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Tax Debt Help in Tennessee: IRS Options and Free Clinics

By the Tax Relief Answers editors · Sources checked November 3, 2026 · How we check

The short answer

Tennessee does not tax wages. Its Hall income tax, which applied only to interest and dividends, was repealed for tax periods beginning on or after January 1, 2021, according to the Tennessee Department of Revenue, so an individual's income tax debt is almost always owed to the IRS, and the federal options apply. What people in Tennessee more often owe the state are business taxes such as sales and use tax, franchise and excise tax, business tax and professional privilege tax. IRS Publication 4134 (Rev. 1-2026) lists one Low Income Taxpayer Clinic in Tennessee, in Oak Ridge.

Federal vs state: who to contact for what

If the debt is federal

The IRS options are the same in every state, so this page does not repeat them: an IRS payment plan, an Offer in Compromise, Currently Not Collectible status and first-time penalty abatement. Each of those pages has the current IRS rules, fees and dates. A federal tax lien follows its own rules; see federal tax lien and lien vs levy. You can request each IRS option directly from the IRS.

What Tennessee taxes people owe instead

The Department's Hall income tax page says the Hall tax applied only to interest from bonds and notes and dividends from stock, and that it was repealed for tax periods that begin on January 1, 2021, or later. The Department's tax delinquencies page lists the taxes you can pay through the Tennessee Taxpayer Access Point (TNTAP), including sales and use tax, business tax, franchise and excise tax, and professional privilege tax.

If the debt is owed to the Tennessee Department of Revenue

The same delinquencies page describes the Department's installment payment plan, as of November 2026:

If a plan terminates, all liability is owed at that time and unresolved amounts go to collections immediately. Payment plan questions go to Payment.Plan@tn.gov, (615) 741-4200 or (833) 977-1750. The Department also accepts offer in compromise applications from taxpayers who qualify based on a verifiable inability to pay; applying does not stop collection.

Tennessee tax liens

The Department's installment payment agreement application (Rev. 7-16) states that, under T.C.A. § 67-1-1401 et seq., the Department will file liens on the taxpayer, the business entity and any personal guarantor of the agreement.

Free Low Income Taxpayer Clinics in Tennessee

Low Income Taxpayer Clinics (LITCs) are independent organizations that receive IRS grants and represent people in disputes with the IRS for free or a small fee. IRS Publication 4134 (Rev. 1-2026) says they generally serve people whose income does not exceed 250% of the federal poverty guidelines. The publication describes them as help with IRS disputes, so they are not the channel for a state tax debt. These are the Tennessee clinics it lists; the city is the main office, and many clinics serve a wider area.

Publication 4134 lists each clinic's phone number and languages; the Taxpayer Advocate Service LITC page has the current search tool.

Taxpayer Advocate Service offices in Tennessee

The Taxpayer Advocate Service (TAS) can help, at no cost, people who have not been able to resolve a tax problem with the IRS. Its contact page lists these local offices for Tennessee as of November 2026:

TAS says to open a new case with Form 911 or through its toll-free number, 1-877-777-4778; the local office is for people with an open TAS case who need to reach their advocate after more than 30 days. TAS works on federal tax problems, not state tax debts.

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