ax-relief company TaxRise Inc. faces an ongoing class-action lawsuit that challenges how the firm contacted potential clients and how its outreach aligned with federal consumer-protection law. The complaint centers on cellphone calls and text messages that plaintiff Micah Watkins said arrived without permission. The suit relies on the Telephone Consumer Protection Act, a statute that limits how companies can communicate with individuals when automated or repeated contact is involved. The row grew out of interactions that Watkins described as intrusive, persistent, and not requested.
Many households struggling with IRS pressure look for help outside traditional accounting firms. That search drives thousands toward tax-relief companies with heavy advertising across television, radio, and social media. Those companies compete in a crowded space where reputation changes quickly. The TaxRise lawsuit sits inside that landscape, connecting individual allegations to a broader public question: how far tax-relief firms can go when chasing new customers and how aggressively they can message people who never signed up.
The case opened in federal court in early 2020. The record has stayed active without visible evidence of final judgment or settlement. That extended timeline adds weight to the issue because continued BBB complaints show that concerns around service quality, refund delays, and communication problems have not disappeared. The lawsuit’s narrow focus on telemarketing law does not cover every complaint against the company, yet public records show a steady flow of similar service disputes long after the filing date.
How the Lawsuit Started
Micah Watkins filed the class-action complaint on January 7, 2020 in the U.S. District Court for the Central District of California, case number 8:2020cv00029. The complaint outlined phone calls and text messages allegedly made by TaxRise without prior express consent. That allegation forms the backbone of a TCPA case, which hinges less on whether a company’s services work and more on whether outreach complied with federal rules.
The complaint pointed to call volume, timing, and patterns that Watkins said did not match any authorization he had given. The suit framed the communication as not only unwanted but also part of a pattern used to fuel TaxRise’s sales funnel. That framing pushed the issue beyond an isolated misunderstanding and toward what the plaintiff described as an ongoing marketing strategy.
Background of the Case
TaxRise markets tax-relief programs designed for people facing IRS debt, wage garnishment, levies, or long-delayed tax filings. Public descriptions from the company show a two-stage approach: a review phase and a resolution phase. The review stage involves gathering IRS transcripts and collecting financial history. The resolution stage involves negotiating with the IRS for programs like installment agreements, penalty abatements, or offers in compromise.
BBB complaint logs reveal a mixed record. The company holds an A+ rating, yet the BBB lists hundreds of consumer complaints. Many describe paying thousands in fees — sometimes financed through third-party lenders — followed by periods of minimal communication or stalled progress. Others describe confusion about what portion of their fee is paid for investigation work versus actual IRS resolution efforts.
Those public comments do not form part of the lawsuit’s legal claims, yet they help explain why the lawsuit gained visibility. Consumers often report difficulty confirming whether IRS documents were filed, whether case files were updated, or whether tax returns were prepared after payments were collected. Reports stretch across multiple years, including complaints filed as recently as 2025.
Key Allegations
Watkins alleged that TaxRise “negligently and/or willfully” sent repeated calls and texts to his cellphone without valid consent. The TCPA requires prior express consent for such communications, and the complaint claims that TaxRise did not have it.
Several consumers posting online — outside the lawsuit — describe experiences aligned with high-pressure outreach. One Reddit post recounts an upfront fee of more than eight thousand dollars for tax investigation and resolution, and claims that no offer in compromise was ever filed. That story also describes a stall in communication after payment.
BBB complainants echo similar themes. Some report extended delays. Others say they received refunds only after months of disputes. Several claim they never received proof that any filings were made with the IRS despite paying for preparation and representation.
TaxRise publicly states that it uses licensed tax professionals and follows a structured review-and-resolution system. The company presents its process as transparent and organized, with case updates provided throughout the file.
Timeline of the Tax Rise Lawsuit Case
Early Complaints and Consumer Signals
Public BBB filings show that consumer frustration with TaxRise did not slow after the lawsuit began. Complaints filed in 2024 and 2025 describe customers paying between $4,000 and $9,000 for tax-relief services and later struggling to confirm whether the IRS had received anything. One complainant from late 2025 said they paid $4,600 and had “no confirmation” that their bill was resolved, despite being told that IRS submissions were pending. Another 2025 complainant said they paid roughly $9,000 yet saw no change in their IRS records while payments toward the financed fee continued.
These complaints, while separate from the lawsuit, show a continuous pattern of consumer confusion. Case notes on the BBB site show clients questioning what work had been completed and why the timeline stretched beyond what they expected.
Company Response
TaxRise responded to some BBB complaints. In one 2025 complaint, the company stated that it had completed the investigation stage and that tax returns were prepared and awaiting the client’s signature. TaxRise wrote that IRS filings could not proceed without signed returns. That message emphasized that a stalled process might occur when clients do not return paperwork.
Some responses indicated that refunds were possible only under certain contractual conditions. Other responses pointed to ongoing case review or pending IRS communication. The tone varied depending on the complaint, but several replies framed the disputes as misunderstandings about the timeline, documents, or required client cooperation.
Court Filings and Legal Steps
Court records show the complaint was filed on January 7, 2020. Service of process reached TaxRise on February 5, 2020, and the court granted an extension for a formal response on February 11, 2020. No public docket entry shows a final order or dismissal.
Nothing in the available records indicates that the lawsuit expanded into additional claims. No amended complaint appears in the public summaries reviewed. The docket reflects early-stage activity typical of a TCPA case but lacks later decisive filings.
Judge Notes or Judicial Signals
No verified public record provides judicial comments or court-issued warnings. No hearing transcripts, judicial remarks, or minute orders with substantive analysis appear in competitor summaries or court data used in this review.
Government or Regulatory Actions
No government enforcement action connected to TaxRise appears in any reviewed source. No FTC complaint, no IRS enforcement notice, and no CFPB action are linked to this case in public reports. The lawsuit remains a private civil action rather than a government-driven case.
Settlement Timeline
No verified public settlement exists. No press release, no court notice, and no filing confirms any negotiated resolution. Consumer-protection cases often settle quietly, but nothing in the reviewed record supports the existence of a settlement here.
Current Status
The case shows no publicly confirmed closure. TaxRise continues operations, continues advertising tax-relief services, and continues receiving BBB complaints as of 2025. That ongoing activity suggests the lawsuit did not halt business or prompt public corporate restructuring.
Additional Case Details
Tax-relief firms compete in a high-pressure marketplace shaped by IRS collection deadlines, government notices, and widespread anxiety among taxpayers. People dealing with garnishment or delinquent filings often fall into stressful situations, which leaves them vulnerable to aggressive marketing. That environment helps explain why a TCPA case against a tax-relief company draws attention even if the lawsuit itself concerns only phone calls and text messages.
Some clients posting online describe financing options that left them carrying new debt unrelated to IRS obligations. Those clients claim they paid for results they never received while monthly loan payments continued. BBB complaints show that confusion about financing, service tiers, and refund rights appears across many entries. These complaints are not part of the lawsuit’s legal claims, yet they reflect real consumer experiences that shape public perception of the company.
Several complainants say they struggled to understand which work counted as “investigation,” which work counted as “resolution,” and why progress appeared stuck. Others say that emails or calls went unanswered during critical points in their IRS timeline. Public sources do not confirm whether these issues affected every client or only some, but the pattern is consistent across multiple years of complaints.
Summary
The Tax Rise lawsuit highlights a narrow but significant issue: whether TaxRise contacted individuals in a manner compliant with the Telephone Consumer Protection Act. The legal question focuses on consent. The wider consumer picture shows ongoing concern about service quality, communication, and timelines. The lawsuit remains unresolved in public records, and TaxRise continues operating while complaints continue accumulating. Anyone seeking tax-relief services should read contracts carefully, track timelines, and confirm every IRS filing directly when possible.
Disclaimer: This article provides general information, not legal advice. If you have any questions about this, please don’t hesitate to contact us.