Question 1

What happens if I can't afford to pay my full tax debt right now?

Accepted Answer

You have several options, and the right choice depends on your specific financial situation. The most common solution is an installment agreement, where we negotiate monthly payments you can actually afford based on your income and necessary expenses.

For people facing serious financial hardship, there's the offer in compromise program. This allows you to settle your tax debt for less than the full amount owed, but you have to prove that paying the full debt would create genuine financial hardship. The IRS looks at your income, expenses, and asset equity to determine what you can reasonably pay.

If you're temporarily unable to pay anything, we might be able to get your account placed in currently not collectible status. This stops collection activities while you get back on your feet financially. The key is acting before the IRS starts garnishing wages or seizing assets, because once that happens, your options become more limited.

Question 2

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

Accepted Answer

The timeline varies significantly based on your specific situation and which resolution option works best for you. Simple installment agreements can often be set up within a few weeks if your financial documentation is straightforward.

More complex cases take longer. Offer in compromise applications typically take 6-12 months because the IRS does a thorough financial investigation. Audit appeals can take even longer, especially if we need to gather extensive documentation or if your case involves multiple tax years.

What's important to understand is that we can usually get collection activities suspended while we're working on your resolution. This means no new wage garnishments, bank levies, or asset seizures while we're negotiating your case. So even though the process takes time, you get immediate relief from the most stressful collection actions.

Question 3

Will working with a tax resolution service hurt my credit score?

Accepted Answer

Tax resolution itself doesn't hurt your credit score. In fact, resolving tax problems usually helps your financial situation because you're eliminating a major debt and stopping the accumulation of penalties and interest.

Tax liens used to appear on credit reports, but the major credit bureaus stopped including most tax liens in 2018. However, unresolved tax problems can still affect your ability to get loans because lenders can search public records and find information about tax liens and judgments.

The sooner you resolve your tax problems, the sooner you can start rebuilding your financial life. Unresolved tax debt doesn't just go away – it grows with penalties and interest, and the IRS collection powers are much stronger than regular creditors. Getting your tax situation cleaned up removes that uncertainty and lets you focus on moving forward.

Question 4

What's the difference between a tax lien and a tax levy in Pennsylvania?

Accepted Answer

A tax lien is the government's legal claim against your property. It's their way of securing their interest in your assets, but they don't actually take anything yet. The lien becomes public record and can prevent you from selling real estate, getting loans, or completing other financial transactions.

A tax levy is when they actually seize your property or assets. This could mean garnishing your paycheck, emptying your bank account, or taking and selling your car, house, or business equipment. A levy is the enforcement action that comes after a lien if the tax debt isn't resolved.

Pennsylvania is particularly aggressive about tax collection at both the state and local levels. Wayne County can move quickly from unpaid property taxes to tax sales, and the state has strong collection powers for income and business taxes. The key is addressing tax problems before they escalate from liens to levies, because once assets are seized, your options for negotiation become much more limited.

Question 5

Do I really need professional help, or can I handle this myself?

Accepted Answer

You can try to handle tax problems yourself, but the process is complex and the stakes are high. The IRS has specific procedures, deadlines, and documentation requirements. One mistake or missed deadline can cost you thousands of dollars or eliminate resolution options that could have saved you money.

Tax professionals understand which programs you qualify for and how to present your case effectively. We know how to communicate with IRS agents, what documentation they need, and how to structure payment proposals that are likely to be approved. We also understand the appeals process if your initial request is denied.

The IRS has collection powers that regular creditors don't have – they can garnish wages and seize assets without going to court first. When you're dealing with that level of authority, having experienced representation isn't just helpful, it's essential for protecting your rights and getting the best possible outcome for your situation.

Question 6

What should I bring to my free consultation appointment?

Accepted Answer

Bring any correspondence you've received from the IRS, Pennsylvania Department of Revenue, or local tax authorities. This includes notices, letters, and any legal documents. Also bring copies of your tax returns for the past few years, even if some weren't filed on time or if you're missing some years entirely.

Financial documents help us understand your current situation and what you can afford. This includes recent pay stubs, bank statements, mortgage or rent payments, and records of other monthly expenses. For business owners, bring profit and loss statements, payroll records, and any business tax returns.

Don't worry if your paperwork isn't perfectly organized. We've worked with people who brought everything in a shoebox and others who had detailed spreadsheets. What matters is getting started on resolving your tax problems, not having perfect documentation. We can help you figure out what's missing and how to get the information we need.

Tax Preparation Hollisterville, PA