Question 1

How much does tax resolution cost in Pennsylvania?

Accepted Answer

Tax resolution costs typically range from $1,700 to $6,000 for the complete process, depending on the complexity of your case. Most firms charge an investigation fee of $295 to $500 upfront to assess your situation and determine which resolution options are available.

We're completely transparent about costs from the beginning. During your free consultation, we'll explain exactly what services you need and what they'll cost. There are no surprises or hidden fees. You'll know the total investment before we begin any work on your case.

Question 2

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

Accepted Answer

Yes, through the IRS Offer in Compromise program, qualified taxpayers can settle their tax debt for less than the full amount owed. However, qualification requirements are strict. You typically need to owe at least $10,000 and demonstrate that you cannot pay the full amount within a reasonable time.

The IRS considers your ability to pay, income, expenses, and asset equity when evaluating your offer. They'll only accept an amount they believe is the most they can reasonably collect. Success rates are higher when you have professional representation because we know how to present your case in the most favorable light.

Not everyone qualifies for an Offer in Compromise, but there are other options like payment plans, penalty abatement, and Currently Not Collectible status that might work better for your situation.

Question 3

What happens if I ignore IRS notices and letters?

Accepted Answer

Ignoring IRS notices always makes things worse, never better. The IRS has extraordinary collection powers and will use them. They can garnish your wages, levy your bank accounts, seize your assets, and place liens on your property—all without going to court first.

The collection process escalates quickly. After the initial notices, you'll receive increasingly urgent demands for payment. Eventually, the IRS will take enforcement action. They can garnish up to 75% of your disposable income and freeze your bank accounts with little warning.

The good news is that the IRS would rather work with you than against you. They have programs designed to help taxpayers resolve their debts. But these programs work best when you're proactive rather than reactive. The sooner you address the problem, the more options you'll have available.

Question 4

How long does the tax resolution process take?

Accepted Answer

The timeline varies significantly depending on which resolution option you pursue and the complexity of your case. Simple payment plans can be approved in a matter of weeks, while Offers in Compromise typically take 6 to 24 months to process.

During the resolution process, we can often get collection activities paused, which means no more threatening letters or enforcement actions while we work on your case. This gives you immediate relief while we negotiate the best possible outcome.

We'll give you a realistic timeline during your consultation based on your specific situation. Some cases resolve quickly, others take longer, but we keep you informed every step of the way so you always know where things stand.

Question 5

Do I need to file all my back tax returns before starting resolution?

Accepted Answer

Yes, in most cases you need to be current with all required tax filings before the IRS will consider any resolution options. This is called being "compliant" and it's typically the first step in any tax resolution strategy.

If you haven't filed returns in several years, we can help prepare and file all missing returns. We'll work with the IRS to get copies of any tax documents you're missing, like W-2s or 1099s from previous years. The IRS generally requires the last six years of returns to be filed.

Filing back returns often reveals that you don't owe as much as you think. Sometimes the IRS has filed substitute returns that don't include deductions and credits you're entitled to. When we file accurate returns, your actual tax liability is often lower than what the IRS initially calculated.

Question 6

Will tax resolution hurt my credit score?

Accepted Answer

Tax debt relief itself doesn't directly impact your credit score because the IRS doesn't report payment arrangements to credit bureaus. However, tax liens can appear on public records searches, which many creditors and employers monitor.

If you're approved for a payment plan or other resolution, and you make payments as agreed, your credit score should remain stable or potentially improve over time. The key is staying compliant with whatever agreement you reach with the IRS.

Missing payments under a resolution agreement can trigger reports that negatively affect your credit. That's why it's crucial to only agree to payment terms you can realistically maintain. We help ensure any payment plan fits comfortably within your budget so you can successfully complete the program.

Tax Resolution Locust Lakes Village, PA