There is no active class action, government enforcement case, or open settlement fund tied to a TaxRise lawsuit as of mid-2026. Two federal cases have been filed against the Irvine, California tax resolution company, and both ended without any public consumer compensation. If you believe TaxRise harmed you, your options are individual ones: a private lawsuit or arbitration, small claims court, or complaints to regulators.
The Two Federal Cases and How They Ended
Both federal suits were filed in the Central District of California, and both are closed.
Micah Watkins v. Tax Rise, Inc. (Case No. 8:20-cv-00029) was filed on January 7, 2020, and docketed as a class action. On July 2, 2021, after the plaintiff filed a notice of settlement, the court dismissed the case “in its entirety without prejudice,” with a 45-day window to reopen if the settlement fell through.1CourtListener. Micah Watkins v. Tax Rise, Inc., 8:20-cv-00029 No settlement terms, dollar amount, or class relief were made public.2CourtListener. Micah Watkins v. Tax Rise, Inc. — FJC Integrated Database Because the matter resolved privately, there is no claims process attached to it.
Homayoun Sadr-Arhami v. Tax Rise Inc. et al. (Case No. 2:20-cv-06862) was filed on July 30, 2020, alleging violations of the Telephone Consumer Protection Act over unsolicited text messages.3Bankrupt.com. Class Action Reporter It was terminated in May 2021 by stipulated dismissal, meaning the parties agreed to end the litigation.2CourtListener. Micah Watkins v. Tax Rise, Inc. — FJC Integrated Database Again, no public settlement fund.
No Class Action to Join and No Settlement Checks
No certified nationwide class action is pending against TaxRise, and neither the Federal Trade Commission nor the Consumer Financial Protection Bureau has brought an enforcement case against the company. TaxRise does not appear on the CFPB’s enforcement list.4Consumer Financial Protection Bureau. Enforcement Actions No court-approved consumer redress fund exists.
Websites or messages advertising TaxRise settlement checks or a claims form should be treated with skepticism. There is nothing to claim.
What Consumers Are Alleging
TaxRise’s Better Business Bureau profile shows 647 complaints filed over the past three years, with 259 closed in the most recent 12 months.5Better Business Bureau. Tax Rise Complaints The company holds BBB accreditation and an A+ rating.6Better Business Bureau. Tax Rise BBB Profile Several patterns recur in the complaints themselves:
- Promises that tax debts could be settled for a fraction of what was owed, followed by little or no progress; some consumers reported that returns TaxRise agreed to prepare were never filed, or contained errors that triggered IRS levies or penalties.7Better Business Bureau. Tax Rise Complaints
- Fees ranging from $498 to $10,000, with initial “investigation” fees of $375 to $500 and undisclosed resolution-phase pricing. Some consumers said they paid thousands for what amounted to a basic IRS installment plan.8Finder. TaxRise Tax Relief Review
- Frequent case-manager turnover, long gaps in communication, and difficulty reaching anyone after initial payments were collected.9Better Business Bureau. Tax Rise Complaints
- Worsened outcomes. One consumer reported receiving a federal tax lien after being told to stop payments on an existing installment plan. Another said a TaxRise filing triggered an automatic bank levy. A third described 30% wage garnishment after the company failed to contact their state revenue office.5Better Business Bureau. Tax Rise Complaints
- Refund friction. Consumers seeking cancellations described being routed through an “escalation” or quality-assurance process, and some reported being warned that filing a BBB complaint or threatening legal action would void remaining discounts or fee forgiveness.7Better Business Bureau. Tax Rise Complaints
TaxRise’s standard reply thanks the client and says a quality assurance or resolution team member will review the account. Refunds and accommodations have been reached in some cases, though complainants often dispute whether the resolution was adequate.10Better Business Bureau. Tax Rise Complaints
A Regulatory Action Against a TaxRise Affiliate
TaxRise itself has not been sanctioned by regulators, but a company owned by its founder has been. In February 2021, the California Department of Financial Protection and Innovation cited Optima Advocates, Inc., finding it had acted as an unlicensed intermediary for student loan borrowers, collected illegal advance fees, and engaged in deceptive practices. Optima Advocates and its owner, TaxRise founder Essam Abdullah, did not contest the findings and agreed to pay $47,500 in penalties and issue refunds to affected California consumers.11California DFPI. Administrative Action — Optima Advocates Inc. Settlement Agreement
The settlement order identified Debt Rise, Bridgeley (Bridgley), Price Holdings, Allevely, and Fidelity Tax Relief as affiliated entities owned or controlled by Abdullah, and required all of them to stop offering the student-loan debt-relief services described in the citation.11California DFPI. Administrative Action — Optima Advocates Inc. Settlement Agreement The order did not restrict TaxRise’s tax resolution business, and the company continues to operate as of mid-2026.
What You Can Do If You Were Harmed
Because no collective case is open, remedies are individual. Options include:
- Filing a private lawsuit or arbitration claim against TaxRise. Check your service agreement, which may require arbitration.
- Pursuing a case in small claims court if your loss falls within your state’s dollar limit.
- Submitting complaints to the Federal Trade Commission, the Consumer Financial Protection Bureau, and your state attorney general. California residents can also complain to the Department of Financial Protection and Innovation.
- Filing a BBB complaint, which has produced refunds for some consumers.
If a nationwide class action is later filed and certified, or a regulator opens a case with a consumer redress component, that would create a formal way to seek money back. None of that exists today.