Predict financial distress and pay attention to the level of liquidity to assess the financial condition of organizations and businesses. An appropriate competitive strategy can lead to a competitive advantage, and a competitive strategy must be developed to achieve a competitive advantage. Choosing the right competitive strategy is a complex and even risky task. Shareholders are not as concerned about the consequences of future tax cuts as they are about the consequences, including paying more taxes in the future, tax penalties, compromising the company's reputation, and, most importantly, the tax risk posed to the government. Therefore, the purpose of this study is to investigate whether tax risk affects the company's strategy in times of financial distress or not? The statistical population of companies listed on the Tehran Stock Exchange between 1394 to 1398 and using the information of 98 companies and multivariate linear regression method, the hypothesis was tested. The test results showed that tax risk has a significant effect on the company's strategy during financial distress. .