Question 1

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

Accepted Answer

Yes, through the IRS Offer in Compromise program, but qualification is strict. The IRS must believe you cannot pay the full amount owed within a reasonable time.

Your financial situation determines eligibility. If you're unemployed, facing serious illness, or your monthly expenses exceed your income, you might qualify. The IRS also considers your asset equity and future earning potential.

We analyze your complete financial picture before recommending this option. Many taxpayers don't qualify for an Offer in Compromise but do qualify for other relief programs that significantly reduce their burden.

Question 2

What happens if the IRS is already garnishing my wages?

Accepted Answer

We can often stop wage garnishments quickly by establishing representation and requesting a Collection Due Process hearing or negotiating an alternative payment arrangement.

Once we contact the IRS on your behalf, they must work with us instead of taking direct action against you. We immediately request a hold on collection activities while we negotiate a solution.

The key is acting fast. Wage garnishments can take up to 75% of your disposable income. Every day you wait costs you money and prolongs the stress on your family.

Question 3

How long does tax resolution typically take in Pennsylvania?

Accepted Answer

Simple cases might resolve in 60-90 days, while complex situations involving multiple tax years or business issues can take 6-12 months or longer.

Pennsylvania cases often involve both federal and state issues, which can extend timelines. The IRS and Pennsylvania Department of Revenue operate independently, so we handle each separately.

Factors affecting timeline include: the complexity of your case, which programs you qualify for, how quickly you provide required documentation, and current IRS processing delays. We keep you informed throughout the entire process.

Question 4

Will tax resolution hurt my credit score?

Accepted Answer

Tax resolution itself doesn't hurt your credit, but the underlying tax problems might already be affecting it. Tax liens appear on credit reports, but we can often negotiate lien withdrawals as part of your resolution.

Once we resolve your tax debt, any federal tax liens can be released or withdrawn. This removes them from your credit report and improves your score over time.

The bigger benefit is stopping the damage. Unresolved tax problems lead to asset seizures, business closures, and financial devastation. Resolution protects your credit by preventing these more serious consequences.

Question 5

Do you handle Pennsylvania state tax problems too?

Accepted Answer

Absolutely. We resolve both federal IRS problems and Pennsylvania Department of Revenue issues, including personal income tax, business taxes, and local earned income tax disputes.

Pennsylvania's tax system is complex. The state has a flat 3.07% income tax, but local municipalities can add their own earned income taxes. Some areas have combined rates approaching 4%.

We understand Pennsylvania's specific tax laws, filing requirements, and collection procedures. Whether you owe the IRS, the state, or both, we handle everything under one roof for maximum efficiency and convenience.

Question 6

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

Accepted Answer

Unfiled returns are actually easier to resolve than most people think, and we handle this situation regularly. The key is filing compliant returns before the IRS files substitute returns for you.

When the IRS files substitute returns, they don't include deductions you're entitled to claim. This creates artificially high tax bills. We prepare accurate returns that reflect your actual tax liability.

We also negotiate penalty abatement for reasonable cause. First-time penalty abatement, financial hardship, and other circumstances can eliminate or reduce penalties substantially. The sooner we address unfiled returns, the more options you have available.

Tax Resolution Edgemere, PA