New Beginning Tax Solutions — A Fresh Start. A Better Future.
Tax relief services in Austin, TX
Austin, TXAustin-Round Rock-San Marcos Metro

Austin Tax Relief — IRS Help for Austin Residents

Austin is the live music capital of the world and one of the nation's fastest-growing tech hubs — a combination that produces a unique mix of IRS challenges ranging from startup equity taxation to music industry 1099 compliance. Texas has no state income tax, which benefits Austin residents but offers no protection against federal IRS enforcement. Our team provides professional federal tax resolution services to Austin residents throughout Travis, Williamson, and Hays counties — specializing in the tax issues that affect tech workers, musicians, entrepreneurs, and the rapidly expanding Central Texas workforce.

Free, no-obligation consultation for Austin residents — metro population: 2.5M

Free & Confidential

Get Your Free Austin Tax Relief Review

Tell us about your situation. A specialist will contact you within 24 hours.

Free Austin Case Review

Your information is private and confidential.

2.5M

Austin Metro Population

Top 10 US

Startup Ecosystem

Downtown E 8th

Austin IRS Office

None (TX)

State Income Tax

Tax Relief Services in Austin, TX

New Beginning Tax Solutions provides professional IRS tax relief services to residents and businesses in Austin, part of the Austin-Round Rock-San Marcos metropolitan area. With a metro population of 2.5M, Austin is home to thousands of taxpayers who may face IRS collections, liens, levies, audits, and back tax issues. Our team understands the local economy, the industries that drive Austin, and the specific tax challenges that Austin residents encounter.

The IRS maintains a significant enforcement presence across the Austin-Round Rock-San Marcos metro area. Austin taxpayers are subject to the same federal tax code as all Americans — but local economic conditions, industry concentrations, and cost of living all shape how IRS collection actions affect Austin's residents and businesses.

Key Austin Industries

Technology & Startups

SaaS, enterprise software, AI/ML, mobile, venture capital

Music & Entertainment

Live music, recording, festivals, film/TV production

Healthcare

Dell Medical School, Ascension Seton, St. David's, biotech

Higher Education

University of Texas at Austin, ACC, research institutions

Government

State agencies, Capitol complex, federal offices

Real Estate

Residential development, commercial, industrial expansion

Free Austin Case Review

Your information is private and confidential.

IRS Offices Near Austin, TX

Austin residents can visit these IRS Taxpayer Assistance Centers for in-person help. Appointments are required — call the number listed or schedule online at IRS.gov before visiting.

IRS Austin TAC

300 E 8th St, Austin, TX 78701

Phone: 844-545-5640

Hours: Mon–Fri 8:30 AM – 4:30 PM (by appointment)

TX State Tax Agency

Texas Comptroller of Public Accounts

Texas has no personal state income tax, which is an advantage for Austin residents — but it is also a disadvantage: there is no state-level tax refund to intercept for IRS debts, and no state wage withholding to cushion underpayment. The Texas Comptroller administers the franchise tax for businesses formed or operating in Texas. Federal IRS obligations apply in full, regardless of state tax structure.

Visit Texas Comptroller of Public Accounts Website

Common Tax Problems for Austin Residents

While Austin taxpayers face the same IRS code as everyone else, certain issues are more common in the Austin-Round Rock-San Marcos metro area due to the local economy, cost of living, and industry mix.

Startup Equity: RSUs, ISOs & Alternative Minimum Tax Traps

Austin's startup ecosystem is one of the most active outside Silicon Valley, and equity compensation is standard for employees at venture-backed companies. The most dangerous tax trap: exercising Incentive Stock Options (ISOs) creates an AMT preference item equal to the bargain element (fair market value minus exercise price), even if the shares are illiquid and the employee can't sell them. This can generate a five- or six-figure AMT bill with zero cash to pay it. RSU vesting is taxed as ordinary income at vest — the company withholds shares for federal taxes, but that withholding is often insufficient for high-income earners. Cost basis reporting errors on post-IPO sales are endemic. An IRS CP2000 notice for unreported equity compensation income is the single most common tax problem we handle for Austin tech professionals.

Music Industry 1099 Income & Self-Employment Tax Gaps

Austin bills itself as the live music capital of the world, and the city has thousands of working musicians, sound engineers, producers, DJs, and festival crew who earn the bulk of their income as 1099 independent contractors. The self-employment tax (15.3% for Social Security and Medicare on the first dollar of net earnings) often catches musicians by surprise. Common problems: not making quarterly estimated tax payments, not tracking deductible expenses (gear, rehearsal space, mileage between gigs), and failing to file for multiple years because the tax bill is unaffordable. The IRS receives copies of every 1099-NEC and matches them to filed returns — unreported music income triggers automated CP2000 notices with proposed assessments including interest and a 20% accuracy-related penalty.

High-Growth Real Estate & Short-Term Rental Tax Compliance

Austin's real estate market has experienced explosive appreciation, creating tax issues for homeowners, investors, and Airbnb/VRBO operators. Capital gains from home sales: the Section 121 exclusion ($250K single, $500K married) shields most primary residence gains, but Austin homeowners who bought pre-boom may have gains exceeding the exclusion — and vacation homes and investment properties are fully taxable. Short-term rental operators must report income on Schedule C or Schedule E and navigate the 14-day rental rule. Depreciation recapture (Section 1250) applies when selling a property that was depreciated. The IRS receives 1099-K forms from platforms like Airbnb and VRBO — unreported short-term rental income is easily detected.

New Resident Tax Transition: California-to-Austin Relocation

Austin has absorbed tens of thousands of new residents relocating from California and other high-tax states. Many arrive with unresolved IRS issues from their prior state: unfiled returns, unpaid balances, open audits. Moving to Texas doesn't erase those federal obligations — the IRS has nationwide collection authority and will pursue you regardless of where you live. Additionally, California's FTB is aggressive about asserting residency on former residents, and a California residency audit can run concurrently with an IRS examination. If you relocated to Austin with outstanding tax issues, resolve them proactively before the IRS files a lien or levy.

Real Client Results

See How Austin Taxpayers Resolved Their IRS Problems

Browse real success stories — OIC settlements, lien withdrawals, levy releases, penalty abatements, and payment plans that worked for taxpayers across the Austin-Round Rock-San Marcos metro area.

View All Success Stories

Austin Tax Relief — Questions Answered

Where is the IRS office in Austin?
The Austin IRS Taxpayer Assistance Center is at 300 East 8th Street in downtown Austin, inside the federal building. All visits require an appointment — call 844-545-5640 or use the IRS.gov scheduler. Austin is a major metro with a single TAC, so appointments can book out weeks in advance. We can handle your IRS resolution without you ever needing to visit the office.
I work at an Austin tech startup and my RSUs just vested — do I owe taxes now?
Yes. RSUs are taxed as ordinary income at the time of vest (the date the shares are delivered to you), not when you sell them. The value of the shares on the vesting date is reported on your W-2 as income. Your employer typically withholds 22% for federal taxes, but if your marginal rate is 32%, 35%, or 37%, the withholding will be insufficient and you'll owe the difference at filing. Additionally, when you eventually sell, you must report the capital gain (or loss) based on the correct cost basis. If your 1099-B shows a zero or incorrect cost basis — which is common — you'll need to adjust it on Form 8949, otherwise the IRS assumes the entire proceeds are gain.
I'm a musician in Austin — how does the IRS know about my gig income?
Venues and festivals issue Form 1099-NEC for payments over $600 per calendar year. Every 1099-NEC is filed with the IRS, and the agency's Automated Underreporter (AUR) program matches 1099s against your tax return. If you report less income than the sum of your 1099s, you will receive a CP2000 notice — typically 12–18 months after filing. You should also be aware that cash payments below the 1099 threshold are still taxable income that you are legally required to report. We can help musicians who have multiple years of unfiled returns or who are facing a CP2000 audit for unreported 1099 income.
I moved to Austin from California — does the FTB still have a claim on me?
The California Franchise Tax Board is one of the most aggressive state tax agencies in the country and frequently audits former residents. California uses a multi-factor residency test: where you are physically present, where your spouse and children live, where your primary home is, where you're registered to vote, where your vehicles are registered, where your professional licenses are held, and where your financial accounts and advisors are located. If you maintain any significant ties to California — a second home, a business, frequent travel back — the FTB may claim you as a resident and assess California income tax on your worldwide income. An IRS audit that reveals income details can trigger an FTB referral. Our focus is federal IRS resolution; for California state residency disputes, you may need additional state-specific representation.
Does Texas having no state income tax protect me from the IRS?
No. The IRS is a federal agency and its collection authority applies uniformly in all 50 states. Texas having no state income tax means there is no state-level withholding to cushion federal underpayment and no state refund for the IRS to intercept — but it also means your entire paycheck is subject to IRS levy calculations (the IRS wage levy formula uses federal standard deduction and exemptions, unaffected by state taxes). On the positive side, Austin's no-state-tax environment and lower cost of living compared to coastal cities can make your IRS collection financial statement more favorable for an Offer in Compromise or partial-pay installment agreement.

Get Free Tax Relief Help in Austin, TX

Whether you live in downtown Austin or the surrounding Austin-Round Rock-San Marcos metro area, our team can review your IRS situation and explain your options — free, confidential, and with no obligation.

New Beginning Tax Solutions is a private tax resolution company and is not affiliated with the IRS or any government agency. Results vary based on individual circumstances.