Question 1

How much does tax resolution cost compared to what I owe?

Accepted Answer

Tax resolution fees are typically a fraction of what you'd pay if you tried to handle the debt on your own. Most clients save significantly more than they pay in professional fees.

The exact cost depends on the complexity of your case and how much work is required. Simple cases might involve just a few hours of work, while complex business situations could require extensive negotiations and documentation. During your initial consultation, you'll get a clear estimate based on your specific situation.

What matters most is the total outcome. If you owe $50,000 but can settle for $15,000 through an offer in compromise, paying a few thousand in professional fees makes financial sense. The key is working with tax preparers who are transparent about costs upfront and focused on getting you the best possible resolution.

Question 2

Can you help with both federal and Pennsylvania state tax problems?

Accepted Answer

Yes, our tax resolution services cover both federal IRS issues and Pennsylvania state tax problems. Many people don't realize that state tax agencies can be just as aggressive as the IRS when it comes to collection actions.

Pennsylvania has its own set of tax laws, penalties, and resolution programs. The state can place liens on your property, levy bank accounts, and garnish wages just like the federal government. Having representation that understands both systems is crucial.

For Pike County residents, this is especially important because you're dealing with multiple tax jurisdictions - federal, state, and potentially local taxes depending on your situation. We can coordinate resolution efforts across all these levels, ensuring nothing falls through the cracks while you're focusing on one particular problem.

Question 3

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

Accepted Answer

Unfiled tax returns are one of the most common tax problems, and they're also one of the most fixable. The IRS and Pennsylvania both have procedures for getting caught up on back taxes, even if you're several years behind.

The first step is preparing and filing all missing returns. This stops the failure-to-file penalties from continuing to accrue and gives you a clear picture of what you actually owe. Often, people discover they owe less than they feared, especially if they're entitled to refunds in some years.

Once all returns are filed, you can pursue resolution options like payment plans or offers in compromise. The IRS is generally more willing to work with taxpayers who are current on their filing obligations, so getting caught up on paperwork is usually the first priority in any tax resolution strategy.

Question 4

How long does the tax resolution process typically take?

Accepted Answer

Simple cases can be resolved in 30 to 90 days, while complex situations involving multiple years or business taxes might take six months to a year. The timeline depends on what needs to be accomplished and how quickly the IRS or state agencies respond.

Payment plan negotiations are usually the fastest resolution option. If you can afford monthly payments and your paperwork is in order, you might have an agreement in place within a few weeks. Offers in compromise take longer because they require extensive financial documentation and review.

The important thing is that collection actions typically stop once you're in active resolution negotiations. This means no new liens, levies, or garnishments while your case is being worked out. You get breathing room to address the problem properly instead of making desperate decisions under pressure.

Question 5

Do you work with small businesses or just individual taxpayers?

Accepted Answer

We work with both individuals and small businesses. Business tax problems are often more complex, but they're also more negotiable because businesses typically have more resolution options available.

Small businesses in Pike County face unique challenges, especially seasonal businesses tied to tourism and outdoor recreation. Cash flow problems can make it difficult to keep up with quarterly estimated taxes, payroll tax deposits, and sales tax obligations. When problems develop, they can escalate quickly.

Business tax resolution might involve negotiating payment plans for payroll taxes, resolving sales tax issues with Pennsylvania, or addressing income tax problems for the business entity and its owners. The approach depends on your business structure, the types of taxes involved, and your ability to maintain compliance going forward.

Question 6

What happens if I can't afford the payment plan they offer?

Accepted Answer

If you can't afford the initial payment plan offer, you have several options. The IRS and Pennsylvania both have hardship programs for taxpayers who genuinely cannot pay their tax debts without creating financial distress.

Currently Not Collectible status stops collection actions when you can demonstrate that paying the tax debt would prevent you from meeting basic living expenses. This isn't permanent, but it gives you time to improve your financial situation without harassment from tax agencies.

Offers in compromise allow you to settle tax debts for less than the full amount owed if you can prove you'll never be able to pay the full debt. This requires extensive financial documentation, but it can result in significant savings for qualifying taxpayers. Professional representation is especially valuable for these more complex resolution options.

Tax Preparation Pecks Pond, PA