Tax relief: Should you hire a pro or do it yourself?
When you're staring down an overdue tax bill, a stack of unfiled returns or an ominous letter from the Internal Revenue Service (IRS), it's tempting to procrastinate on finding a solution. After all, the idea of dealing with the IRS can be overwhelming, especially considering how complicated tax issues can be. But avoiding the problem only makes it worse, as the penalties and interest can stack up quickly, and before you know it, you're in deeper than you ever thought possible.
That's when the idea of tax relief comes into focus, and so does the big question of whether you should hire a tax relief professional or try to handle things on your own. When you pursue tax relief, the goal is typically to find ways to reduce, settle or better manage your tax debt. And while the IRS technically allows you to pursue most of these options on your own, there's also an entire industry built around helping people navigate this process.
So, how do you know which route makes sense for your situation? Below, we'll break down when a do-it-yourself approach could make sense and outline when it makes sense to call in reinforcements.
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Tax relief: Should you hire a pro or do it yourself?
Tax relief is a broad term that covers a handful of IRS programs designed to help taxpayers resolve back taxes. The most common options include setting up installment agreements or monthly payment plans, applying for an Offer in Compromise (meaning that you settle your debt for less than you owe), requesting penalty abatement and proving you're currently not collectible due to financial hardship. These programs won't erase your tax debt overnight, but they can help reduce the burden and prevent more aggressive collection efforts like wage garnishment or tax liens.
Some forms of relief are relatively simple to request, especially if your tax debt is under $5,000 and your finances are straightforward. But others, like an Offer in Compromise, involve significant paperwork and must meet strict IRS criteria. In those cases, even getting the paperwork wrong can lead to a rejection. That's where the question of DIY versus professional help really starts to matter.
When you should pursue tax relief yourself
If your tax debt is on the lower side and you feel comfortable navigating the IRS website or calling their helpline, you may be a good candidate for DIY tax relief. For example, if you just need to set up a payment plan or ask for a penalty to be waived due to a first-time mistake, the process is usually simple and clearly outlined on IRS.gov. You can also use the IRS's online tool to apply for a long-term installment agreement in just a few steps.
Another situation where DIY might make sense is if your income and expenses are easy to document and you have a clean tax history. The IRS often responds more favorably when you've consistently filed your returns and don't have a long track record of nonpayment. In these cases, doing it yourself can save you the fees that a tax relief firm would charge.
Still, you need to be honest about your comfort level. If dealing with forms, financial statements and government paperwork sounds daunting — or if you're likely to procrastinate — doing it yourself may not be the most effective route, even for a simple case.
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When to hire a tax relief pro
Sometimes, the stakes are too high to go it alone. If you owe a large tax balance (typically more than $10,000), are facing IRS enforcement actions like liens or levies or want to pursue an Offer in Compromise, professional help is often worth considering. The tax pros employed by tax relief companies, which typically include enrolled agents, certified public accountants and tax attorneys, understand how to present your case to the IRS in a way that maximizes your chances of approval.
You should also consider hiring help if you're dealing with multiple years of unfiled returns, are self-employed or have irregular income. These types of situations can complicate your eligibility for tax relief programs and make the paperwork much harder to handle. A qualified professional can help ensure you're compliant, organize your financials and act as an intermediary between you and the IRS.
That said, not all tax relief companies are created equal. Watch out for firms that promise guaranteed results or claim they can settle your debt for pennies on the dollar. No one can promise that outcome, and any reputable provider will take the time to evaluate your specific case before charging large fees.
The bottom line
If you're planning to pursue tax relief, it can make sense to secure professional help, but it's also possible in certain cases to approach the process yourself. So, before you make a decision, you should weigh the factors and determine the smartest option for your specific circumstances.
If your debt is small and your situation is straightforward, handling it yourself could be a smart, low-cost move. But if your finances are complex, the debt is substantial or you're at risk of enforcement actions, it's probably time to bring in a pro.
Either way, the worst move is doing nothing. Whether you hire help or take the DIY route, acting sooner rather than later can keep the situation from spiraling further out of control and get you one step closer to financial peace of mind.
