The Ultimate Guide to Resolving IRS Debt: What to Do and Who to Hire

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Finding out you owe the Internal Revenue Service (IRS) is a stressful experience. Panic, questions and a stack of confusing notices often follow. It’s tempting to ignore the problem and hope it goes away, but that won’t work. The IRS has teeth — penalties, interest, liens, levies and sustained collection actions can seriously harm finances.

The Problem of IRS Debt and Why Acting Matters

Each fiscal year, the IRS handles billions in unpaid assessments and collection activity. In FY2024, the IRS reported it collected over $120 billion in unpaid assessments, netting roughly $77.6 billion after adjustments. That shows both the scale of unpaid taxes and the agency’s ongoing collection power. Ignoring notices allows penalties and interest to accumulate. Working toward a resolution preserves assets and maintains a good credit standing.

First Steps to Take When You Learn You Owe Back Taxes

An IRS debt notice can be overwhelming, but addressing it promptly can make a significant difference. The following early actions help verify whether the balance is correct, reduce the risk of liens or levies, and keep interest charges from spiraling:

• Don’t ignore IRS notices: Notices escalate quickly. Initial letters ask for payment. Later notices threaten levies or liens. Responding early changes outcomes.
• Verify the debt: Mistakes happen — identity theft, misapplied payments or computational errors. Check the notice against records and recent filings.
• Gather documentation: Collect tax returns, W-2s, 1099s, bank statements, pay stubs and the most recent IRS notice.
• Don’t promise what you can’t keep: Overpromising and then missing payments invites harsher enforcement.
• Make a phone call or hire a professional: If payment is possible, contact the IRS to set up a payment plan. If the situation is complex — multiple years, payroll taxes or large balances — seek professional help.

When to Hire a Professional to Resolve IRS Debt

IRS debt is a serious matter, and trying to manage it alone can be risky. Penalties and interest accumulate quickly, while aggressive actions such as liens, levies or wage garnishments can threaten financial stability. Complex issues, such as multiple years of unfiled returns, payroll tax obligations or business-related liabilities, make the process even more overwhelming. In such situations, placing trust in a qualified professional is crucial for achieving the best possible outcome.

The right expertise ensures that the IRS is handled properly and that costly mistakes are avoided. Tax attorneys provide legal protection and advocacy in high-stakes cases. Certified Public Accountants (CPAs) bring strong financial strategy and tax preparation skills. Enrolled Agents (EAs) are federally authorized to represent taxpayers before the IRS at a significantly lower cost. Tax resolution companies offer comprehensive solutions, including Offers in Compromise and installment agreements. However, careful vetting is crucial in finding a reputable firm.

5 Notable Tax Resolution Firms

The following list highlights some of the best firms recognized for handling back tax issues.

1. Polston Tax

Polston Tax is a nationally recognized firm focused exclusively on resolving IRS and state tax issues since 2001. With a large team of attorneys, CPAs, accountants and case managers, the firm provides comprehensive representation for individuals and businesses with unpaid taxes. Services encompass the full spectrum of tax resolution, including appeals, audit representation, Offers in Compromise, penalty abatements, installment agreements, and assistance with lien or levy removal. 

The firm also supports payroll tax cases and complex matters involving Revenue Officers. Beyond resolution, Polston Tax offers accounting and advanced tax planning services for established businesses with annual incomes exceeding $250,000, ensuring long-term compliance. Headquartered in Oklahoma with multiple offices and document drop locations, the firm has secured over $250 million in tax savings while maintaining a strong presence in community service and volunteer initiatives.

2. Community Tax

Community Tax is a full-service tax resolution firm with more than 15 years of experience assisting over 110,000 clients nationwide. The firm’s licensed professionals have negotiated more than $1.3 billion in tax liabilities, focusing on relief from wage garnishments, liens, levies and other IRS collection actions. Services include Offers in Compromise, installment agreements, penalty reduction, payroll tax support, and help with unfiled or back tax returns. 

Community Tax also provides ongoing preparation and compliance assistance to help individuals and businesses remain in good standing with the IRS. Accredited by the Better Business Bureau with an A+ rating, the firm emphasizes peace of mind through a step-by-step process that begins with a free, confidential consultation and continues through negotiation, resolution and long-term compliance strategies.

3. Tax Defense Network

Tax Defense Network, part of the MoneySolver family, has been providing tax resolution services since 2007 and has consulted on more than $16 billion in tax debt. The firm utilizes a nationwide network of licensed professionals, including enrolled agents, CPAs, tax analysts and attorneys, to resolve IRS and state tax issues for both individuals and small businesses. 

Services cover a broad range of solutions, including audit representation, payment plan negotiation, Offers in Compromise, penalty relief and small business tax support. Known for its transparent pricing and client-focused approach, Tax Defense Network also partners with CreditSolver to provide credit repair assistance. Accredited by the Better Business Bureau with an A+ rating and recognized for ethical business practices, the firm combines technical expertise with community involvement through charitable partnerships and volunteer programs.

4. Optima Tax Relief

Optima Tax Relief is one of the largest and most recognized firms in the tax resolution industry, serving clients nationwide through a team of attorneys, CPAs and enrolled agents licensed in all 50 states. Since its founding, the company has helped resolve more than $3 billion in tax liabilities, offering services that include wage garnishment and levy relief, audit defense, penalty abatement, payroll tax negotiation and settlement programs such as Offers in Compromise. 

The firm has earned widespread recognition, including multiple Gold Stevie Awards for customer service, Forbes’ Best of 2024 for Tax Relief Services and the BBB International Torch Award for Ethics. Optima has also been honored as a Top Workplace 10 times and named to the Inc. 5000 list seven times, reflecting its client-focused approach and organizational strength.

5. Anthem Tax Services

Anthem Tax Services is a California-based firm specializing in tax debt relief, tax preparation and tax law, backed by more than 100 years of combined professional experience. The company offers a broad spectrum of services, including Offers in Compromise, IRS installment agreements, penalty abatement, wage garnishment release and assistance through the IRS Fresh Start program. 

With a strong emphasis on trust, service, honesty, integrity and client education, Anthem has helped clients save millions of dollars in back taxes. The firm is recognized for its transparent policies, including a money-back guarantee if it cannot reduce tax debt or secure more manageable terms (with some exclusions). Highly rated by clients, Anthem Tax Services is recognized for its dedicated representation, effective negotiation with tax authorities, and a mission to restore financial stability and provide peace of mind.

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How to Choose the Best Tax Firm to Resolve Back Taxes

Consider these factors before hiring:

• Licensing and credentials: Confirm EA, CPA or attorney status with authority to represent before the IRS.
• Track record and verifiable results: Look for published case studies or resolution statistics to verify the company’s performance. Beware unverifiable claims.
• Reputation with oversight groups: Check BBB listings, state bar for attorneys and online reviews. Focus on complaint trends.
• Fee structure and disclosures: Seek clear proposals — no hidden extras.
• Communication and client access: Understand who manages the case and how often updates are provided.
• Methodology suitability: Match the firm’s strengths with the specific need, such as OIC, installment, CNC or litigation.

What to Expect When Hiring a Tax Firm

Working with a tax resolution firm typically follows a structured process. It usually begins with an initial consultation, which is often free, where the scope of the case, estimated costs and potential options are outlined. 

From there, the documentation phase begins, requiring clients to provide their tax returns, bank records, pay stubs and any relevant IRS notices. Once the necessary information is gathered, the firm develops a strategy, which may involve setting up an installment agreement, pursuing an Offer in Compromise, requesting Currently Not Collectible status or filing an appeal. 

After the strategy is chosen, the firm communicates directly with the IRS under Power of Attorney, shielding the client from most direct contact. The final stage involves resolution and follow-up, with the agreement documented in writing and future compliance obligations explained clearly.

Key Questions to Ask Before Hiring

Choosing a tax resolution firm requires careful vetting and consideration. Asking these questions up front helps identify qualified professionals and prevents costly mistakes:

• Are you an EA, CPA or attorney?
• Can references or case studies be provided?
• What is the total fee range and billing structure?
• Who will be the main point of contact?
• What outcomes are realistic, and what risks remain?

DIY vs. Professional Help

DIY fits small balances, single-year underpayments, or cases where full payment or a basic installment plan is feasible. It minimizes cost but requires time and comfort in interacting with the IRS. Professional help is recommended for complex, high-value or high-risk cases. Professionals can negotiate improved outcomes, pursue penalty abatements and reduce stress.

Why Speed and the Right Partner Matter

Back taxes do not disappear. Interest and penalties accumulate, and the IRS has broad authority for collection. The correct first actions — verifying the claim, gathering documents and selecting a resolution path — can save thousands, protect assets and restore peace of mind. 

When the situation is complex or direct negotiation is not preferred, hiring a credentialed, transparent professional is often the safest choice. Partnering with a leading tax firm to resolve back taxes ensures compliance and access to programs and negotiations that individuals may not be able to secure on their own.

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Reviewed and edited by Albert Fang.

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Article Title: The Ultimate Guide to Resolving IRS Debt: What to Do and Who to Hire

https://fangwallet.com/2025/10/06/the-ultimate-guide-to-resolving-irs-debt-what-to-do-and-who-to-hire/

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