As of 2025, the IRS has intensified its collection efforts, recovering over $4.7 billion in unpaid taxes through enhanced enforcement initiatives. With the resumption of aggressive collection actions, many taxpayers are seeking assistance to navigate their tax debts. Although not every situation necessitates professional help, there are compelling reasons to consider hiring a tax debt relief company.
3 Reasons to Hire a Tax Debt Relief Company
If you’re asking yourself, “Can a tax debt relief company really help me?” consider these three benefits of working with a tax professional.
1. Help Navigating Complex IRS Programs
The IRS offers various programs like the Fresh Start Initiative and Offer in Compromise (OIC) to help taxpayers settle their debts. However, these programs have stringent eligibility criteria. In fiscal year 2022, only 36% of OIC applications were accepted. A tax debt relief company can assess your situation, determine eligibility, and guide you through the application process to enhance your chances of approval.
2. Protection Against Aggressive Collection Actions
With the IRS resuming full-scale enforcement, taxpayers face risks like wage garnishments, bank levies, and asset seizures. A tax debt relief company can intervene on your behalf, negotiating with the IRS to halt or mitigate these actions while exploring viable resolution options.
3. Tailored Financial Solutions
Tax debt relief professionals can develop customized strategies based on your financial situation. Whether it’s setting up an installment agreement, applying for penalty abatement, or pursuing an OIC, these experts can identify the most suitable path to resolve your tax debt efficiently.
What to Look For in a Tax Relief Company
Hiring a tax debt relief company generally makes sense if your tax debt is over $10,000 or you don’t have the confidence to deal with the IRS on your own. But before you decide which company to work with, you’ll want to do some research. Here are three things you’ll want to explore before signing any contract.
- Experience. Find out how long the company has been in business. We suggest working with one that has at least 10+ years under its belt. This shows that they know what they are doing and are acting responsibly. You’ll also want to verify that they have licensed tax professionals (enrolled agents, CPAs, and tax attorneys) on staff. If you’re interested in an Offer in Compromise, be sure to ask about client success stories, too!
- Reputation. It’s important to get a well-rounded picture when looking at a company’s reputation. Dealing with tax debt is not black and white, so expect to find some unhappy clients. This, however, should not be the norm. Be sure to check the Better Business Bureau for customer reviews and complaints. Verify the company is accredited, too. You’ll want to work with one that has an A+ rating for at least 10+ years. Other review sites to consider include Google, Trustpilot, and ConsumerAffairs.
- Price Transparency. When researching tax debt relief companies, be sure to ask about their fees. Some charge $250 to $500 for the initial consultation, while others are free. Additionally, ask about flat-rate pricing. Some companies charge a smaller fee upfront, only to hit you with numerous hidden fees later. It’s a good idea to get everything in writing so you understand what services you’ll be receiving and the total cost.
Final Thoughts
Facing tax debt can be daunting, especially with the IRS’s renewed focus on collections. Although not everyone needs professional assistance, a reputable tax debt relief company can provide the expertise and support necessary to navigate complex IRS programs and protect against aggressive collection actions. Evaluate your situation carefully and consider seeking professional help if you’re overwhelmed or unsure about the best course of action.