Question 1

How much does tax resolution cost in Mountainhome, PA?

Accepted Answer

Tax resolution fees depend on the complexity of your case and which services you need. Simple installment agreements typically cost less than complex offers in compromise that require extensive financial documentation and negotiation.

We provide transparent pricing upfront after reviewing your situation. Most cases range from $1,500 to $5,000, but we've seen people save tens of thousands of dollars in reduced tax debt, making the investment worthwhile. We also offer payment plans because we understand that if you're dealing with tax debt, cash flow is probably tight.

The key is getting started before penalties and interest make your situation worse. Pennsylvania charges 5% per month in penalties up to 25%, plus interest that compounds daily. Every month you wait costs you more money.

Question 2

Can you stop IRS wage garnishment immediately in Pennsylvania?

Accepted Answer

Yes, we can often stop wage garnishments within 24-48 hours by contacting the IRS directly and requesting a Collection Due Process hearing or by negotiating an alternative payment arrangement. The IRS is required to stop collection while these processes are pending.

Pennsylvania employers are required to comply with federal tax levies, so your paycheck can be garnished for both federal and state tax debt. The IRS typically leaves you with a small amount for basic living expenses, but it's rarely enough to actually live on, especially with Mountainhome's cost of living.

The sooner you act, the better. Once a garnishment starts, it continues until your debt is paid in full or until we negotiate a different arrangement. We've seen cases where people lost 70% of their paycheck to tax garnishments, making it impossible to pay rent or buy groceries.

Question 3

What is an offer in compromise and do I qualify?

Accepted Answer

An offer in compromise lets you settle your tax debt for less than the full amount you owe. The IRS accepts these offers when they believe it's the most they can realistically collect from you, either because you don't have the assets to pay the full amount or because paying the full amount would create financial hardship.

Qualification depends on your income, expenses, asset equity, and ability to pay over time. The IRS uses specific formulas to calculate what they'll accept. For example, if you owe $50,000 but can only afford $200 per month payments, and you have limited assets, you might qualify for a settlement of $15,000 to $25,000.

Not everyone qualifies, and the application process requires detailed financial documentation. The IRS rejects about 60% of offers, usually because people either don't qualify financially or don't provide complete documentation. That's why professional representation is crucial for these cases.

Question 4

How long does tax resolution take in Pennsylvania?

Accepted Answer

Simple installment agreements can be set up in 30-60 days. More complex cases like offers in compromise typically take 6-12 months because the IRS needs time to review extensive financial documentation and make their determination.

The timeline also depends on your responsiveness in providing required documents. The faster you get us bank statements, pay stubs, and other financial records, the faster we can move your case forward. IRS processing times have been slower recently due to staffing issues and increased case volumes.

During this time, we keep collection actions stopped and provide regular updates on your case status. Most people find that just knowing the process is moving forward and having professional representation reduces their stress significantly, even while waiting for final resolution.

Question 5

Do I need to file missing tax returns before resolving tax debt?

Accepted Answer

Yes, the IRS requires current compliance before approving most resolution options. This means filing all required returns, typically for the past six years, and staying current on any ongoing tax obligations like quarterly estimated payments if you're self-employed.

We can prepare these missing returns as part of your resolution case. Often, the returns we prepare show lower tax liability than what the IRS estimated through their Substitute for Return process. The IRS makes conservative assumptions when they file returns for you, and they don't include deductions or credits you might be entitled to.

For Mountainhome residents with rental properties or small businesses, this can make a significant difference. Pennsylvania's local tax complications also mean we need to ensure compliance at both state and local levels, not just with the IRS.

Question 6

Will tax resolution affect my credit score in Pennsylvania?

Accepted Answer

Tax resolution typically improves your credit score over time. While the IRS doesn't report payment plans to credit bureaus, they do report tax liens, and resolving your case often leads to lien releases or withdrawals that help your credit.

If you currently have tax liens filed against you, getting them released or withdrawn as part of your resolution can increase your credit score by 50-100 points or more. This is especially important in Mountainhome's real estate market, where good credit is essential for home purchases or refinancing.

The key is acting before liens get filed. Once you owe more than $10,000 and haven't made payment arrangements, the IRS typically files liens automatically. Prevention is always better than trying to get liens released after the fact, though we can help with both situations.

Tax Resolution Mountainhome, PA