Question 1

How much does tax resolution cost in Pennsylvania?

Accepted Answer

Most tax resolution cases in Pennsylvania cost between $3,500 and $5,500, depending on complexity. Business cases with payroll taxes typically run $5,000 to $7,000 because of the additional forms and negotiations required.

We credit 100% of your consultation fee toward your resolution work if you hire us. This means you're not paying twice - the consultation becomes part of your total investment. Many firms charge consultation fees that you lose regardless, but we believe in putting your money toward actually solving your problem.

The key is understanding what you're getting for that investment. A good resolution firm should save you far more than it costs. If you owe $50,000 and we settle it for $5,000, paying us $4,000 still saves you $41,000.

Question 2

Can the IRS really take my house in Pennsylvania?

Accepted Answer

Yes, but it's rare and there are protections. The IRS can seize your primary residence, but only after jumping through significant legal hoops and proving you have substantial equity it can recover.

Before the IRS can take your home, it must send multiple notices, attempt other collection methods, and get approval from a federal district court judge. This process typically takes years, giving you plenty of time to resolve the debt through other means.

More commonly, the IRS will place a lien on your property. This doesn't force you to sell, but it prevents you from selling or refinancing until the tax debt is resolved. The lien also damages your credit and can complicate other financial transactions. We can often get liens released as part of a settlement agreement.

Question 3

What happens if I owe both IRS and Pennsylvania state taxes?

Accepted Answer

You're dealing with two separate tax authorities with different rules and procedures. The IRS and Pennsylvania Department of Revenue don't coordinate their collection efforts, so you could face double the pressure.

Pennsylvania operates similarly to the IRS but has its own programs. The state offers payment plans, but they're less flexible than federal options. Their deferred payment plan requires 20% down and must be paid off within six months. If you can't meet those terms, they send your case to collections.

We handle both federal and state cases simultaneously. Often, resolving one helps with the other. If we get your federal debt settled through an offer in compromise, it improves your financial picture for negotiating with Pennsylvania. The key is having someone who understands both systems and can coordinate your overall strategy.

Question 4

How long does tax resolution take in Pennsylvania?

Accepted Answer

Simple cases like payment plans can be resolved in 30-60 days. Complex cases involving offers in compromise typically take 6-12 months, sometimes longer if we need to appeal the IRS's initial decision.

Pennsylvania state cases often move faster than federal cases. Their deferred payment plans can be set up within weeks once your appeal period expires. However, you can't set up a state payment plan until six months after receiving your assessment notice.

The timeline depends heavily on your specific situation and which resolution option works best. Currently not collectible status can be granted quickly if you clearly can't pay. Offers in compromise take longer because the IRS thoroughly investigates your finances. We'll give you realistic timeframes upfront so you know what to expect.

Question 5

Will tax resolution hurt my credit score?

Accepted Answer

Tax liens damage your credit significantly - often dropping scores by 100+ points. However, resolving your tax debt and getting liens released improves your credit over time.

The IRS no longer reports paid tax liens to credit bureaus, which is good news. Once we get your lien released through a settlement or payment plan completion, it should disappear from your credit report. This process can take 30-90 days after the lien release.

Levies don't directly appear on credit reports, but their effects do. If the IRS empties your bank account and you miss other payments as a result, those missed payments hurt your credit. Stopping collection actions quickly prevents this cascade of credit damage.

Question 6

Can I negotiate with the IRS myself without hiring help?

Accepted Answer

Technically yes, but it's risky and rarely successful. The IRS receives millions of offer in compromise applications annually but accepts less than 25%. Most rejections happen because people don't understand the complex financial analysis required.

The IRS has specific formulas for calculating what you can afford to pay. It looks at your income, expenses, assets, and future earning potential. If you miscalculate any part of this analysis, the IRS will reject your offer and you'll owe even more in penalties and interest.

Professional representation also stops collection actions while we negotiate. If you try to handle it yourself and make mistakes, collection continues. The IRS can levy your accounts or garnish your wages while you're trying to figure out the paperwork. We stop that immediately and handle everything properly the first time.

Tax Resolution Sciota, PA