Question 1

How much do tax preparers charge for IRS problem resolution?

Accepted Answer

Our fees depend on your case complexity, but we always start with a free consultation so you know exactly what you're facing before spending anything. Simple payment plan negotiations might run a few hundred dollars, while complex Offers in Compromise can cost several thousand.

Here's what matters: we're completely transparent about costs upfront, we don't charge until we start working your case, and most clients save far more in penalties and interest than they pay in professional fees. We also offer payment plans because we understand you're already dealing with financial pressure.

The real question isn't what professional financial advice costs - it's what doing nothing costs. IRS penalties and interest compound daily, and collection actions can destroy your credit and drain your accounts faster than you think.

Question 2

Can you really stop wage garnishment and bank levies?

Accepted Answer

Absolutely, but timing is critical. Once we establish representation with the IRS, we can often get levies released and stop ongoing garnishments. However, the IRS needs to see you're working toward a genuine solution, not just trying to delay the inevitable.

We immediately file the necessary paperwork to halt collection actions while negotiating your resolution. If you qualify for financial hardship status, we can get even more aggressive relief. For payment plans, we structure them so the IRS agrees to suspend collection activities.

The key is acting fast. The longer you wait, the more damage gets done to your finances and credit. But even if they've already started garnishing wages or freezing accounts, we can usually get those actions reversed once we have a solid resolution in place.

Question 3

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

Accepted Answer

Tax preparation is filing your annual returns - the basic service most people think of as "doing taxes." Tax resolution is fixing serious problems with the IRS like back taxes, audits, liens, levies, and years of unfiled returns.

Most tax preparers can handle straightforward personal tax returns but lack the expertise for complex IRS problems. They might prepare your current year return, but they can't negotiate with revenue agents, represent you in audits, or structure Offers in Compromise.

Tax resolution requires specialized knowledge of IRS procedures, advanced negotiation skills, and often requires licensing as an Enrolled Agent or tax attorney. It's a completely different skill set from basic small business tax preparation or individual return filing.

Question 4

How long does it take to resolve IRS problems?

Accepted Answer

Simple cases like payment plan setup can resolve in a few weeks. Complex cases involving Offers in Compromise or multiple years of unfiled returns typically take six months to over a year.

The IRS moves at their own pace, especially during busy seasons. They have specific procedures and timeframes they follow, and trying to rush them usually backfires. However, we can often stop collection actions immediately while the resolution is pending.

What matters most is starting the process now. Every day you wait, penalties and interest keep accumulating. Even if the final resolution takes months, you get immediate relief from collection pressure and peace of mind knowing you have professional representation.

Question 5

Do I qualify for an Offer in Compromise?

Accepted Answer

Offers in Compromise let you settle tax debt for less than the full amount, but the IRS only accepts about 26% of applications. You must prove you genuinely can't pay the full amount and are unlikely to be able to pay in the reasonable future.

The IRS examines your income, necessary expenses, asset equity, and future earning potential. If you have significant assets or steady income that could cover your tax debt over time, you probably won't qualify. But if you're facing legitimate financial hardship, an OIC might be your best option.

We analyze your complete financial picture during our free consultation to determine if you're a strong candidate. There's no point applying if you won't qualify - it just wastes valuable time and money while your debt continues growing.

Question 6

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

Accepted Answer

The IRS can file substitute returns for you, but they won't include deductions or credits you're entitled to - meaning you'll owe far more than necessary. They also assess failure-to-file penalties for each missing year, and those penalties compound aggressively over time.

We handle unfiled returns by preparing all missing years and filing them in the proper sequence. Often we can significantly reduce your total tax liability by claiming legitimate deductions the IRS didn't include in their substitute returns.

The key is getting current on all filings before attempting to negotiate any resolution. The IRS won't discuss payment plans or other relief options until you're compliant with filing requirements. But once everything's properly filed, we can pursue penalty abatement and other strategies to reduce what you actually owe.

Tax Preparation North Water Gap, PA