Resolve IRS and state tax debt with licensed professionals, installment agreements, penalty relief, and Offers in Compromise.
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| $98.1M | Total value of the Offers in Compromise the IRS accepted in fiscal year 2025. An accepted Offer in Compromise settles a tax liability for less than the full amount owed. Eligibility and outcomes depend on your income, expenses, and asset equity. (IRS Data Book, fiscal year 2025, Table 4-1) |
| 5,464 | Offers in Compromise the IRS accepted in fiscal year 2025, out of 38,797 offers proposed. Acceptance depends on the IRS assessment of your ability to pay. (IRS Data Book, fiscal year 2025, Table 4-1) |
| 2026 Update | Starting in summer 2026, the IRS is replacing First Time Abate penalty relief with Automatic Exemption from Penalty. Under AEP, a taxpayer who files or pays late but filed and paid on time for the prior three years is not assessed a failure-to-file, failure-to-pay, or failure-to-deposit penalty, and no taxpayer request is required (IRS, Administrative penalty relief, reviewed July 14, 2026). Unpaid tax and interest remain due, and interest compounds daily (IRS Topic no. 653). |
Tax resolution is the process of settling or restructuring IRS and state tax debt through official relief programs such as an Offer in Compromise, an installment agreement, or penalty abatement, handled by licensed CPAs, Enrolled Agents, and tax attorneys. The IRS accepted 5,464 Offers in Compromise totaling $98.1 million in fiscal year 2025, out of 38,797 offers proposed, according to the IRS Data Book. Tax outcomes depend on your complete financial picture, so confirm what you actually qualify for with a licensed tax professional before you commit to a program. If you want the mechanics first, our guide to how tax resolution services work explains each IRS relief program and who is licensed to handle it.
Settle your total IRS tax debt for less than the full amount owed. The IRS evaluates your income, expenses, and asset equity to determine what it considers collectible, and that calculation sets the amount it will accept. A complete application with full supporting documentation gives the IRS what it needs to evaluate your case. Outcomes vary by situation and cannot be guaranteed.
A structured monthly payment plan that keeps you compliant and stops enforced collection. Our network specialists negotiate installment agreement terms based on your documented income, expenses, and ability to pay.
IRS failure-to-file penalties reach up to 25% of the tax owed, calculated at 5% for each month or part of a month a return is late (IRS Topic no. 653). Relief may be available through First Time Abate for prior tax periods, through Automatic Exemption from Penalty beginning summer 2026, or through reasonable cause where circumstances outside the taxpayer’s control caused the late filing. The IRS determines eligibility from the taxpayer’s compliance history and the facts of the case.
If the IRS is garnishing your wages or levying your bank account, every day matters. Our network specialists act urgently on active collection situations.
If you cannot pay without failing to cover basic living expenses, the IRS may temporarily halt all collection activity while your situation is evaluated and a longer-term strategy is developed.
Filing compliance is required before the IRS will consider most relief programs. Our network professionals prepare and file missing returns as part of your complete resolution strategy.
The IRS Fresh Start Program is not a single application you file. It is the name given to a set of IRS policy changes that widened access to the collection alternatives listed above, primarily the Offer in Compromise, streamlined installment agreements, and the rules governing when the IRS files a federal tax lien.
In practice it works in three ways. Streamlined installment agreements let many individual taxpayers set up a monthly payment plan without submitting a full financial disclosure. Offer in Compromise eligibility is measured against the IRS Collection Financial Standards for allowable living expenses, which changed how much income the IRS treats as available to pay. And the lien filing threshold was raised, with lien withdrawal possible in some cases once a qualifying direct debit agreement is in place.
Fresh Start applies to individual taxpayers and small businesses that owe federal tax and are current on filing, or can become current. Filing compliance comes first, because the IRS will not evaluate most relief requests while returns are missing. Eligibility is determined by the IRS from your income, expenses, and asset equity, not by any provider, so have a licensed CPA, Enrolled Agent, or tax attorney verify which Fresh Start option your situation actually fits.
Your balances, IRS notices, and active collection actions are reviewed. You receive an honest assessment of your options and what you realistically qualify for, at no cost and with no obligation.
Your licensed tax professional formally notifies the IRS of your representation, directing all IRS communication through your advocate. They pull your transcripts, analyze your complete tax history, and build a personalized resolution strategy.
Your professional negotiates directly with the IRS using the strategy best positioned for your situation. After resolution, United Debt Relief provides ongoing compliance support, including guidance on staying current with future filing and payment deadlines.
An OIC is an agreement with the IRS to settle your tax debt for less than the full amount owed. In fiscal year 2025, taxpayers submitted 38,797 offers in compromise and the IRS accepted 5,464 of them, about 1 in 7 (IRS Data Book, fiscal year 2025, Table 4-1). Whether you qualify depends on your full financial picture, so have a licensed tax professional review your numbers.
An accepted Offer in Compromise settles a tax liability for less than the full amount owed. The IRS sets the amount it will accept by evaluating your income, expenses, and asset equity, so there is no fixed reduction amount or percentage. Outcomes depend on your full financial picture and should be verified with a licensed tax professional. Results cannot be guaranteed.
Setting up an installment agreement can take weeks. An Offer in Compromise typically takes 6 months to over a year to process through the IRS. Your tax professional will outline a realistic timeline based on your specific case.
The IRS may release a wage garnishment when a taxpayer enters a qualifying installment agreement, is placed in Currently Not Collectible status, has an Offer in Compromise accepted, or shows that the levy creates an economic hardship. A licensed CPA, Enrolled Agent, or tax attorney can file a power of attorney and request the release directly with the IRS. Whether a release is granted depends on the taxpayer’s filing compliance and financial situation, so outcomes cannot be guaranteed.
CNC status is a temporary IRS designation that halts all collection activity when you can demonstrate that paying would prevent you from meeting basic living expenses. It provides time to develop a longer-term resolution strategy.
Yes. Tax professionals handle both federal IRS and state tax liabilities across all 50 states. State agencies have their own programs and processes, specialists navigate both simultaneously.
The IRS generally requires full filing compliance before considering OICs and most other relief programs. Preparing and filing missing returns is typically the essential first step in any resolution strategy.
Fees vary based on case complexity and the resolution strategy required. All fees are disclosed in full following your free consultation, no hidden costs, no surprises. There is no charge to speak with a specialist and receive your initial assessment.
The IRS Fresh Start Program is an umbrella term for a series of IRS policy changes introduced to make it easier for individuals and small businesses to resolve tax debt. It expanded eligibility for Offers in Compromise, raised the threshold before the IRS files a tax lien, and simplified installment agreement access. Despite the name, Fresh Start is not a single program you apply for, it describes a set of expanded relief options our network professionals use when building your resolution strategy.
A tax lien is a legal claim the IRS places against your property, including real estate, financial accounts, and personal property, to secure the debt you owe. It does not immediately take anything, but it damages your credit and prevents you from selling or refinancing property cleanly. A tax levy is the actual seizure of assets, the IRS taking your wages, bank account funds, or physical property to satisfy the debt. Liens typically precede levies. Professional representation can address both, but acting before a levy is issued gives you significantly more options.
Yes. The IRS has broad legal authority to seize real property, vehicles, bank accounts, and wages if tax debt remains unresolved. However, the IRS must follow a specific process before seizure, issuing notices and allowing time for response, and there are legal protections for primary residences that make home seizure relatively rare compared to wage garnishment and bank levies. Our network professionals act urgently when collection activity is imminent because every day adds penalties and narrows resolution options.
Legitimate tax resolution providers do exist. The IRS cautions taxpayers to be wary of any firm that guarantees it can erase a tax debt or that demands large fees before any work is done. Legitimate providers work only within official IRS programs, including installment agreements, penalty relief, Currently Not Collectible status, and Offers in Compromise, and only CPAs, Enrolled Agents, and attorneys hold unlimited rights to represent taxpayers before the IRS. United Debt Relief runs its own Tax Resolution program, enrolls clients directly, discloses all fees before enrollment, and provides a free initial consultation. Eligibility and outcomes depend on each taxpayer’s situation.
Tax resolution providers help taxpayers resolve back taxes by working within official IRS and state programs, including installment agreements, penalty relief, Currently Not Collectible status, and Offers in Compromise. The process generally follows four steps. A licensed representative files a power of attorney so the IRS communicates through the representative. The representative pulls IRS transcripts to confirm balances, penalties, and filing gaps. Any unfiled returns are prepared and filed, because the IRS requires filing compliance before it will consider most relief. The representative then submits the relief request supported by documented income, expenses, and asset equity. United Debt Relief’s Tax Resolution program follows this sequence and begins with a free consultation. Eligibility and outcomes depend on each taxpayer’s situation.
In-depth answers to the questions people ask most about IRS notices, back taxes, and federal relief programs. If tax debt is only part of the picture, our debt settlement program handles the unsecured balances the IRS does not.
A plain-language walkthrough of every IRS relief program and who handles it.
The penalty, lien, and levy timeline, stage by stage.
How the Fresh Start relief options work and who is eligible in 2026.
Walk the Reasonable Collection Potential formula before you apply.
The releases and agreements that lift an IRS levy on your paycheck.
How the IRS 10-year collection clock works and what pauses it.
What a 1099-C means for your return after a settlement.
How the IRS treats settlement and judgment proceeds.
How the IRS treats settlement proceeds received by a business.
United Debt Relief is America’s Debt Relief Experts, a national debt relief company serving all 50 states. Our five programs span debt settlement, debt validation, debt consolidation loans, tax resolution, and credit repair, so your debt, tax, and credit problems are handled together rather than referred out. Our specialists assess your situation, explain each option, and enroll you in the one that fits. Program services are performed by our stringently vetted in-network providers and law firms, each BBB Accredited with an A rating. Results vary by situation.
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