Question 1

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

Accepted Answer

Unfiled tax returns create serious problems that get worse every month you wait. The IRS will eventually file substitute returns for you, and they never include deductions or credits that could reduce what you owe.

Meanwhile, penalties and interest keep accumulating on your unpaid taxes. The IRS can also take collection actions like wage garnishment, bank levies, or property liens even if you haven't filed returns.

We help Madison area taxpayers get caught up on all unfiled returns and negotiate with the IRS to reduce or eliminate penalties. Often, we can arrange payment plans that make the entire situation manageable. The sooner you act, the more options you'll have.

Question 2

Can you settle my tax debt for less than the full amount?

Accepted Answer

Yes, through an Offer in Compromise, but you have to qualify based on your financial situation. The IRS will only accept an offer if they believe it's the most they can reasonably collect from you, or if paying the full amount would create financial hardship.

We analyze your income, expenses, assets, and future earning potential to determine if you qualify. If you do, we prepare a comprehensive offer package that demonstrates why the IRS should accept less than the full balance.

While the national acceptance rate is only about 26%, experienced tax professionals have much higher success rates because we know how to present your case properly. The process takes time and requires detailed financial documentation, but the savings can be substantial when it works.

Question 3

How much do professional tax resolution services cost?

Accepted Answer

Our fees depend on the complexity of your tax situation and which services you need. Simple cases with straightforward solutions cost less than complex multi-year problems involving multiple tax types and collection actions.

We provide transparent pricing during your initial consultation and explain exactly what services you're paying for. Most clients find that our fees are less than what they'd pay in additional penalties and interest if they tried to handle things themselves.

The value goes beyond just money saved. You get peace of mind, professional representation, and the time to focus on your life and work while we handle the complex negotiations with tax agencies.

Question 4

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

Accepted Answer

Tax preparation involves filing current year returns and ensuring ongoing compliance. Tax resolution means fixing existing problems like back taxes, IRS audits, liens, levies, wage garnishments, or years of unfiled returns.

Most tax preparers can handle basic return filing, but tax resolution requires specialized knowledge, credentials, and experience dealing with IRS collection procedures. You need someone who can negotiate with tax agents and represent you in complex situations.

We provide both services, which means we can solve your current problems and set up systems to prevent future issues. This comprehensive approach keeps you compliant and protected long-term while addressing immediate concerns.

Question 5

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

Accepted Answer

Resolution timeframes vary depending on your specific situation and which option works best. Simple installment agreements might be approved in a few weeks, while Offers in Compromise typically take 6-12 months or longer.

The IRS works at their own pace, but professional representation usually speeds up the process because we know how to prepare complete packages that don't get rejected for missing information or procedural errors.

During the resolution process, we handle all IRS communication and provide regular updates on progress. Most importantly, once we're representing you, the IRS must work through us instead of contacting you directly, which eliminates stress while we work toward resolution.

Question 6

Do I need professional help with Pennsylvania state tax problems?

Accepted Answer

Pennsylvania has its own tax collection procedures separate from federal IRS issues, and the state can be just as aggressive about collecting unpaid taxes. With Pennsylvania's 3.07% personal income tax and various business tax requirements, problems can develop quickly.

We handle both Pennsylvania Department of Revenue issues and federal IRS problems simultaneously. This is especially important for small business owners who might face issues with sales tax, withholding taxes, or corporate income tax compliance.

Managing both state and federal tax problems on your own is overwhelming and risky. Professional representation ensures nothing gets overlooked and gives you the best chance of favorable resolutions with both agencies while protecting your rights throughout the process.

Tax Preparation Madison, PA