Question 1

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

Accepted Answer

Yes, but not everyone qualifies. The IRS has a program called an Offer in Compromise that lets you settle for less than the full amount, but they only accept about 25% of applications. The key is proving you either can't pay the full amount or that paying it would create financial hardship.

We analyze your income, expenses, assets, and future earning potential to determine if you qualify. If you do, we prepare the application correctly the first time. Most people who try this on their own get rejected because they don't know how to present their case or they miss critical documentation.

The IRS wants to collect something rather than nothing, so if you genuinely can't pay the full amount, they'll often accept a reasonable settlement. But "reasonable" to them might be different than what you think is reasonable.

Question 2

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

Accepted Answer

Not filing is actually worse than not paying. The IRS considers it a criminal offense, and the penalties are severe. But here's what most people don't know: you can usually avoid criminal prosecution by getting current voluntarily before they come after you.

We help you prepare and file all missing returns, then work out a resolution for any taxes you owe. The IRS is generally more willing to work with you if you come forward on your own rather than waiting for them to track you down.

The longer you wait, the worse it gets. Penalties and interest keep piling up, and the IRS gets less cooperative. If you're behind on filing, getting current should be your top priority—even if you can't pay what you owe right away.

Question 3

How long does the tax resolution process typically take?

Accepted Answer

It depends on which resolution option makes sense for your situation. A simple payment plan might be set up in a few weeks. An Offer in Compromise can take 6-12 months or longer because the IRS reviews every detail of your financial situation.

The important thing is that we can usually stop collection actions quickly once we're representing you. That means no more wage garnishments, bank levies, or asset seizures while we work out a permanent solution.

We always aim for the fastest resolution possible, but we won't rush into a bad deal just to close your case quickly. The goal is to get you the best outcome, even if it takes a little longer. A few extra months of negotiations can save you thousands of dollars.

Question 4

Will this affect my credit score or ability to get loans?

Accepted Answer

Tax liens used to be reported to credit agencies, but that changed in 2018. Now, most tax problems don't directly impact your credit score. However, if the IRS has levied your bank accounts or garnished your wages, that financial disruption can certainly affect your ability to pay other bills on time.

Resolving your tax problems actually improves your financial situation because you're no longer dealing with escalating penalties and interest. You'll have a clear picture of what you owe and a plan to handle it.

Some resolution options, like an Offer in Compromise, do require you to stay current on all future tax obligations. But that's usually a small price to pay for eliminating a huge debt and getting your financial life back on track.

Question 5

Can you help with Pennsylvania state tax problems too?

Accepted Answer

Absolutely. Pennsylvania has its own Department of Revenue that can be just as aggressive as the IRS when collecting unpaid taxes. They can garnish wages, levy bank accounts, and place liens on your property.

The good news is that Pennsylvania also has resolution options, including payment plans and sometimes settlement programs. We handle both federal and state issues because they often go hand in hand—if you owe the IRS, you probably owe Pennsylvania too.

Pennsylvania also has a tax forgiveness program for low-income residents, but the income limits haven't been updated since 2003. Many people who should qualify don't know about it or think they make too much money. We review every possible option to reduce what you owe.

Question 6

How much will it cost to resolve my tax problems?

Accepted Answer

Our fees depend on the complexity of your case and which resolution strategy makes the most sense. A simple payment plan costs less than an Offer in Compromise because there's less work involved.

We're upfront about costs from the beginning—no surprises or hidden fees. We also credit 100% of your consultation fee toward any resolution work we do for you. Most clients find that our fees are a fraction of what they save in reduced taxes, eliminated penalties, and stopped interest.

Think about it this way: if you owe $50,000 and we can settle it for $10,000, our fee is insignificant compared to the $40,000 you're not paying. Even if we can't reduce the principal, stopping penalties and interest from accumulating can save you thousands of dollars.

Tax Resolution Marshalls Creek, PA