Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Tax Relief Tax Resolution Services Updated Feb 28, 2024 8-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Aly Yale Written by Aly Yale Expertise: Home equity, mortgages, real estate Aly Yale is a freelance writer with more than a decade of experience covering real estate and personal finance topics. Learn more about Aly Yale Reviewed by Andrew Steger, CFP® Reviewed by Andrew Steger, CFP® Expertise: Holistic financial planning, nonprofit endowments, tax planning, investment management, retirement planning, trust administration, estate planning, budgeting, cash flow analysis, business succession Andrew Steger, CFP®, owns Generational Wealth Planning LLC, which provides financial planning and consulting services. Andrew assists families, executives, and business owners with planning and executing successful futures. Learn more about Andrew Steger, CFP® 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. Table of Contents Skip to Section Audit representationCurrently not collectibleInnocent spouse reliefInstallment agreementsTax levy releaseOffer in compromiseStop wage garnishmentTax lien removalUnfiled 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. You can even appoint the tax professional as your power of attorney (POA). This differs from naming a POA of your estate, which allows complete control of your finances—a POA in a tax audit context means the tax professional controls the audit process from start to finish, alleviating much of the stress and hassle that typically comes with one. The following companies offer this service: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesCommunity Tax888-519-2184YesTax Hardship Center844-332-3001YesOptima Tax Relief800-536-0734Yes 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: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesCommunity Tax888-519-2184YesTax Hardship Center844-332-3001YesOptima Tax Relief800-536-0734Yes 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: CompanyPhone numberFree consultationCommunity Tax888-519-2184YesOptima Tax Relief800-536-0734YesPrecision Tax Relief855-212-5900Yes 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: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesCommunity Tax888-519-2184YesTax Hardship Center844-332-3001YesLarson Tax Relief888-589-0955YesOptima Tax Relief800-536-0734YesPrecision Tax Relief855-212-5900Yes 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: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesCommunity Tax888-519-2184YesTax Hardship Center844-332-3001YesLarson Tax Relief888-589-0955YesOptima Tax Relief800-536-0734YesPrecision Tax Relief855-212-5900Yes 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: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesTax Hardship Center844-332-3001YesLarson Tax Relief888-589-0955YesOptima Tax Relief800-536-0734YesPrecision Tax Relief855-212-5900Yes 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: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesCommunity Tax888-519-2184YesTax Hardship Center844-332-3001YesLarson Tax Relief888-589-0955YesOptima Tax Relief800-536-0734YesPrecision Tax Relief855-212-5900Yes 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: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesCommunity Tax888-519-2184YesTax Hardship Center844-332-3001YesLarson Tax Relief888-589-0955YesOptima Tax Relief800-536-0734YesPrecision Tax Relief855-212-5900Yes 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: CompanyPhone numberFree consultationAnthem Tax Services818-797-7234YesCommunity Tax888-519-2184YesTax Hardship Center844-332-3001YesLarson Tax Relief888-589-0955YesOptima Tax Relief800-536-0734YesPrecision Tax Relief855-212-5900Yes Ask the expert Andrew Steger CFP® Tax issues can range from small errors, such as transposing numbers or entering information incorrectly, to more significant, such as underpaying estimated taxes, misreported or forgotten income, or not properly separating or reporting personal and business income or expenses. One issue that is becoming more and more frequent is compromised Social Security numbers. Take all precautions necessary to protect your data and personal information and this will make filing and getting rebates faster and easier. Remember, the IRS will never call you—it will always mail you a letter for any correspondence. 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. Ask the expert Andrew Steger CFP® Hiring an expert to help with tax issues is a big decision because it comes on the heels of a very anxiety-inducing event. An easy place to start is to ask your personal tax preparer if they provide any audit protection services. They will be the most familiar with your tax situation. Secondly, weigh those options and costs against the services provided by a third party. 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. Ask the expert Andrew Steger CFP® Delaying or avoiding responding to an IRS inquiry is not a good idea. It is best practice to respond promptly and rectify the issues as soon as possible. If you are the subject of an IRS audit, all it takes is one mistake to be found, and there is no limit to the number of years an auditor can go back to see if other mistakes can be found. This can be very time-consuming and stressful. It is best to respond and seek help if necessary in a prudent manner. 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.