Have tax debt? Here's how to find professional help.
Tax season came to an end this week, much to the relief of millions of Americans. But if you hit submit on your taxes and were left with a bill you can't pay, you're far from alone. As inflation continues to squeeze budgets and interest rates remain elevated, many Americans are finding it harder than usual to keep up with what they owe — and that includes paying the taxes that are owed to the Internal Revenue Service (IRS). In turn, tax debt is a growing concern for many taxpayers, whether they owe a few thousand dollars in back taxes or have several years of unfiled returns.
The IRS doesn't typically just let up on the collection efforts when you owe money for back taxes, either. The federal agency has a variety of enforcement measures it can use to collect the money owed and the taxpayers who've fallen behind may eventually have to deal with aggressive collection actions like wage garnishments, tax liens or levies. So, if you're in this position, just ignoring the problem won't make it go away — but getting the right kind of help might.
Finding a trusted tax professional can be the difference between spiraling deeper into debt and coming up with a manageable resolution. But not every tax pro is equipped to handle serious IRS issues, and not every company promising "tax relief" delivers. So how do you find legitimate, qualified help for your tax debt — and how to decide which option is right for your situation? That's what we'll answer below.
Chat with a tax debt specialist today to learn about your options.
How to find professional tax debt help
When facing tax debt, several professional options are available, each with distinct advantages depending on your situation. Here's how and where you can find the help you may need:
Certified public accountants: Certified public accountants (CPAs) specialize in tax preparation and planning and can help if your tax issue stems from inaccurate filings, errors in past returns or a complicated financial situation involving multiple income streams. They can amend tax returns, help you get up to date and communicate with the IRS on your behalf. However, not all CPAs specialize in tax resolution, so you'll want to make sure that anyone you're considering has experience with back taxes or tax debt negotiations.
Enrolled Agents: Enrolled Agents (EAs) are federally licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS, making them a solid choice if you need representation during an audit, collection issue or appeal. These types of tax professionals generally have more direct experience with tax resolution than general CPAs.
Tax attorneys: A tax attorney can provide expertise for legal issues surrounding tax debt — think criminal investigations, audits involving large sums or serious disputes with the IRS. If your case involves potential legal trouble or if you've already received a summons, hiring a tax attorney may be the right move. They're also useful in cases where attorney-client privilege is important and are invaluable for complex legal tax situations.
Tax relief companies: Tax relief companies offer perhaps the most comprehensive approach by employing a variety of tax professionals — CPAs, EAs and tax attorneys — under one roof. This multidisciplinary approach provides several advantages, including:
- Access to different types of expertise without having to coordinate between multiple professionals
- Specialized experience with IRS negotiation tactics and relief programs
- Economies of scale that sometimes (though not always) result in more affordable fees than hiring individual practitioners
- Streamlined communication through a dedicated case manager
- Experience with a wide variety of tax debt situations and solutions
The quality can vary among tax relief companies, though, making research essential before committing.
Get started with a top tax debt relief company here.
How to choose the right tax professional
The right kind of help depends on where you are in the tax debt process. If you owe a significant amount in back taxes and haven't been contacted by the IRS yet, a CPA or EA with tax resolution experience may be all you need to get back on track. They can help you understand what you owe, correct past returns and set up a payment plan.
But if you've already received IRS notices, had wages garnished or are facing a tax lien, it's likely time to get more serious help. A tax relief company or tax attorney might be the better route, especially if your case is complex or involves years of unfiled taxes.
No matter which route you choose, though, always vet the professional or company first. Look for credentials like CPA licenses, IRS EA status or state bar membership. You should also check out reviews on third-party sites and see if the firm has any complaints with the Better Business Bureau.
The bottom line
Tax debt is stressful, but it's also fixable with the right help. Whether you choose to work with a solo tax professional or a full-service tax relief company, however, the most important step is getting started. The longer you wait, the more penalties and interest you'll rack up — and the fewer options you'll have to resolve the issue affordably.
