Question 1

How much does tax resolution cost in Snydersville, PA?

Accepted Answer

Most tax resolution firms charge between $500-$1,200 for the initial investigation and case analysis. This involves pulling your tax transcripts, reviewing your financial situation, and developing a resolution strategy. We often subtract this fee from your total cost if you proceed with our services.Our ongoing representation typically costs $200-$550 per hour, though we offer flat-fee arrangements for specific services. For example, preparing and submitting an Offer in Compromise might cost $2,500-$5,000 total, while setting up an installment agreement could cost $1,000-$2,500.The investment in professional representation often pays for itself through reduced penalties, lower settlement amounts, and faster resolution. DIY attempts frequently fail because people don't understand the complex requirements and documentation needed for successful tax resolution.

Question 2

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

Accepted Answer

Yes, but Pennsylvania is much more restrictive than the IRS when it comes to settling for less than you owe. The state's Offer in Compromise program only considers cases that show doubt about the liability or promote "Effective Tax Administration."Simply being unable to pay the full amount won't qualify you for a Pennsylvania tax settlement. You need to demonstrate either that the tax assessment is incorrect or that paying the full amount would create an economic hardship that outweighs the state's interest in collecting the tax.For federal tax debt, Offers in Compromise are more accessible. The IRS accepts about 26% of all offers submitted, but we achieve acceptance rates up to five times higher by properly preparing and presenting cases. The key is demonstrating that the offer amount represents your maximum collection potential based on your assets and future income capacity.

Question 3

How long does tax resolution take in Pennsylvania?

Accepted Answer

Simple installment agreements can often be set up within 30-60 days once all required documentation is submitted. The IRS has streamlined procedures for taxpayers who owe less than $50,000 and can pay the debt within 72 months.More complex resolutions take longer. Offers in Compromise typically require 6-12 months for processing, though the IRS has been improving processing times recently. Pennsylvania state tax resolutions can take 3-6 months depending on the complexity of your case and the specific resolution option.Currently Not Collectible status can sometimes be achieved within 30-45 days if you're experiencing genuine financial hardship. This temporarily stops collection actions while you get back on your feet financially. The key is providing complete and accurate financial documentation that clearly demonstrates your inability to pay.

Question 4

What happens if I ignore my tax debt in Pennsylvania?

Accepted Answer

Pennsylvania has no statute of limitations on tax collection, which means your tax debt never goes away on its own. The state can pursue collection actions indefinitely, and penalties and interest continue accumulating the entire time.Collection actions typically escalate over 12-18 months. First, you'll receive notices demanding payment. Then the state files tax liens against your property, which damage your credit and make it difficult to sell or refinance your home. Finally, they begin wage garnishments and bank levies to collect the debt directly from your income and assets.The longer you wait, the more expensive resolution becomes. Penalties and interest can double or triple your original tax debt over time. Early intervention gives you more options and typically results in better outcomes than waiting until collection actions have already started.

Question 5

Do I qualify for innocent spouse relief in Pennsylvania?

Accepted Answer

Pennsylvania offers three types of innocent spouse relief for taxpayers who filed joint returns but shouldn't be held responsible for their spouse's tax debt. You might qualify if your spouse understated income, claimed improper deductions, or failed to pay taxes without your knowledge.The key requirements include proving you didn't know about the tax problem when you signed the return, showing it would be unfair to hold you responsible for the debt, and demonstrating you didn't significantly benefit from the unpaid taxes. You typically have two years from the date of first collection action to request innocent spouse relief.Both the IRS and Pennsylvania Department of Revenue have innocent spouse programs, but the requirements and procedures differ slightly. If you qualify for federal innocent spouse relief, you might not automatically qualify for state relief, so both need to be addressed separately. The Taxpayers' Rights Advocate in Pennsylvania handles these determinations and can provide guidance on whether your situation qualifies.

Question 6

Can tax resolution stop wage garnishments immediately?

Accepted Answer

Yes, but the specific procedure depends on whether you're dealing with federal or state wage garnishments. For IRS wage garnishments, entering into an installment agreement or submitting an Offer in Compromise typically releases the garnishment within 1-2 pay periods.Pennsylvania wage garnishments can be more challenging to stop quickly. The state requires you to either pay the debt in full, enter into an approved payment arrangement, or demonstrate financial hardship that makes the garnishment inappropriate. Unlike federal garnishments, Pennsylvania doesn't automatically release garnishments when you enter into payment agreements.The fastest way to stop any wage garnishment is to work with us as your tax professional. We can immediately contact the appropriate tax authority and negotiate a release. We understand the specific procedures and documentation required to get garnishments released quickly while you work on a long-term resolution.

Tax Resolution Snydersville, PA