Tax resolution: what to know

What the job involves, what changes the price, and what to ask a pro.

What tax resolution is

A specialist helps people with unpaid taxes or notices by reviewing the account, communicating with the tax agency and exploring payment or relief options that may apply. People look for one after receiving a balance due notice, a lien warning or a letter about unfiled returns. This is general information, not tax advice, and no result is promised.

Signs you need it

  • You received a notice with a balance due that you cannot pay in full
  • A letter warns of a lien or a levy on your wages or accounts
  • You have not filed returns for one or more years
  • You are unsure which notices are real and which deadlines matter
  • A business owes payroll or sales taxes
  • You want someone to speak with the tax agency for you

What the pro does

  • Review every notice and the account records to understand what is owed and for which years
  • Check whether all required returns have been filed and help prepare missing ones
  • Explain, in general terms, the payment and relief options the agency describes
  • Gather the financial information the agency requires
  • Communicate with the agency under a signed authorization
  • Track agreements and deadlines so the account stays in good standing

What changes the price

Every job is different, so we do not publish prices. These are the things that move the quote up or down.

  • The number of tax years and notices involved
  • Whether returns are unfiled
  • Whether the debt is personal or tied to a business
  • Complexity of your income and financial records
  • Whether collection actions have already started
  • Whether an appeal is needed
  • How much contact with the agency is needed

What a written quote should spell out

  • The stages covered: review, return preparation, agency contact and follow up
  • Whether the fee is flat, hourly or phased
  • What the preparer will do if the agency denies a request
  • What documents you must provide and when
  • The authorization forms you will sign

Questions to ask before you hire

  • Are you a CPA, enrolled agent or attorney, and how can I verify that?
  • Will you review my account before you recommend anything?
  • What is the first step when a levy is threatened?
  • Do you prepare missing returns?
  • How do you keep me informed of agency letters and deadlines?
  • What happens if I miss a payment under an agreement?
  • Do you charge before any work is done?

Red flags

  • Promises to settle your debt for far less than you owe
  • Large payments up front before reviewing your account
  • Advertising that guarantees results
  • Advice to ignore a notice
  • A firm that cannot show a credential to represent you before the agency

What you can do yourself

Open every notice, note the deadline, gather your returns and income records, and contact the agency using the number on the notice. Many agencies describe payment options on their websites. A qualified professional can help when the amount is large, returns are missing or collection has begun.

Licenses and permits

Tax resolution does not need its own license, but only certain credentialed professionals may represent you before the tax agency, such as attorneys, CPAs and enrolled agents. Ask for the credential and check it with the state bar, the state board or the tax authority.

Tax resolution questions

Can a specialist settle my debt for less?

Some options exist but are not available to everyone. A qualified professional can explain without promising a result.

Should I pay up front?

Ask for terms in writing and be cautious of large up front fees. Nothing should be promised before your account is reviewed.

Can I deal with the agency myself?

Yes, in many cases. A professional can help when the situation is complex.

Pro reviewers

Pros who offer tax resolution remotely can improve this guide, like Wikipedia. We check every edit before it goes live. Every approved edit is credited in the edit history and on the pro's profile.

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