Falling behind on taxes or dealing with outstanding debt is a stressor that most Americans will deal with at some point in their lives. With the increased use of credit cards, rising costs of living, and lingering economic pressures, more and more individuals find themselves seeking help from tax and debt relief firms. The industry has seen quite a bit of change over the last few years. In this article, we outline five trends shaping the tax and debt relief industry and dive into what’s causing this growth and change.
1. Increased Debt and Tax Settlements
Overall, the number of debt settlements in the U.S. are rising. These increasing numbers point to an increasing need for debt relief companies nationwide. According to the Federal Reserve Bank of New York, total U.S. household debt reached a record $18.59 trillion as of Q3 2025, with credit card balances alone hitting $1.233 trillion—the highest since tracking began in 1999.
The tax relief industry is also rapidly growing. According to the IRS, the projected gross tax gap for tax year 2022 was $696 billion, with a net tax gap of $606 billion after enforcement and late payments. The numbers don’t lie. With stats like these, it’s certain that a growing number of consumers will look to tax and debt relief companies to help them manage payments in order to settle what they owe.
2. Lasting Effects of Economic Uncertainty
The past several years have brought significant economic shifts that continue to impact household finances. Inflation, rising interest rates, and cost-of-living increases have squeezed budgets across the board. According to Experian, the average American consumer now carries $104,755 in total debt.
This financial pressure means individuals are often left without the means to pay taxes or debts in full. The tax and debt relief industry continues to see more people seeking options as their payments come due. Tax and debt relief companies can stand in the gap and offer relief for clients who need time to recover from financial setbacks.
3. Increased IRS Auditing and Enforcement
The IRS has announced significant plans to increase audit rates over the coming years. According to the IRS Strategic Operating Plan, audit rates for large corporations with assets over $250 million are expected to nearly triple from 8.8% to 22.6% by 2026. Wealthy individuals earning more than $10 million will see audit rates increase from 11% to 16.5%, and large partnerships will face ten times higher audit rates.
With increased funding and AI-driven technology to detect inconsistencies, the IRS is better equipped to identify underreported income and flag high-risk returns. This increase in auditing means a higher likelihood that an individual—or business—is at risk for owing back taxes. If an audit covers several years, and a person owes years of taxes, they’ll almost certainly need to enlist the help of a tax relief service.
4. Virtual Relief Services
If consumers are presented with the choice to make an appointment at an office or conduct a meeting virtually, most of the time, they will opt for the virtual option. The global video conferencing market has grown to over $33 billion in 2024 and is projected to reach $60 billion by 2032, according to Fortune Business Insights. With 86% of business meetings now including at least one virtual participant, remote consultations have become the norm rather than the exception.
The same is true for tax and debt relief services. These companies have the option to offer their services through phone or video conferencing, providing the same high-level relief that their customers require with the convenience they want. By providing a virtual option, relief agencies offer fast and convenient aid. Virtual relief services allow for an improved personal connection while simultaneously catering to their clients’ needs. Clients are more likely to seek out a relief agency if they’re able to receive debt relief services from the comfort and convenience of their own homes.
5. Tax and Debt Relief Financing
Relief agencies exist to help their clients overcome financial obstacles that might be difficult or seem impossible without aid. In fact, trying to DIY debt or back tax payments might actually backfire. If an individual has a history of issues with the IRS, there’s no room for error when filing taxes or filling out paperwork. That’s why it’s so important to have professional relief agents doing the work. Having help from experienced pros makes paying debts or back taxes much less stressful.
A good tax or debt resolution agency knows they must provide their clients with manageable payment options. Working with a financing company like United Consumer Financial Services benefits both the tax relief firm and its customers. Financing allows for customers to make scheduled, low monthly payments, instead of paying for relief services in one lump sum. This allows customers to utilize tax relief services and helps them resolve their debts without worrying about an inability to pay. With little, poor, or even no credit, customers can benefit from quick credit approval to get the help they need.
Resolution agencies also benefit from offering financing. Companies are able to serve a broader range of consumers while improving cash flow and sales numbers. And because financing companies like UCFS pay the tax relief firm directly, there’s no danger of clients defaulting on payments and disrupting profits and income. Financing programs enable relief agencies to offer a wide range of customers the best service while at the same time benefitting their own business. It’s a win-win for all parties!
