Freedom Debt Relief Partners with april for Free AI-Powered Tax Filing

SAN MATEO, CA – February 11, 2026 – In a move set to redefine client support in the debt settlement industry, Freedom Debt Relief announced it will now offer free federal and state tax preparation and filing for its clients. The new service is the result of a strategic partnership with april, a rapidly growing financial technology firm specializing in AI-powered, embedded tax solutions.

The initiative makes Freedom Debt Relief the first major debt settlement company to provide such a comprehensive tax service at no cost to its active members. By integrating april's platform, the company aims to alleviate the financial and administrative stress of tax season, a particularly challenging time for individuals already working to manage significant debt.

Easing a Hidden Financial Burden

For the average American taxpayer, filing a standard Form 1040 federal return involves about eight hours of work and costs an estimated $160, according to the IRS. For clients of debt settlement programs, however, the process is often far more complex and costly. A significant, and often overlooked, complication arises from the tax implications of settled debt.

When a creditor agrees to settle a debt for less than the full amount owed, the forgiven portion—known as Cancellation of Debt (COD) income—is generally considered taxable income by the IRS. Creditors issue a Form 1099-C for any forgiven debt over $600, officially notifying both the taxpayer and the IRS. This requires individuals to report the forgiven amount on their tax return, which can increase their tax liability and add a layer of complexity that free versions of popular tax software often don't cover.

This partnership directly confronts that challenge. The april platform is designed to automatically incorporate successfully settled unsecured debt information obtained by Freedom Debt Relief, streamlining a process that could otherwise require expensive professional assistance.

"Tax season can be an added source of stress for people already working hard to regain control of their finances," said Jason Pack, Chief Revenue Officer at Freedom Debt Relief, in a statement. "By providing our clients with free tax prep and filing services, we're helping them simplify tax season and save money as they move forward in their debt-relief journey."

The service not only saves clients the direct cost of tax preparation but also mitigates the risk of errors, audits, and penalties that can result from incorrectly reporting COD income.

A New Era of Integrated Financial Support

This collaboration marks a significant step in the trend of "embedded finance," where specialized technology from fintech firms is integrated directly into the platforms of more traditional financial service providers. Rather than simply referring clients to external resources, Freedom Debt Relief is now embedding a critical financial tool directly into its program.

april has positioned itself as a key player in this space. Its platform is not a standalone application but an API-first infrastructure designed to be white-labeled and integrated into other financial ecosystems, from banking apps to, in this case, debt relief services.

The company’s AI-powered engine promises to significantly cut down on filing time, claiming clients can submit a return in as little as 20 minutes. Features include mass document upload, automatic data pre-filling, and a unified federal and state filing experience.

"While this year marks the 40th anniversary of the IRS e-file system, the e-filing experience has remained largely unchanged and the tax code has become increasingly complex," noted april Co-founder and CEO Ben Borodach. "The april AI-powered tax engine addresses that gap, enabling Freedom Debt Relief's clients to confidently prepare and file their taxes."

The platform also comes with an accuracy guarantee and a maximum refund guarantee, providing further assurance to users navigating an already stressful financial situation.

Redefining the Debt Relief Landscape

By being the first in its sector to offer this integrated service, Freedom Debt Relief is setting a new competitive benchmark. A review of major competitors, such as National Debt Relief, shows that while they provide resources and advice, they typically direct clients to external tax professionals to handle the complexities of settled debt, leaving the cost and administrative burden on the consumer.

This move signals a strategic shift from a singular focus on debt negotiation to a more holistic model of financial support. It complements Freedom Debt Relief's existing suite of client services, which includes a performance guarantee, access to a legal partner network for creditor lawsuits, and a digital dashboard for monitoring progress. The company, which has resolved over $22 billion in debt since 2002, appears to be leveraging technology to solidify its market position and enhance client outcomes.

The strategy is clear: by improving the overall financial stability of its clients, the company increases the likelihood that they will successfully complete their debt settlement programs. This creates a virtuous cycle where better client support leads to better business results.

"Our partnership with april is another way we're delivering real value beyond debt negotiation alone," Pack added. "When clients save money on taxes, they're better positioned to stay on track and see progress sooner."

This initiative could pressure competitors to follow suit, potentially making integrated financial tools like free tax preparation a standard offering in the debt relief industry, rather than a novel differentiator. The move underscores a broader transformation in financial services, where customer value is increasingly defined not by a single core product, but by a comprehensive ecosystem of support tools designed to address the customer's complete financial journey.