Nobody wants to butt heads with the Internal Revenue Service, especially if you owe them money.

That's one creditor you want to pay off as quickly as possible.

Some companies – so-called "tax relief" or "tax settlement" firms – claim they can step in on your behalf to petition the IRS to remove penalties and interest from your tax debt.

But be careful before you hire any of them because negotiating with the IRS is a delicate process, and you want to ensure that the company will actually go to bat for you before and is honest about what it can deliver.

Tina and Robert Woodard of Wiley sought out American Tax Relief in Beverly Hills, Calif., six months ago to help them resolve a $59,085 debt to the IRS.

Mrs. Woodard said she responded to American Tax Relief's television and radio advertisements. Its Web site at www.100save.com says the company will "settle tax debt for a fraction of the debt, stop wage garnishment with our tax help, remove penalties, interest and tax lien" and "stop bank levy, tax levy and property seizures."

The Woodards said they paid American Tax Relief $5,500 and gave the firm power of attorney to act on their behalf in tax matters.

They have seen no results, Mrs. Woodard said.

In fact, they face tax liens, and their tax bill has ballooned to $67,053, thanks to interest and penalties, she said.

"The stress level this has caused is beyond outrageous," Mrs. Woodard said.

They have revoked the power of attorney given to American Tax Relief and are working with the IRS and enrolled agent Eric Hoefnagel to try to resolve their tax debt. Enrolled agents are tax professionals who can represent clients before the IRS.

Mrs. Woodard said they accumulated back taxes because her husband, who managed their finances, didn't pay estimated taxes and file tax returns for 2004, 2005 and 2006.

She said they are now current on filing the returns.

The Woodards hope to obtain what's called an "offer in compromise" from the IRS, in which the agency agrees to accept less than the full tax bill under certain circumstances.

Officials of American Tax Relief didn't return repeated telephone calls and told me through a company receptionist to stop calling.

Many consumers have filed complaints about the company.

The Better Business Bureau of the Southland in Southern California has given the company an "F" rating.

"Complainants generally allege that the company did not provide the tax relief they promised or advertised," the BBB said in a company report. "Some customers said that they were told they qualified for an offer in compromise or for a specific amount of tax relief, but when either did not materialize, the company rejected their requests for a refund."

The New York City Department of Consumer Affairs sued American Tax Relief in 2006, accusing the company of sending deceptive advertising to consumers and making exaggerated claims.

The city settled with the company but declined to release details.

IRS officials said they can neither confirm nor deny whether they're investigating American Tax Relief. That's a standard response from federal agencies.

But the IRS warns consumers of promoters' claims that tax debts can be settled for "pennies on the dollar" through an offer in compromise.

"Such promoters make money by inappropriately advising indebted taxpayers to file an application for an offer in compromise with the IRS, promising unrealistic results, even when the taxpayers do not meet the requirements of the program," the IRS said in a warning to taxpayers. "An offer in compromise may be considered only after other payment options have been exhausted."

Taxpayers who need help with tough, ongoing tax problems should contact the IRS' Taxpayer Advocate Service. That's an independent office that reports directly to Congress and helps taxpayers resolve ongoing issues with the IRS.

The phone number in Dallas is 214-413-6500.