Question 1

How do I know if I qualify for tax debt settlement?

Accepted Answer

Qualification depends on your ability to pay, not just your desire to pay less. The IRS looks at your income, expenses, assets, and overall financial situation.If paying your full tax debt would create genuine financial hardship, you might qualify for an Offer in Compromise. The IRS typically accepts offers when the amount represents the most they can reasonably expect to collect.Most taxpayers with debt under $50,000 and income below $100,000 have the best chances, but every situation is unique. We analyze your specific circumstances to determine which programs make sense for your case.

Question 2

What happens to penalties and interest while resolving my case?

Accepted Answer

Interest continues to accrue on your tax debt during the resolution process, but collection activities typically stop once we submit your application. This means no new wage garnishments or bank levies while your case is being reviewed.Penalties might be eligible for abatement if you can demonstrate reasonable cause for non-compliance. Common reasons include serious illness, natural disasters, or reliance on incorrect professional advice.In some cases, we can get both penalties and interest reduced or eliminated entirely as part of your resolution. The key is presenting your case properly with the right documentation and legal arguments.

Question 3

How long does the tax resolution process take?

Accepted Answer

Simple payment plans can be approved within 30-60 days. More complex cases like Offers in Compromise typically take 6-12 months, sometimes longer if appeals are needed.The IRS has improved processing times in 2024 with enhanced online tools and streamlined procedures, but thoroughness matters more than speed. Rushing through the process often leads to rejections that create more delays.We keep you updated throughout the process and handle all communication with the IRS. Most clients find the peace of mind worth the wait, especially knowing their case is being handled properly.

Question 4

Can you stop wage garnishments and bank levies immediately?

Accepted Answer

We can often stop active collection actions quickly by submitting the appropriate applications and documentation. Once the IRS receives certain types of resolution requests, they're required to suspend collection activities.For wage garnishments, we typically contact your employer and the IRS simultaneously to halt the garnishment while your case is being reviewed. Bank levies are trickier because they happen quickly, but we can prevent future levies.The key is acting fast. The sooner you start the resolution process, the more options we have to protect your assets and income from IRS collection actions.

Question 5

What's the difference between legitimate tax relief and scams?

Accepted Answer

Legitimate tax relief companies never guarantee specific outcomes or claim everyone qualifies for "pennies on the dollar" settlements. We also don't demand large upfront fees before doing any work on your case.Real tax professionals explain your actual options based on IRS guidelines, not marketing promises. We have proper credentials like Enrolled Agent status or CPA licenses, and we're transparent about costs and realistic timelines.Scam companies often use high-pressure sales tactics, make outrageous claims about settling debts for tiny amounts, and disappear after collecting their fees. Always verify credentials and get everything in writing before paying anyone.

Question 6

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

Accepted Answer

You can apply for IRS programs yourself using their online tools and forms. The IRS provides detailed instructions and even has a pre-qualifier tool for Offers in Compromise.However, professional representation significantly improves your chances of approval. Tax professionals understand which programs you're most likely to qualify for and how to present your case effectively.More importantly, we handle all communication with the IRS, which means you don't have to deal with collection agents or navigate complex bureaucracy. For most people, the peace of mind and improved success rates make professional help worthwhile.

Tax Resolution Creamton, PA