Question 1

Can I really settle my IRS debt for less than I owe?

Accepted Answer

Yes, through the Offer in Compromise program, eligible taxpayers can settle their tax debt for significantly less than the full amount owed. Some taxpayers reduce their debt by 90% or more. However, qualification requires meeting strict IRS criteria. The IRS accepts offers when they determine you can't pay the full amount within the collection period, or when paying would create economic hardship. You'll need to provide detailed financial information proving your inability to pay. Having professional representation dramatically improves your chances of acceptance since improperly prepared offers get rejected immediately.

Question 2

What happens if I owe more than $50,000 to the IRS?

Accepted Answer

You can still get relief even if you owe more than $50,000. While streamlined installment agreements are limited to debts under $50,000, you have several options for larger debts. You can make a partial payment to reduce your balance below the $50,000 threshold, qualifying you for streamlined processing. Alternatively, you can pursue a regular installment agreement, which requires more financial documentation but offers similar payment plan benefits. Offers in Compromise are also available regardless of the debt amount, as long as you meet the financial hardship requirements.

Question 3

Will the IRS really stop trying to collect while my case is being resolved?

Accepted Answer

Yes, once we file proper representation paperwork and begin negotiating your case, the IRS typically suspends collection activities. This means no more wage garnishments, bank levies, or asset seizures while we work on your resolution. However, this protection isn't automatic—it requires proper filing of representation forms and active case management. The IRS will also expect you to stay current on any new tax obligations while resolving old debts. This is why having experienced representation is crucial for maintaining this protection throughout the process.

Question 4

How long does it take to resolve an IRS tax debt case?

Accepted Answer

Resolution timeframes vary depending on your chosen solution and case complexity. Streamlined installment agreements can be approved within 30-60 days. Offers in Compromise typically take 6-12 months for the IRS to review and decide. More complex cases involving multiple tax years, business taxes, or appeals can take longer. However, remember that collection activities are generally suspended while your case is being processed. The key is starting the process immediately—every day you wait, interest and penalties continue accumulating on your debt.

Question 5

Do I really need professional help or can I handle this myself?

Accepted Answer

While you can technically handle IRS matters yourself, the success rates are dramatically different. Taxpayers representing themselves often accept the first payment plan offered, which may not be the most favorable option available. Professional representation brings several advantages: we know which relief programs you qualify for, how to prepare applications properly, and how to negotiate better terms. We also handle all IRS communication, removing the stress and intimidation factor. Most importantly, improperly prepared applications get rejected, wasting months and allowing more interest and penalties to accumulate.

Question 6

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

Accepted Answer

Unfiled returns are actually common and completely resolvable. The IRS requires you to be current on all filings before approving most relief programs, but this doesn't disqualify you from getting help. We can prepare and file all missing returns, often discovering refunds or reducing balances through proper deductions and credits you missed. Sometimes unfiled returns show you owe less than the IRS estimated, or even that you're due refunds. Once all returns are filed, you become eligible for the full range of Fresh Start Program options. The sooner we start, the sooner you can access these relief programs.

IRS Fresh Start Program Twin Lakes, PA