Question 1

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

Accepted Answer

Tax preparation is filing your annual returns. Tax resolution is fixing problems that have already developed with the IRS or state tax agencies. Most tax preparers can handle straightforward returns, but when you're dealing with audits, liens, levies, wage garnishments, or years of unfiled returns, you need someone who specializes in resolution.

Tax resolution requires different skills and knowledge than basic tax preparation. It involves negotiating with IRS agents, understanding collection procedures, and knowing which resolution options you actually qualify for. Many problems that seem impossible to resolve actually have solutions—but only if you know what they are and how to pursue them properly.

The biggest mistake people make is trying to handle serious tax problems with a regular tax preparer who doesn't specialize in resolution. It's like asking your family doctor to perform brain surgery.

Question 2

How much does professional tax resolution cost compared to handling it myself?

Accepted Answer

Professional tax resolution typically pays for itself through the penalties and interest you avoid, plus the better resolution terms you can negotiate. The IRS has specific programs and procedures that most taxpayers don't know about—things like penalty abatement, hardship status, and Offer in Compromise settlements.

When you try to handle complex tax problems yourself, you often end up accepting payment plans or settlements that are much worse than what a professional could negotiate. You also risk making mistakes that can make your situation worse. One wrong move on an Offer in Compromise application, for example, can disqualify you from that option entirely.

The cost of professional help is usually a fraction of what you'll save in reduced penalties, better payment terms, or settlement amounts. Plus, you get the peace of mind that comes from knowing it's being handled properly by someone who deals with these situations every day.

Question 3

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

Accepted Answer

Unfiled returns are one of the most common tax problems, and they're also one of the most fixable. The IRS typically requires you to file the last six years of returns to get into compliance, though this can vary depending on your situation.

The key is filing these returns properly and in the right order. If you owe money, there are strategies for minimizing penalties and setting up payment arrangements. If you're due refunds on some years, those can often be applied to years where you owe taxes. Sometimes people are surprised to find they don't owe as much as they feared, or they actually get money back.

The biggest mistake is continuing to put this off. The longer you wait, the more penalties accumulate, and the IRS may eventually file substitute returns for you based on limited information—which almost always results in higher taxes owed than if you filed proper returns yourself.

Question 4

Can you really settle tax debt for less than what I owe?

Accepted Answer

Yes, through the IRS Offer in Compromise program, but it's not as easy as the TV commercials make it sound. The IRS will only accept an offer if they believe it's the most they can reasonably expect to collect from you, or if paying the full amount would create economic hardship.

About 26% of offers are accepted nationally, but experienced tax professionals have much higher success rates because they know how to properly prepare and present these applications. The application process is complex, and one mistake can result in rejection and loss of your application fee.

Before pursuing an Offer in Compromise, there are often other options that might be more appropriate for your situation—like penalty abatement, payment plans, or currently not collectible status. A good tax resolution specialist will evaluate all your options and recommend the best approach for your specific circumstances.

Question 5

How long does it take to resolve IRS problems?

Accepted Answer

The timeline depends on the complexity of your situation and which resolution option you pursue. Simple payment plans can often be set up within a few weeks. More complex cases involving audits or Offer in Compromise applications can take several months to over a year.

However, one of the benefits of professional representation is that collection actions are typically suspended while your case is being worked on. This means no new levies, garnishments, or liens while you're actively working toward a resolution.

The most important thing is getting started. Tax problems don't improve with time—they get worse. Every month you delay means more penalties and interest, and fewer resolution options. Even if the final resolution takes time, having professional representation immediately stops the situation from deteriorating further.

Question 6

What should I bring to my free consultation?

Accepted Answer

Bring any IRS notices or letters you've received, copies of your tax returns for the last few years (if you have them), and any records of payments you've made to the IRS. If you're dealing with a business tax issue, bring your payroll records and any correspondence with the IRS about employment taxes.

Don't worry if you don't have everything—we can help you obtain missing records from the IRS if needed. The most important thing is being honest about your situation so we can give you accurate advice about your options.

Many people put off getting help because they're embarrassed about their tax situation or because they think they need to have all their paperwork organized first. Neither is necessary. Tax problems are more common than you think, and part of our job is helping you figure out exactly what you're dealing with and what needs to be done to fix it.

Tax Preparation Freytown, PA