Updated
Apr 05, 2023 Unpaid tax debt can mean serious trouble. It can lead the IRS to garnish your wages, file liens against your property, and much more. It also comes with hefty penalties and interest.
Fortunately, tax relief companies may be able to help. If you’ve found yourself dealing with soaring tax debt, an audit, or another tax problem, these tax resolution services may be an option.
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- Audit representation
- Currently not collectible
- Innocent spouse relief
- Installment agreements
- Tax levy release
- Offer in compromise
- Stop wage garnishment
- Tax lien removal
- Unfiled tax returns
Audit representation
If the IRS has opted to audit your tax returns, seeking audit representation could help. With this service, a tax professional works on your behalf to gather financial documentation, meet with the IRS auditors assigned to your case, and defend you in the eyes of the agency.
If you appoint them as your power of attorney, they can manage the entire audit process from start to finish, alleviating much of the stress and hassle that typically comes with one.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Community Tax | 888-519-2184 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
Currently not collectible
Currently not collectible is a tax status available for people who don’t have the means to cover their tax debts. To qualify, your wages — as well as your assets — cannot be enough to cover both your living expenses and your taxes simultaneously.
A tax resolution service can help you gather the necessary documentation and file for currently not collectible status. With years of experience with taxes, they may be able to help improve your chances of success, too.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Community Tax | 888-519-2184 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
Innocent spouse relief
If you’re dealing with your spouse or former spouse’s back taxes, you might have a resolution through what’s called innocent spouse relief. Your tax professional will work to ensure only the at-fault spouse is held responsible for your current tax problems. This form of relief requires a Form 8857 from the IRS, as well as various financial documentation.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Community Tax | 888-519-2184 | Yes |
| Optima Tax Relief | Not available | Yes |
Installment agreements
With an installment agreement, you get the chance to spread your tax debts out over time — usually across a few months or years. A payment plan can also help you avoid additional penalties, like wage garnishment, tax levies, and more.
There are various types of installment agreements, and a tax resolution professional can help you determine which is best for your specific scenario and help you file for it.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Community Tax | 888-519-2184 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
Tax levy release
A tax levy is when the IRS lays claim to one of your assets (a house, car, etc.) in an attempt to recoup its losses. Though paying the debt in full can help stop tax levies and seizures, there are other strategies that tax professionals can pursue as well, including setting up installment agreements, making offers in compromise, and more. A tax resolution pro can also negotiate with IRS agents directly to release the levy in certain situations.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Community Tax | 888-519-2184 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
Offer in compromise
With an offer in compromise, you can settle your tax debt with less money than you owe. The amount you’ll pay depends on your assets and income, but offering the right amount is critical to IRS approval.
That’s where a tax resolution professional can help. A professional can ensure you apply correctly, offer an appropriate amount, and maximize the chances that your offer gets approved.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
Stop wage garnishment
The IRS will often garnish wages — meaning withhold a portion of your paycheck — to collect on an overdue tax debt. Depending on your income, this can have grave consequences and make it challenging to afford day-to-day living expenses.
In some cases, a tax resolution professional may be able to stop this garnishment using an installment plan or another method, ensuring you retain your paycheck in full.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Community Tax | 888-519-2184 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
Tax lien removal
Tax liens come before tax levies. It’s when the IRS initially announces its intent to use an asset to collect on the tax debt, but it’s not when the asset is sold or seized.
Fortunately, tax resolution professionals have several strategies for appealing liens well before they’ve gone to that next step. This appeal might include showing that the IRS made a processing or filing error, paying all or some of the debt, or filing for other options like the Fresh Start initiative.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Community Tax | 888-519-2184 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
Unfiled tax returns
Often, the first step to resolving overdue taxes is to address any previous, unfiled returns. Most tax resolution professionals also offer tax planning and preparation services, and they can usually help with this, too.
To start, they would help you file the tax returns you’ve failed to submit in the past, making you current on all returns. They could then proceed with assisting with any other tax issues you might be dealing with.
The following companies offer this service:
| Company | Phone number | Free consultation |
| Anthem Tax Services | 818-797-7234 | Yes |
| Community Tax | 888-519-2184 | Yes |
| Tax Hardship Center | 844-332-3001 | Yes |
| Optima Tax Relief | Not available | Yes |
How much do tax resolution services cost?
Most tax relief companies offer free consultations. This consultation allows you to get a feel for the company and what they may be able to do for you.
After that, if you decide to move forward, you’ll pay for an initial investigation and then again for any resolution services. Though the initial fee is typically a flat rate, resolution services usually vary based on the advised strategy and the tax debt’s total amount.
There’s no hard-and-fast average for how much these services cost. According to our research, the initial fee will be somewhere between $250 and $500. The Tax Hardship Center says its clients pay around $3,750, on average, for the entire service.
To learn more, you can check out our guide to how much tax relief services cost.
How do I get started working with a tax relief company?
Working with a tax relief company starts with an initial consultation. You’ll discuss the tax problems you’re dealing with, and the tax resolution professional will work to understand the issues at hand.
The team will then investigate your tax issue by first contacting the IRS to get a full record of your tax account, and then, after reviewing, will get in touch to discuss resolution options and fees.
Finally, your tax relief company will get to work resolving your back taxes. This might include gathering the necessary financial documentation, working or meeting with the IRS, and filling out any required forms.
Compare your options
Before you get started, make sure you compare your tax relief options. Fees, services, and experience all vary from one provider to the next. It’s important you consider several companies to ensure you’re getting the best one. Check out our guide to the best tax relief companies to get started.