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IRS tax relief and tax debt resolution
IRS tax debt can grow through penalties and interest while collection notices continue. Federated Tax helps individuals and small businesses understand the balance, become filing-compliant, and evaluate available tax relief based on the facts of the case.
This page covers the main resolution paths: installment agreements, penalty abatement, unfiled returns, liens, levies, and collection planning. A specific IRS letter, an offer in compromise, or formal representation has its own process, eligibility rules, and documentation requirements.
What You Get
Which IRS tax relief options may apply?
The right tax debt solution depends on the amount owed, filing history, current income, necessary expenses, assets, and collection status. A payment plan may be appropriate when the full balance cannot be paid immediately. Penalty abatement may be available when the taxpayer meets the applicable IRS criteria. Missing returns generally must be addressed before a long-term resolution can be approved.
An offer in compromise is a separate IRS program that may resolve eligible debt for less than the full amount. It is not available to everyone and acceptance is never guaranteed. Cases involving an active levy, lien, audit, or appeal may also require IRS representation.
How It Works
How does tax debt resolution work?
The engagement begins with a review of the tax years involved, filed and unfiled returns, IRS transcripts or account records, current notices, and the taxpayer's ability to pay. Federated Tax then identifies the compliance work that must be completed and explains the realistic resolution options.
After the taxpayer approves a strategy, the EA-led team prepares the required returns, financial information, or resolution request. When representation is authorized, an eligible individual representative can communicate with the IRS for the tax matters and periods listed on Form 2848. If the immediate problem is a letter with a response deadline, start with an IRS letter and notice review.
Compliance Support
Payment plans, penalties, liens, and levies
Installment agreements spread an eligible balance over time, but the terms depend on the account and the taxpayer's financial position. Penalty relief is evaluated separately from the underlying tax and interest. A federal tax lien is a claim against property, while a levy is a collection action against property or funds; each requires a case-specific response.
Federated Tax does not promise a particular result before reviewing the account. The goal is to present accurate information, protect response and appeal deadlines, and pursue the most suitable available path without marketing a program for which the taxpayer does not qualify.
Installment agreements spread an eligible balance over time, but the terms depend on the account and the taxpayer's financial position.
Pricing Clarity
What does IRS tax relief service cost?
Fees depend on the number of tax years, missing returns, active collection actions, business payroll issues, and the type of resolution requested. Federated Tax provides a written scope and flat-fee quote after the initial case review. Government application fees, required payments, and third-party costs are identified separately when they apply.
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FAQ
Common questions about IRS tax relief
What is IRS tax relief?
IRS tax relief is a general term for available ways to resolve or manage a tax balance, including installment agreements, penalty abatement, offers in compromise, and other collection alternatives. Eligibility and required documentation differ by program.
Do unfiled returns need to be completed first?
Usually, filing compliance is an important part of obtaining a long-term resolution. Federated Tax reviews the missing years, prepares the required returns within the agreed scope, and confirms what the IRS requires for the requested program.
Can Federated Tax stop an IRS levy?
Available options depend on the notice stage, deadlines, financial facts, and whether the levy has already occurred. An EA can review the account and pursue an available release, hold, payment arrangement, or appeal, but no result can be guaranteed before the case is evaluated.
Is an offer in compromise the same as a payment plan?
No. A payment plan generally pays an eligible balance over time. An offer in compromise is a separate application asking the IRS to accept less than the full liability when the applicable requirements are met.
Can an Enrolled Agent represent me before the IRS?
Enrolled Agents have unlimited practice rights before the IRS. Representation for a specific client and matter is authorized using the appropriate power of attorney, generally Form 2848.
What should I bring to a tax debt consultation?
Bring recent IRS letters, the tax years involved, copies of filed returns, details about missing returns, current income and expenses, asset and debt information, and any levy, lien, audit, or appeal deadline.