Question 1

How long does it take to resolve tax debt in Pennsylvania?

Accepted Answer

Most tax resolution cases take 3-6 months to fully resolve, but we can often stop collection actions within days of starting your case. The timeline depends on which resolution method you qualify for and how quickly the IRS or Pennsylvania Department of Revenue responds to our proposals.

Offers in compromise typically take the longest—sometimes 6-12 months—because they require extensive financial documentation and review. Payment plans and currently not collectible status can often be approved much faster, sometimes within 30-60 days.

The important thing is that we start protecting you immediately. Even while we're negotiating your long-term solution, we work to halt wage garnishments, prevent bank levies, and stop additional penalties from accumulating.

Question 2

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

Accepted Answer

Yes, through the IRS Offer in Compromise program, but only if you meet strict qualification requirements. The IRS will accept less than you owe if they determine you can't pay the full amount based on your income, expenses, and asset equity.

Pennsylvania also has settlement options, though they're more limited than federal programs. The key is proving that paying the full amount would create genuine financial hardship or that collection would be unfair due to exceptional circumstances.

We've helped Lanesboro residents settle six-figure tax debts for thousands instead of hundreds of thousands. But we're honest about your chances—if you can afford to pay the full amount, the IRS won't accept a settlement offer. This isn't about gaming the system; it's about using legitimate programs for people facing real financial hardship.

Question 3

What happens if I can't afford any payment plan?

Accepted Answer

If you genuinely can't afford to pay anything, you might qualify for Currently Not Collectible (CNC) status with the IRS. This temporarily stops all collection actions while you're experiencing financial hardship.

To qualify for CNC status, we have to prove that paying your tax debt would prevent you from meeting basic living expenses like housing, food, and transportation. The IRS has specific allowable expense standards we use to build your case.

Pennsylvania has similar hardship provisions, though they're handled differently than federal cases. While you're in CNC status, penalties and interest still accrue, but the IRS won't garnish your wages or levy your bank accounts. This gives you breathing room to get back on your feet financially.

Question 4

Will tax resolution hurt my credit score more than it already has?

Accepted Answer

Tax resolution typically helps your credit score over time, especially if we can get tax liens removed. While the IRS doesn't directly report tax debt to credit agencies, tax liens become public records that credit reporting companies pick up and include in your credit report.

When we successfully resolve your tax debt, we also work to get lien releases filed with the county prothonotary's office. Once liens are satisfied, you can request that credit bureaus remove them from your credit report, which often results in significant score improvements.

The alternative—letting tax problems continue—usually leads to more liens, potential asset seizure, and ongoing financial stress that makes it harder to rebuild your credit. Most of our clients see their credit scores improve within 6-12 months of resolving their tax issues.

Question 5

Do I need a lawyer or can a tax resolution company handle this?

Accepted Answer

You need someone with proper credentials and experience, whether that's a tax attorney, enrolled agent, or CPA. Avoid companies that make unrealistic promises or charge huge upfront fees before doing any work on your case.

Licensed tax professionals can represent you before the IRS and state revenue departments, negotiate on your behalf, and protect your rights throughout the process. We have the credentials and experience to handle complex cases that unlicensed companies can't touch.

In Pennsylvania, tax resolution often involves both federal and state issues simultaneously. You need someone who understands both systems and can coordinate your resolution strategy across multiple agencies. This isn't the time to work with someone who learned tax law from YouTube videos.

Question 6

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

Accepted Answer

Unfiled returns are actually easier to deal with than most people think, and filing them is usually the first step in any tax resolution strategy. The IRS and Pennsylvania Department of Revenue are much more willing to work with you once you're compliant with filing requirements.

We help you gather the necessary documents and file all missing returns strategically. Sometimes filing returns actually reduces what you owe because you're entitled to deductions and credits you didn't claim. Other times, we can minimize the damage by filing in a specific order.

The key is filing correctly the first time. Amended returns create additional complications and delays in the resolution process. We make sure your unfiled returns are accurate and filed in a way that supports whatever resolution strategy we're pursuing for your overall tax debt.

Tax Resolution Lanesboro, PA