Income Tax Relief Options for Dallas & Fort Worth Individuals Facing IRS Collections

By David B. Coffin

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Tax

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Last Modified on Feb 17, 2026

If you cannot pay your tax obligations when you file your federal or state tax returns, you may feel trapped and helpless. Fortunately, there are income tax relief options for Dallas & Fort Worth individuals facing IRS collections. Our experienced Fort Worth tax lawyer can help you understand and pursue these options.

What Are IRS Collections?

Tax collection notices may come from state or federal agencies. In Dallas, the Texas Comptroller of Public Accounts, located at 2655 Villa Creek Drive, is the agency that handles tax collection and other tax-related functions. On a federal level, the IRS handles tax collections.

In fiscal year 2024, the IRS collected over $3 billion in delinquent returns. Many people and businesses struggle to pay their taxes by the legally required due date. If you fail to send your full tax payment when it’s due, the IRS will send you a bill for the amount you still owe.

This action marks the beginning of the IRS collections process, which will continue until either you pay the tax amount you owe or the IRS is no longer legally allowed to collect the outstanding tax debt from you.

While your tax balance remains unpaid, it’s subject to daily compounding interest and penalties. Therefore, it’s crucial to pay your tax balance as soon as you can. If you’re unable to, there are income tax relief options available to Dallas and Fort Worth individuals facing IRS collections.

The Importance of Communication When Facing IRS Collections

If you receive a tax collection notice from the IRS, you may be tempted to ignore it or discard it. However, failing to respond to notices could stimulate more aggressive collection actions from the IRS, such as wage garnishments or asset seizures. When the IRS knows you’re trying to meet your tax obligations, they’re more likely to be reasonable with you.

Income Tax Relief Options for Dallas & Fort Worth Individuals

If you’re a taxpayer in Dallas, Fort Worth, or surrounding areas who’s facing the possibility of IRS collections, you may be wondering what happens next. Depending on your financial situation, you may be able to choose from a number of tax relief options, such as:

• Payment plans. The IRS offers payment plans, also known as online payment agreements or installments, for those who can’t pay some of their tax balance. Some of these plans charge an additional setup fee ranging from $22 to $69. Those with low income may be able to have their setup fee waived or reimbursed.
• Currently Not Collectible (CNC) status. This taxpayer relief designation may be granted in cases of qualifying financial hardship. If paying the outstanding tax debt would make it impossible or extremely difficult for the taxpayer to meet their living expenses, they will likely qualify for CNC. The IRS is temporarily prohibited from all collection efforts on a taxpayer who meets CNC status.
• Offer in compromise. This is a tax settlement agreement between the IRS and the taxpayer for less than the original amount owed. The taxpayer can fulfill their settlement amount by making a “lump sum offer,” payable in five or fewer installments, with the full amount being paid within five months.
  Alternatively, they can make a “periodic payment” offer, which is payable in six or more monthly installments, with the full amount being paid within 24 months.

If your offer in compromise application is rejected, you may appeal within 30 days of the rejection.

When to Hire a Dallas-Fort Worth Tax Attorney at David Coffin PLLC

The attorneys at David Coffin PLLC understand how challenging it can be to meet your tax obligations when they’re due. We have over four decades of legal experience and can use our knowledge to help you determine which tax relief option is right for you to reduce your financial burden and make tax repayment more manageable. With legal assistance, you can resolve your tax obligations and potentially avoid the full penalties of the law.

You should hire a tax lawyer in Dallas and Fort Worth the moment you realize you can’t pay your owed taxes. Whether you need help negotiating a tax settlement or understanding tax relief laws, our skilled tax lawyer can help.

FAQs

Hire a Tax Lawyer in the Dallas-Fort Worth Area

Commonly utilized IRS tax-collecting tactics can be aggressive and frightening. It’s helpful to have an experienced tax attorney in your corner who understands tax laws. If you want to pursue tax relief or negotiate a settlement, the attorneys at David Coffin PLLC can help you understand your options. Contact our team to schedule a consultation.