Question 1

What should I do if I received an IRS notice about unpaid taxes?

Accepted Answer

Don't ignore it, but don't panic either. IRS notices have specific deadlines that you must meet to protect your rights, so the first step is understanding exactly what type of notice you received and when you need to respond.

Many notices can be resolved without going through the full collection process if you act quickly. Sometimes it's a simple mistake that can be corrected, or you might qualify for penalty abatement that significantly reduces what you owe.

The worst thing you can do is nothing. The IRS has extensive collection powers, and they will use them if you don't respond. But with proper representation, most tax problems can be resolved in a way that protects your assets and fits your budget.

Question 2

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

Accepted Answer

Professional tax resolution typically costs a fraction of what you'll save through penalty abatements, payment plan negotiations, and stopping the accumulation of interest and penalties. Most clients save far more than they pay in fees.

The cost varies depending on the complexity of your case and how much work is required. Simple installment agreements cost less than complex offers in compromise that require extensive financial analysis and negotiation.

We provide transparent fee structures during your free consultation, so you know exactly what to expect. Many clients find that the peace of mind and protection from collection actions is worth the investment, even beyond the financial savings.

Question 3

Can you stop the IRS from taking my wages or bank account?

Accepted Answer

Yes, in most cases we can stop or prevent IRS collection actions like wage garnishments and bank levies. The key is acting quickly before the IRS moves forward with collection.

If you haven't received a final notice yet, we can often prevent collection actions by setting up a payment arrangement or demonstrating that collection would create financial hardship. Even if collection has already started, we can request releases in many situations.

The IRS is required to work with taxpayers who are making good faith efforts to resolve their tax debt. With proper representation, you can usually avoid the most aggressive collection actions while we work out a reasonable solution.

Question 4

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

Accepted Answer

Tax preparation focuses on filing your current year returns correctly and on time. Tax resolution deals with problems from past years, IRS collection actions, audits, and situations where you owe more than you can pay.

Most tax preparers aren't trained to handle complex IRS problems like liens, levies, or offers in compromise. These situations require specialized knowledge of tax law, IRS procedures, and negotiation strategies that go far beyond basic tax preparation.

If you just need your taxes filed, a regular preparer is fine. But if you're dealing with IRS problems, collection notices, or tax debt you can't afford, you need someone who specializes in tax resolution. The stakes are too high to work with someone who only handles routine tax preparation.

Question 5

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

Accepted Answer

Simple payment arrangements can often be set up within 30-60 days. More complex cases like offers in compromise or currently not collectible status can take 6-12 months or longer, depending on IRS processing times and the complexity of your financial situation.

The timeline also depends on how quickly you provide the required documentation and respond to IRS requests. Cases move faster when clients are organized and responsive to information requests.

While resolution takes time, we can often provide immediate relief by stopping collection actions and penalties from accumulating. This gives you breathing room while we work through the formal resolution process.

Question 6

Do you help with Pennsylvania state tax problems too?

Accepted Answer

Yes, we handle both federal and Pennsylvania state tax issues. Many Tobyhanna residents have problems with both since Pennsylvania has its own income tax requirements and collection procedures that work alongside federal obligations.

Pennsylvania Department of Revenue has its own collection powers and procedures that are different from the IRS. They can also place liens, garnish wages, and seize assets for unpaid state taxes. We know how to work with both agencies simultaneously.

Since Tobyhanna Township also imposes a 1% earned income tax, some clients have local tax issues as well. We coordinate resolution efforts across all jurisdictions to make sure you're fully compliant and protected from collection actions at every level.

Tax Preparation Tobyhanna, PA