Question 1

How much does tax resolution cost compared to what I owe?

Accepted Answer

Most people are surprised to learn that professional tax resolution often costs far less than trying to handle it themselves. Here's why: the IRS adds penalties and interest every month you don't resolve your problem. Those charges compound quickly and can double or triple what you originally owed. When we negotiate on your behalf, we often get penalties reduced or eliminated entirely. We also stop the clock on additional penalties by getting you into a formal agreement with the IRS. In many cases, the money we save you in penalties and interest more than covers our fees. The real question isn't what resolution costs - it's what not resolving your tax problem will cost you over time. We've seen people turn $10,000 tax debts into $30,000+ nightmares by waiting and hoping the problem would go away.

Question 2

What happens if I can't afford to pay what the IRS says I owe?

Accepted Answer

The IRS has several programs for people who can't pay their full tax debt, but you have to know how to qualify and apply correctly. An installment agreement lets you pay over time - sometimes as little as $25 per month if that's what your budget allows. If you truly can't pay the full amount you owe, you might qualify for an offer in compromise. This lets you settle your tax debt for less than the full amount, sometimes significantly less. But the IRS rejects most offer applications because people don't understand the qualification requirements or make mistakes on the paperwork. There's also currently not collectible status if you're facing genuine financial hardship. This temporarily stops collection actions while you get back on your feet. The key is proving your financial situation with the right documentation and presenting it properly to the IRS.

Question 3

How long does it take to resolve a tax problem?

Accepted Answer

Simple cases like setting up a payment plan can often be resolved in 30-60 days. More complex situations like offers in compromise typically take 6-12 months because the IRS has to thoroughly review your financial situation. The timeline depends on several factors: how complex your case is, whether you have unfiled returns, if you're current on your payments, and how quickly the IRS processes your paperwork. We can give you a realistic timeline once we review your specific situation. What's important to understand is that the clock starts ticking the moment we begin working on your case. Every day you wait is another day of penalties and interest adding to what you owe. Even if resolution takes several months, you're protected from collection actions once we have representation paperwork filed with the IRS.

Question 4

Will the IRS work with me if I try to handle this myself?

Accepted Answer

The IRS will talk to you, but that doesn't mean they'll work with you in your best interest. IRS agents are trained to collect as much money as possible, as quickly as possible. They're not looking out for your financial wellbeing or trying to find the best solution for your situation. Most people don't realize they have rights when dealing with the IRS, or they don't know how to exercise those rights effectively. For example, you have the right to representation, the right to appeal decisions, and the right to request penalty abatements. But if you don't know these rights exist or how to use them, you'll likely end up paying more than necessary. IRS agents also don't always know all the rules and programs available. We've seen agents tell people they don't qualify for certain programs when they actually do. Having professional representation ensures you get access to all available options, not just the ones that are easiest for the IRS to process.

Question 5

What if I haven't filed tax returns in several years?

Accepted Answer

Unfiled returns are actually one of the most serious tax problems you can have because failure to file is a criminal offense. The IRS can prosecute people who willfully don't file returns, especially if it's been several years. The good news is that getting compliant usually resolves the criminal aspect of the problem. We help you file all missing returns, often going back six years or more depending on your situation. Once you're current, we can then work on resolving any taxes you owe. Many people avoid filing because they're afraid of how much they'll owe, but not filing makes everything worse. The IRS can file substitute returns for you that don't include deductions you're entitled to, meaning you'll owe more than necessary. Filing your actual returns, even years late, often reduces what you owe and shows good faith effort to comply.

Question 6

Can the IRS really take my house or business?

Accepted Answer

Yes, the IRS has the legal authority to seize and sell your property, including your home and business assets, to satisfy tax debts. They can also freeze your bank accounts, garnish your wages, and place liens on everything you own. These aren't empty threats - they use these collection tools regularly. However, the IRS typically doesn't jump straight to seizure. They usually start with liens and levies, then escalate if you don't respond. The key is to address the problem before it reaches that point. Once we file representation paperwork, most collection actions stop while we work on a resolution. The IRS also has to follow specific procedures before they can seize property. They have to give you notice and opportunity to resolve the debt first. But don't count on having months to figure this out - IRS collection timelines can move quickly, especially if they think you're trying to hide assets or avoid payment.

Tax Preparation Boyds Mills, PA