds a 5.0 rating on Google and a 4.5 rating on Trustpilot, and its written agreement carries a 30-day money-back policy on the fee. Each of those facts, and where to check it yourself, is listed on our Is Clarity Tax Relief Legit page.

Related: how to verify Clarity · tax relief companies compared · our complaint record · published pricing

Clarity Tax Relief is at 1551 N Tustin Ave, Santa Ana, CA 92705. Call (888) 825-7779 for a free, confidential case review. We are not affiliated with the IRS or any government agency, and individual results vary based on facts and circumstances. Nothing on this page is a promise of any outcome.