Question 1

What's the difference between tax preparation and tax resolution services?

Accepted Answer

Tax preparation involves filing your annual returns and ensuring compliance with current tax laws. Tax resolution addresses existing problems with the IRS or state tax authorities—things like unpaid taxes, audits, liens, levies, or unfiled returns from previous years.

Most tax preparers only handle the filing part. Tax resolution requires specialized knowledge of IRS procedures, negotiation tactics, and taxpayer rights. It also requires proper credentials to represent you before tax authorities.

If you're current on your taxes and just need annual filing, basic tax preparation works fine. But if you're dealing with IRS notices, collection actions, or years of unfiled returns, you need resolution services from professionals who specialize in fixing these problems.

Question 2

How much do tax resolution services typically cost in Pennsylvania?

Accepted Answer

Tax resolution fees vary significantly based on the complexity of your case and the amount of work required. Simple cases like setting up payment plans might cost a few hundred dollars, while complex cases involving multiple years of unfiled returns or serious collection actions can cost several thousand.

We provide transparent fee estimates after reviewing your specific situation during the initial consultation. If you decide to move forward, we credit 100% of your consultation fee toward the resolution work. This ensures you're not paying twice for the same analysis.

The key is understanding that professional tax resolution often saves you far more than it costs through reduced penalties, negotiated settlements, and stopped collection actions. Many clients end up paying less to the IRS than they originally owed.

Question 3

Can you help with both federal and Pennsylvania state tax problems?

Accepted Answer

Yes, we handle both federal IRS issues and Pennsylvania Department of Revenue problems. This is important because tax problems often involve both jurisdictions, and you need someone who understands how they interact.

Pennsylvania has its own procedures for collection actions, payment plans, and penalty abatements that differ from federal rules. We're familiar with both systems and can coordinate resolution efforts to avoid conflicts between agencies.

This dual expertise is particularly valuable for Pennsylvania residents because state tax authorities can be just as aggressive as the IRS when it comes to collection actions. Having one firm handle both sides ensures consistent strategy and communication.

Question 4

What happens if I ignore IRS notices and don't take action?

Accepted Answer

Ignoring IRS notices leads to escalating collection actions that become increasingly difficult and expensive to resolve. The IRS starts with letters and notices, then moves to liens against your property, levies on bank accounts, and wage garnishments.

Once collection actions begin, your options become more limited and the costs increase. For example, releasing a tax lien requires additional paperwork and fees that could have been avoided with earlier action.

The IRS also continues adding penalties and interest while you delay, making the total amount owed grow significantly over time. What might have been a manageable payment plan early on can become an overwhelming debt that requires more aggressive resolution strategies like offers in compromise or currently not collectible status.

Question 5

Do you offer payment plans for your tax resolution services?

Accepted Answer

We work with clients to structure payment arrangements that fit their financial situation. Since tax problems often create cash flow issues, we understand that paying large fees upfront isn't always realistic.

Payment options depend on the specific services needed and the timeline for your case. Some situations require immediate action to stop collection activities, while others allow for more flexible payment schedules as work progresses.

During your consultation, we'll discuss both the IRS payment plan options for your tax debt and our fee payment options for the professional services. The goal is finding a solution that resolves your tax problems without creating new financial stress.

Question 6

How long does it typically take to resolve tax problems with the IRS?

Accepted Answer

Resolution timeframes vary significantly based on the type of problem and the IRS's current processing delays. Simple payment plan requests might be approved within 30-60 days, while complex cases involving offers in compromise or audit appeals can take 6-18 months or longer.

The IRS has been experiencing significant delays in processing many types of cases, particularly those requiring manual review. Currently, they're dealing with backlogs that extend normal processing times considerably.

However, we can often provide immediate relief by stopping collection actions while your case is being processed. This gives you breathing room and prevents the situation from getting worse while we work toward a permanent resolution. The key is starting the process as soon as possible rather than waiting for problems to escalate.

Tax Preparation Birchardville, PA