Texas Tax Relief: Resolve IRS and State Tax Debt

If you owe back taxes to the IRS or to the Texas Comptroller of Public Accounts, the rules, deadlines, and resolution options that apply to your case are different from those in other states. Texas has zero personal income tax. Texas has no personal income tax, so most tax debt cases in Texas are federal IRS issues. However, the Texas Comptroller pursues franchise tax, sales tax, and employer payroll tax aggressively. Business owners with Texas-source revenue can face state-level enforcement separately from any federal liability.

Clear Start Tax represents Texas taxpayers in federal IRS matters and coordinates with the Texas Comptroller on state-level resolution. This page explains the specific options available to Texas residents, common issues we see in the state, and how to start the process.

Federal IRS Tax Relief Options for Texas Residents

The federal Fresh Start Program is available to taxpayers in every state including Texas. The four main IRS resolution paths are:

  • Offer in Compromise – Settle your IRS debt for less than you owe, based on your Reasonable Collection Potential.
  • Installment Agreement – Pay over time, with streamlined options available for balances under ,000.
  • Penalty Abatement – Remove failure-to-file and failure-to-pay penalties through First-Time or Reasonable Cause Abatement.
  • Currently Not Collectible – Pause IRS collection when paying would cause financial hardship.

Texas State Tax Considerations

Texas business owners frequently face franchise tax assessments going back multiple years, often triggered by failure to file the No Tax Due Information Report. Sales tax assessments on out-of-state remote sellers (post-Wayfair) are another common issue. The Comptroller can pursue successor liability against new owners of businesses with prior tax debt.

If you owe both IRS and Texas Comptroller balances, the order in which you negotiate matters. State and federal collection agencies do share information but have separate procedures, deadlines, and resolution programs. A coordinated strategy typically yields better terms than handling each agency in isolation.

Common Texas Tax Debt Situations

Cities We Serve in Texas

Clear Start Tax represents Texas taxpayers throughout the state, including residents of Houston, Dallas, San Antonio, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Lubbock, Laredo, Garland, Irving, McKinney, and Frisco. All consultations are conducted by phone and video, so location within the state does not affect service availability.

How the Process Works

  1. Free consultation. A 15-minute call to understand your situation, the total debt, and whether any active collection action is pending.
  2. Investigation. We file Form 2848 (Power of Attorney) and pull complete IRS and state account transcripts. This pauses most direct collection contact with you.
  3. Resolution analysis. We calculate your Reasonable Collection Potential, check First-Time Abatement eligibility, review the Collection Statute, and identify the optimal combination of relief tools.
  4. Negotiation and filing. We prepare and submit the resolution applications (OIC, installment agreement, penalty abatement, CNC) and negotiate directly with the IRS or Texas Comptroller on your behalf.
  5. Ongoing compliance support. Most resolutions require five years of clean compliance. We help ensure you meet ongoing filing and payment obligations to keep your settlement intact.

Why Texas Residents Choose Clear Start Tax

Clear Start Tax handles Texas federal IRS cases as well as coordination with Texas Comptroller franchise tax and sales tax matters for business owners. We handle cases ranging from sub-,000 balances to multi-hundred-thousand-dollar complex resolutions involving business assets, real estate, and Revenue Officer cases.

Get a Free Texas Tax Relief Consultation

If you owe IRS or Texas state back taxes, the right resolution path depends on your specific debt amount, income, assets, and prior compliance history. A free consultation identifies your best options without obligation.

Call Clear Start Tax at (888) 235-0004 or request a free consultation to start the process today.