Question 1

How much does tax resolution cost in Pennsylvania?

Accepted Answer

Tax resolution costs vary significantly based on the complexity of your case and which services you need. Simple installment agreement setups typically cost less than complex offer in compromise cases that require extensive financial documentation and negotiation.We have updated our consultation policy due to increased demand. Consultations now have a fee, but if you engage our services, we credit 100% of your consultation fee toward the resolution work. This ensures you're working with people who are serious about getting results, not just collecting consultation fees.The key is understanding that professional tax resolution often saves you far more than it costs. When you factor in penalty reductions, interest abatements, and avoiding more serious collection actions like asset seizure, the investment in professional help typically pays for itself many times over.

Question 2

What happens if I haven't filed taxes in several years?

Accepted Answer

Unfiled tax returns create a serious situation that gets worse the longer you wait. The IRS can file substitute returns for you based on incomplete information, which almost always results in higher taxes owed than if you file proper returns yourself.The good news is that unfiled returns can be resolved systematically. We start by determining which years actually require filing based on your income levels. Then we prepare accurate returns using all available deductions and credits to minimize what you owe.Filing multiple years of back returns simultaneously, combined with penalty abatement requests and payment plan negotiations, often results in manageable resolution. The IRS is generally willing to work with taxpayers who take proactive steps to become compliant, especially when you're represented by professionals who know how to present your case effectively.

Question 3

Can the IRS really take my house or business?

Accepted Answer

Yes, the IRS has broad collection powers including the ability to seize real estate and business assets, but they don't jump straight to asset seizure. There's usually a progression of collection activities that gives you opportunities to resolve the situation first.The process typically starts with notices and demands for payment, then moves to liens (which protect the government's interest in your property), then levies (which actually seize assets or income). Understanding where you are in this process is crucial for determining your options.Asset seizure is expensive and time-consuming for the IRS, so they prefer to work out payment arrangements when possible. Professional representation can often halt collection activities while negotiating a resolution. The key is acting before the situation escalates to the point where your assets are actually at risk.

Question 4

How long does tax resolution take in Pennsylvania?

Accepted Answer

Tax resolution timelines vary dramatically depending on which type of resolution you're pursuing and how quickly you can provide required documentation. Simple installment agreements might be approved within 30-60 days, while complex offer in compromise cases can take 6-24 months.The IRS has specific processing timeframes for different types of applications, but these are often extended if they need additional information or if your case requires review by multiple departments. Having professional representation helps ensure applications are complete and properly documented from the start, which reduces delays.Some resolution options provide immediate relief even while the case is pending. For example, filing an offer in compromise typically stops most collection activities during the review period. This gives you breathing room to get your finances organized while the IRS considers your case.

Question 5

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

Accepted Answer

Tax preparation focuses on filing current year personal tax returns or small business tax preparation accurately and on time. Tax resolution deals with problems from past years - unfiled returns, unpaid taxes, IRS notices, audits, and collection actions.While many tax preparers can handle straightforward current year filings, tax resolution requires specialized knowledge of IRS procedures, collection alternatives, and negotiation strategies. It's the difference between preventing problems and solving existing ones.Tax resolution also involves ongoing communication with IRS agents, understanding complex regulations around offers in compromise and payment plans, and knowing how to present financial information in ways that support your case. This specialized expertise is why many taxpayers who try to handle IRS problems themselves end up making their situations worse.

Question 6

Do I qualify for an Offer in Compromise?

Accepted Answer

Offer in Compromise qualification depends on your ability to pay, income, expenses, and asset equity. The IRS uses specific formulas to calculate your "reasonable collection potential" - essentially what they believe they could collect from you over time through normal collection methods.You might qualify if you can demonstrate that paying the full amount would create economic hardship, if there's legitimate doubt about how much you actually owe, or if exceptional circumstances make full payment unfair or inequitable.The application process is complex and requires detailed financial documentation. The IRS rejects about 60% of offers, often because applicants don't understand the qualification criteria or don't present their financial information properly. Professional evaluation of your situation before applying significantly improves your chances of acceptance and helps avoid wasting time on applications that won't be approved.

Tax Preparation Clifford, PA