When you have unpaid tax debt, it’s helpful to take a breath and remember that you have options. Tax resolution, which may include penalty abatement, a payment plan, or settlement, can provide relief when you owe money to the IRS.
Professional tax resolution services help people manage their overwhelming tax debt. IRS tax resolution is a legitimate way to address unpaid tax bills, but it’s important to work with a reputable company.
Let’s take a closer look at how tax resolution works, and where to find the best tax resolution companies.
Table of Contents
What is tax resolution?
Tax resolution, also called tax relief, describes a range of services designed to help resolve tax problems. Tax resolution companies help individual taxpayers and businesses sort out tax issues with the IRS and with state tax agencies.
IRS tax resolution takes different forms. The type of help you seek can depend on the specifics of your situation. Here are some of the most commonly used tax resolution services to help you get out of tax debt.
Offer in Compromise
An Offer in Compromise (OIC) allows you to settle IRS tax debt for less than what you owe. The OIC program is designed for taxpayers who can’t pay their tax bill in full. The IRS considers your ability to pay, income, expenses, and assets to determine whether you qualify for an Offer in Compromise.
Installment agreement
An installment agreement is a payment plan you arrange with the IRS to repay what you owe in full through a series of monthly installments. Installment agreements don’t eliminate penalties and interest, but they can prevent the IRS from taking collection actions against you. The two payment options are:
- Short-term payment plan with full payment due within 180 days.
- Long-term payment plan that gives you up to 10 years to pay what you owe.
Installment agreements and Offers in Compromise are part of the IRS Fresh Start Program, which aims to help taxpayers who are struggling with tax debt.
Penalty abatement
Penalty abatement can offer relief from IRS tax penalties if you have an unpaid tax bill. You may be eligible for a first-time penalty abatement if you failed to file and/or failed to pay, and you’ve never incurred a tax penalty before. You also need to have a good tax history of filing your returns on time in previous years.
Currently not collectible
Currently not collectible status means you can’t pay anything toward your tax debt at this time. It doesn’t reduce or eliminate your tax debt, but it gives you a break from IRS collection actions. Penalties and interest will still accrue while your account is marked as currently not collectible.
Innocent spouse relief
Innocent spouse relief is designed for married couples who file joint returns. If your spouse filed your return with errors that result in you owing taxes, but you didn’t know that, you could be eligible for innocent spouse relief. If you qualify, you won’t be responsible for any additional taxes, penalties, or interest.
Lien release
The IRS can put a lien on your property if you fail to pay a notice for past due tax debt. A lien doesn’t mean your property is seized, but it prevents you from selling it without paying what you owe to the government.
Paying your tax bill is the most straightforward way to release a lien, but if you can’t do that, you have other options. You may be able to request a discharge of property, subordination, or withdrawal, depending on your situation.
Tax levy release
A tax levy allows the IRS to seize your property to satisfy tax debts. If the IRS imposes a levy for unpaid tax debt, you could be subject to:
- Wage garnishments
- Bank account garnishments
- Seizure of personal property, like homes or vehicles
Tax levy release is a type of back tax help that can get a levy lifted if imposing it would cause you an undue financial hardship. A tax resolution company could help you request a levy release on the basis of hardship, or if removing the levy would allow you to pay your taxes.
Stop wage garnishment
The IRS can garnish your wages to collect tax debts. There are limits on how much the government can take, but a garnishment order could shrink your paychecks for an extended period.
Tax resolution companies can advise you on options to stop wage garnishment, which might include paying the bill in full, setting up a payment plan, requesting an OIC, applying for currently not collectible status, or filing bankruptcy.
Other tax resolution services
A reputable tax resolution company can help in other ways. For example, if you have unfiled returns, you can get assistance with filing them. You can also get representation for an audit if the IRS decides to take a closer look at your tax records.
One of the biggest considerations in tax resolution is its impact on cash flow. The goal should be a payment plan that fits within your existing net income, even if that means temporarily pausing saving.
If resolving tax debt forces you to rely on credit cards or personal loans, it can create bigger long-term problems and keep you stuck in a cycle of instability. Sustainable cash flow matters more than aggressive repayment.
Best tax resolution companies
Here are the tax relief companies our team has identified as the most reputable. Keep reading for lists of the specific services each company offers (and those it doesn’t).
Services Anthem Tax Services offers
Best Money-Back Guarantee
Services it offers
Anthem Tax Services can help you with the following:
- Audit representation
- Currently not collectible
- Penalty abatement
- Installment agreements
- Tax levy release
- Offer in Compromise
- Stop wage garnishment
- Tax lien removal
- Unfiled tax returns
Services it doesn’t offer
- Innocent spouse relief
What else to know
- Money-back guarantee if you don’t save money or rework your payments
- Specializes in both individual and business tax debt nationwide
- Employs a team of enrolled agents, attorneys, and case managers
- Charges a fee of $250 to begin discovery
- Must have at least $10,000 in tax debt
Services Larson Tax Relief offers
Best Initial Investigation
Services it offers
Larson Tax offers help with:
- Stop wage garnishment
- Unfiled tax returns
- Lien removal
- Levy release
- Penalty abatement
- Audit representation
- Offer in Compromise
- Installment agreements
- Currently not collectible
- Innocent spouse relief
Services it doesn’t offer
- Specialized tax services
What else to know
- Free, no-obligation consultation
- 15-day money-back guarantee if you’re unhappy with services received
- Specializes in both individual and business federal and state tax debt
- Minimum of $15,000 in tax debt is typically required to qualify
- Fees are not disclosed online; must call for a quote
Services Alleviate Tax offers
Best Lowest-Price Guarantee
Services it offers
Alleviate Tax offers:
- Stop wage garnishment
- Offer in Compromise
- Installment agreements
- Penalty abatement
- Unfiled returns
- Levy release
- Currently not collectible
- Innocent spouse relief
Services it doesn’t offer
- State tax relief help
What else to know
- Free initial consultation with one of 150+ dedicated tax professionals
- Two-phase process ensures you get the most suitable tax relief solution
- Enjoy a 30-day money-back guarantee and a lowest-price guarantee
- Phase 1 requires an upfront fee, which is typically less than $500
- Minimum of $20,000 in tax debt is generally required
Services TaxRise offers
Great Offer in Compromise Support
Services it offers
TaxRise offers:
- Offer in Compromise
- Currently not collectible
- Installment agreements
- Stop wage garnishment
- Lien release
- Levy release
- Passport revocation
- Unfiled returns
- Innocent spouse relief
- Audit representation
Services it doesn’t offer
- Tax preparation
- Bankruptcy help
What else to know
- Employs CPAs and tax attorneys to offer expert help with tax debt
- Broad range of services, including some services other tax resolution companies don’t offer
- Help with tax debt is available in all 50 states
- Fees paid for initial investigations are non-refundable
- Minimum $10,000 in tax debt is generally required to qualify
Services BC Tax offers
Great for Transparent Expectations
Services it offers
BC Tax offers:
- Penalty abatement
- Installment agreement
- Stop wage garnishment
- Offer in Compromise
- Audit representation
- Currently not collectible
- Installment agreement
- Lien removal
- Levy release
- Innocent spouse relief
- Tax disputes
- Unfiled returns
- Tax planning and preparation
Services it doesn’t offer
- Bankruptcy help
What else to know
- 15-day money-back guarantee if you’re unhappy with services received
- Tax relief is available in all 50 states
- Broad range of tax services offered
- Fees are not readily available online
- Minimum of $20,000 in tax debt is generally required
What tax resolution services can do
Tax resolution services work with people to help them resolve situations where they owe money to the IRS for one reason or another. Depending on your situation, a tax resolution company could help you to:
- Enroll in a payment plan for past due tax bills
- Settle tax debts for less than what you owe
- Get penalties waived or reduced
- Remove liens or levies against your property or assets
- File back tax returns
- Stop wage garnishments
- Pause collection actions
What’s important to know is that these are all things you can do yourself. The IRS website has all the forms you need to apply for different types of tax relief, along with instructions on how to complete them. You can apply for certain programs, like installment agreements, online.
The benefit of working with a tax resolution company is that you have an expert on your side who can guide you toward the right solution. They can also handle communications with the IRS, which can be nerve-wracking. You’ll pay a fee for professional tax relief, but it may be worth it if you’d rather not deal with the IRS alone.
When to consider tax resolution services
Tax resolution makes sense in some situations more than others. Here’s a quick comparison of when it may be right for you, and when to reconsider.
| Consider tax resolution services if you… | Try a DIY approach if you… |
|---|---|
| Owe at least $10,000 in tax debt | Owe less than $10,000 in tax debt |
| Are experiencing a significant financial hardship that makes it difficult to pay what you owe | Missed the payment deadline due to a simple mistake, rather than hardship |
| Received a notice of levy that puts your wages, bank accounts, or property at risk | Received a first notice of failure to file or pay, and can pay the amount due within 21 days |
| Have multiple years of unfiled tax returns to submit, or want to negotiate an Offer in Compromise | Can afford the payments required for a short-term payment plan, or a long-term plan if you owe a larger amount |
| Feel overwhelmed at the thought of having to deal with the IRS or state tax authorities | Feel comfortable managing your tax situation yourself |
Hiring a tax resolution professional usually makes sense when the tax balance is large, penalties and interest have piled up, or the issue involves complex matters like disallowed deductions, especially for business owners.
The IRS may challenge legitimate deductions, and experienced representation can make a meaningful difference.
For smaller or purely procedural issues, such as setting up a basic payment plan, many taxpayers can work directly with the IRS and avoid added costs.
How to compare IRS tax resolution services
If you think you could benefit from tax relief, choosing the right tax resolution company to work with is a must. Here are a few factors to keep in mind as you search for tax resolution services near you.
- Services. Some tax relief companies offer a broader range of help than others. If you don’t see a specific type of help listed on a company’s website, reach out to confirm whether it offers the service.
- Eligibility. You’ll generally need a minimum amount of tax debt to get help. The threshold is higher at some tax resolution companies than others, so consider how much you’ll need to owe to qualify.
- Pricing. The best fee structure for tax relief is transparent and uncomplicated. That being said, every company is different, so consider what you might need up front and for ongoing help.
- Guarantees. No tax relief company can guarantee a specific result, but many offer satisfaction guarantees. Look for companies that offer a money-back or satisfaction guarantee if you need reassurance. (Anthem Tax Services offers an excellent money-back guarantee.)
- Support. Tax debt can be stressful, and you want to know that any tax resolution company you work with is there for you when you need them. Check customer support availability and ask your representative about how often you’ll communicate.
Tax resolution isn’t one-size-fits-all, and that’s a good thing, since every taxpayer’s situation is different. Learn more about the best tax relief companies and how they could help you resolve your tax debts.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Internal Revenue Service, Offer in Compromise
- Internal Revenue Service, Installment Agreements
- Internal Revenue Service, Administrative Penalty Relief
- Internal Revenue Service, Temporarily Delay the Collection Process
- Internal Revenue Service, Innocent Spouse Relief
- Internal Revenue Service, Understanding a Federal Tax Lien
- Internal Revenue Service, How Do I Get a Levy Released?
- Anthem Tax Services, Tax Services
- Larson Tax Relief, Tax Relief
- Alleviate Tax, Resolve Your Tax Debt
- TaxRise, Let’s Resolve Your Tax Issues
- BC Tax, Homepage
About our contributors
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Written by Rebecca Lake, CEPF®Rebecca Lake is a certified educator in personal finance (CEPF®) and freelance writer specializing in finance.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.
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Reviewed by Rand Millwood, CFP®Rand Millwood, CFP®, CIMA®, AIF®, is a partner at Guardian Wealth Partners in Raleigh, North Carolina. His firm assists clients of all ages and areas of life (with a strong background in the medical and legal fields) in planning, investing, and preparing for retirement and other financial goals.