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 after things have gone wrong with the IRS.Most tax preparers only work during tax season and only handle current year filings. Tax resolution specialists work year-round helping people with back taxes, audits, liens, levies, and other IRS problems.If you owe money you can't pay, have unfiled returns, or received threatening letters from the IRS, you need resolution services - not just preparation. We handle both, but resolution is where we really make a difference in people's lives.

Question 2

How much does tax resolution cost compared to regular preparation?

Accepted Answer

Tax resolution costs more than basic preparation because it requires specialized expertise and often months of work negotiating with the IRS.However, we often save clients far more than our fees. If we negotiate an offer in compromise that settles $50,000 in debt for $5,000, our fee is a fraction of your savings.We also credit 100% of your consultation fee toward resolution work if you hire us. Many clients end up paying nothing out of pocket after we resolve their cases and recover money from penalties or incorrect assessments.

Question 3

Can you really settle IRS debt for less than what's owed?

Accepted Answer

Yes, through programs like Offer in Compromise, but it's not automatic and most people who try to do it themselves get rejected.The IRS will accept less than full payment if they believe it's the most they can realistically collect from you. This requires proving your financial situation meets their strict criteria.We know exactly what documentation the IRS requires and how to present your case for the best chance of acceptance. We've successfully negotiated settlements for thousands less than what clients originally owed, but every case is different.

Question 4

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

Accepted Answer

The IRS will eventually file returns for you using only the income they know about - with no deductions or credits you're entitled to. This usually results in much higher taxes owed.We can prepare and file your missing returns with all proper deductions, often reducing what you owe significantly. Sometimes clients discover they actually had refunds coming instead of owing money.Getting compliant with unfiled returns is usually the first step in any tax resolution case. Once we know your actual tax liability, we can negotiate the best resolution option for your situation.

Question 5

Do you handle Pennsylvania state tax problems too?

Accepted Answer

Yes, we resolve both federal IRS problems and Pennsylvania Department of Revenue issues. State tax problems can be just as serious as federal ones.Pennsylvania has its own collection powers including wage garnishments and bank levies. They also have different resolution programs and requirements than the IRS.Thompson residents often face local earned income tax complications on top of state and federal issues. We understand how all three systems work together and can resolve problems at every level.

Question 6

How long does it take to resolve a tax problem?

Accepted Answer

Simple cases like setting up payment plans can be resolved in weeks. Complex cases involving offers in compromise or multiple years of unfiled returns can take 6-12 months or longer.The IRS moves slowly, and rushing usually backfires. We focus on getting the best possible outcome, not the fastest one.During the resolution process, we can often stop collection actions like levies and garnishments, giving you breathing room while we work on a permanent solution. Most clients feel relief within the first 30 days even though final resolution takes longer.

Tax Preparation Thompson, PA