Tax resolution helps eligible taxpayers reduce their tax debt and restore peace of mind. Whether you’re seeking tax resolution services, wondering what tax resolution is, or searching for the best tax resolution company, understanding your options is crucial.
Here are four essentials every taxpayer should know about resolving IRS debt:
- How the tax resolution process works.
- When professional help is worth the investment.
- IRS programs that can significantly reduce or pause your tax debt.
- Red flags to avoid when choosing a tax resolution partner.
What Problems Does Tax Resolution Solve?
Tax resolution is the process of addressing outstanding tax liabilities with the IRS. It tackles several problems, including these six key issues:
- Unpaid back taxes
- Unfiled tax returns
- Federal tax liens
- Bank levies
- Wage garnishment
- Ongoing audit disputes
Each situation requires a tailored approach based on your financial circumstances and the specific IRS actions or penalties you’re facing.
How Does Tax Resolution Work?
In general, tax resolution breaks down into three essential components:
- An assessment of your current tax situation
- Applying to the IRS for a tax resolution option
- Ongoing compliance to prevent future problems and penalties
Can I Handle Tax Resolution Myself?
Taxpayers can contact the IRS directly to resolve their own tax issues; however, they may encounter long queues and hold times. It is highly recommended to consult with an experienced tax professional who can handle complex financial matters and find the best possible solution for your case.
Why Hire a Tax Resolution Specialist?
Taxpayers should consider hiring a tax resolution specialist because they are trained professionals knowledgeable in tax relief and can help resolve IRS or state tax issues. Tax laws and the documents required to apply for tax relief can be complex and confusing for those unfamiliar with the process. The right professional can make this process manageable.
Additionally, an Enrolled Agent (EA), a federally licensed tax practitioner authorized by the IRS, is permitted to represent taxpayers in all matters. Relying on EAs, such as through a tax resolution firm, will ensure your case is handled and appropriately represented.
What Do Tax Resolution Companies Do?
A reputable tax resolution firm will be comprised of tax resolution specialists, Enrolled Agents (EA), Certified Public Accountants (CPA), and tax attorneys. They will analyze your financial situation, communicate with the IRS on your behalf, and negotiate payment plans or Offers in Compromise.
Do Tax Resolution Services Really Work?
Yes, when handled by qualified professionals like TaxRise, these services can result in significant savings and stress reduction for eligible taxpayers.
Results may vary on a case-by-case basis, as many factors are taken into consideration. This is why it’s essential to research your options and speak with a tax professional.
When You Need Professional Help
In many cases, it is best to rely on professional tax resolution help, which can be more beneficial than attempting it yourself. Here are some key indicators that you should consult with an expert:
- IRS tax debt exceeding $10,000
- Receiving a Notice of Federal Tax Lien
- Multiple years of unfiled tax returns
- A Revenue Officer is being assigned to your case
- Wage garnishment or bank levy notices
The table below compares four approaches to addressing IRS tax debt in terms of cost, time, and risk.
| Approach | Cost | Time Investment | Risk Level |
|---|---|---|---|
| TaxRise Professional | Transparent fee after free consultation | Low | Lowest (expert guidance) |
| Other Professionals | Moderate fee | Low–Medium | Low–Medium |
| DIY | Low upfront | Highest | High (mistakes can be costly) |
| No Action | Increased penalties and interest | None initially | Very High (IRS enforcement) |
The IRS Taxpayer Bill of Rights states: “Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS.” This protection ensures you can have qualified professionals handle complex negotiations while you focus on your daily responsibilities.
What Are the Biggest Tax Relief Myths in 2025?
Several misconceptions prevent taxpayers from seeking legitimate help. Here are five costly myths and the facts.
| Myth | Reality |
|---|---|
| "All tax relief ads are scams." | While scams exist, reputable firms like TaxRise are licensed professionals who adhere to IRS Circular 230 standards and maintain transparent fee structures, demonstrating genuine empathy for taxpayers' situations. |
| "I can't afford professional help." | TaxRise offers free consultations and flexible payment plans. Successful clients have saved significantly more than our fees cost through strategic IRS negotiation. |
| "Tax problems resolve themselves over time." | Interest and penalties compound daily if the tax debt is not paid off, and the IRS has extensive collection powers. This is where tax experts can help and recommend the best solution before the situation worsens. |
| "Once I set up a payment plan, I’m safe forever." | Payment plans can default if you miss payments or fail to file future returns. The IRS will then resume collection. |
| "I should pay off all my other debts before handling tax debt." | Tax debt should often be prioritized because IRS penalties and interest accumulate quickly, and collection efforts can escalate to garnishments and levies. |
How the Tax Resolution Process Works
At TaxRise, our tax resolution process has two distinct phases. Understanding these phases helps set realistic expectations and ensures you’re prepared for each step.
Phase 1: Discovery & Strategy
After your free consultation, we will request your IRS tax transcripts to analyze your financial situation. This enables our tax experts to gain a deeper understanding of your tax issue and create a tailored tax relief plan that addresses your specific circumstances.
Phase 2: Resolution
Our team will ensure your IRS compliance by filing necessary returns, and our tax professionals will negotiate the best tax relief outcome for your situation.
IRS Programs That Can Reduce or Pause Your Tax Debt
The IRS Fresh Start Initiative was launched in 2011, creating more taxpayer-friendly resolution options. These programs provide legitimate pathways to reduce tax debt or make it more manageable through structured payment plans. This allows taxpayers to stay in compliance with the IRS and show their good faith in resolving their tax liabilities.
Here are four IRS tax relief programs that eligible taxpayers may qualify for:
| Tax Resolution Option | What It Means | Who Qualifies | How to Apply |
|---|---|---|---|
| Offer in Compromise (OIC) | Allows you to settle your tax debt for less than the full amount owed if paying in full would cause financial hardship. | Taxpayers who can’t pay the full liability and can prove financial hardship based on income, expenses, assets, and ability to pay. | Submit Form 656 and Form 433-A (OIC) or 433-B (OIC), plus a $205 application fee (unless low-income). |
| Installment Agreement | A payment plan that lets you pay off your debt over time in monthly installments. | Taxpayers who owe less than $50,000 (individuals) or $25,000 (businesses) and can pay within the time allowed. | Apply online via the IRS Online Payment Agreement tool or file Form 9465. |
| Currently Not Collectible (CNC) | Temporarily pauses IRS collection if you can’t afford to pay without causing financial hardship. | Taxpayers who demonstrate an inability to pay after covering necessary living expenses. | Contact the IRS directly and submit financial disclosure via Form 433-F, 433-A, or 433-B. |
| Penalty Abatement | Removes or reduces IRS penalties for reasonable cause or if you qualify for first-time relief. | Taxpayers with a clean compliance history (no penalties in the prior 3 years) or who can show reasonable cause (serious illness, natural disaster, etc.). | Call the IRS, submit a written request, or file Form 843 to request abatement. |
How do I Choose a Reputable Tax Resolution Partner?
Evaluate a reputable tax resolution firm by focusing on its credentials, transparent process, and realistic promises. A successful tax resolution is dependent on selecting the proper qualified representation. The tax relief industry encompasses both legitimate professionals and questionable operators, making due diligence a crucial step.
Tax Credentials to Look For (EA, CPA, Attorney)
Only specific professionals can represent taxpayers before the IRS:
- TaxRise’s Enrolled Agents (EAs): Federally licensed tax practitioners who specialize in tax matters and maintain current IRS credentials.
- Certified Public Accountants (CPAs): Licensed accountants with tax expertise.
- Tax Attorneys: Lawyers specializing in tax law and IRS procedures.
TaxRise has a team of Enrolled Agents, CPAs, and tax attorneys who maintain current certifications and have successfully represented thousands of taxpayer cases before the IRS.
Always verify credentials and avoid companies using unlicensed “professionals” without proper IRS recognition.
Questions to Ask During Your Tax Relief Consultation
Evaluate tax resolution companies with these targeted questions:
- Are you accredited by the BBB?
- What is your success rate with cases similar to mine?
- How will you keep me informed about the case’s progress?
- How much do you charge?
- How long do similar cases typically take?
- What happens if the IRS rejects our initial proposal?
- Do you guarantee your work or offer refunds?
- Can you provide client testimonials?
At TaxRise, our two-phase process combines cutting-edge technology with professional insights, ensuring you receive both efficient service and compassionate support throughout your journey to financial freedom.
Schedule your free consultation today to explore your tax resolution options with TaxRise’s qualified professionals who prioritize transparency and results. Tax resolution offers a solution to reduce tax debt, protect assets, and restore financial peace of mind. If you qualify for IRS Fresh Start programs, professional guidance significantly improves your chances of favorable outcomes.
The key to successful tax resolution lies in acting quickly, choosing qualified representation, such as TaxRise, and maintaining realistic expectations about timelines and results. With our streamlined approach and compassionate support, most taxpayers can find manageable solutions to even complex tax problems.
Frequently Asked Questions
Most tax resolution cases can take 6 to 12 months. Simple installment agreements may be approved in one to two months, while Offers in Compromise may take six to 12 months. Complex cases involving audits or multiple tax years can take even longer to resolve. Timeline factors include IRS processing delays, documentation completeness, and the specific resolution program pursued.
Gather your last three years of tax returns, all recent IRS notices and correspondence, current pay stubs or profit/loss statements, bank statements from the past three months, a detailed list of monthly household expenses, and documentation of assets. Self-employed individuals should include business financial statements.
Professional help proves valuable even for debts under $10,000, depending on your circumstances. If you can pay the full amount within 180 days, a self-managed payment plan may be sufficient. TaxRise's expertise becomes worthwhile if you're facing high penalties, dealing with multiple tax years, or if the debt involves complex business taxes.
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