Question 1

How long does tax resolution typically take in Pennsylvania?

Accepted Answer

Most tax resolution cases take 3-6 months to complete, but this varies significantly based on your specific situation and which resolution option works best for you. Simple installment agreements can often be set up within 30-60 days.

Offer in Compromise cases typically take 6-12 months because the IRS requires extensive financial documentation and review. However, once we submit your case, collection actions usually stop, giving you immediate relief from levies and garnishments.

The key is starting the process as soon as possible. Every month you wait, penalties and interest continue to accumulate, making your debt larger and harder to resolve. We can often get collection actions stopped within days of taking your case.

Question 2

What's the difference between federal and Pennsylvania state tax debt?

Accepted Answer

Federal tax debt is owed to the IRS, while Pennsylvania state tax debt is owed to the Pennsylvania Department of Revenue. Both agencies have powerful collection tools, but they operate differently and have different resolution options available.

The IRS offers programs like Offer in Compromise and Currently Not Collectable status that can significantly reduce or eliminate your debt. Pennsylvania has similar programs, but they're generally more restrictive and harder to qualify for.

One major difference is that Pennsylvania can be more aggressive with collection actions and less flexible with payment arrangements. That's why it's crucial to work with someone who understands both systems and can coordinate resolution strategies that work for both federal and state obligations.

Question 3

Can the IRS really take my house or business?

Accepted Answer

Yes, the IRS has the legal authority to seize your home, business, and other assets to satisfy tax debt, but they rarely do this as a first resort. Seizures typically happen only after other collection methods have failed and you've ignored multiple notices and opportunities to resolve the debt.

The IRS prefers to work out payment arrangements because seizures are expensive and time-consuming for them. However, if you owe significant amounts and have valuable assets, seizure becomes more likely, especially for business owners with payroll tax problems.

The good news is that seizure actions can almost always be prevented with proper representation and a realistic resolution plan. Even if seizure proceedings have already started, we can often get them stopped and negotiate a better outcome for you.

Question 4

How much will tax resolution services cost me?

Accepted Answer

Our fees depend on the complexity of your case and the amount of work required to resolve it. Simple cases with straightforward installment agreements cost less than complex Offer in Compromise cases that require extensive financial analysis and negotiation.

We provide upfront pricing after reviewing your situation, so there are no surprises later. If you decide to move forward with our services, we credit 100% of your consultation fee toward your resolution work.

Most clients find that our fees are a small fraction of what they save through proper resolution. For example, if we can get your $50,000 tax debt settled for $10,000, our fee is minimal compared to the $40,000 you save. The key is getting professional help before your situation gets worse and more expensive to resolve.

Question 5

What happens if I can't afford to pay anything right now?

Accepted Answer

If you truly cannot afford to pay anything due to financial hardship, you may qualify for Currently Not Collectable (CNC) status. This temporarily stops IRS collection actions while you get back on your feet financially.

CNC status isn't permanent – the IRS will review your financial situation periodically to see if it has improved. However, it gives you breathing room to address the underlying issues that caused your tax problems in the first place.

Even if you can only afford small payments, we can often negotiate installment agreements that work within your budget. The IRS would rather collect something than nothing, so they're usually willing to work with realistic payment proposals that you can actually afford to make.

Question 6

Do I need to have filed all my tax returns before starting resolution?

Accepted Answer

In most cases, yes. The IRS typically requires you to be current with all required tax filings before they'll consider most resolution options. This is called "compliance," and it's usually the first step in any resolution process.

If you have unfiled returns, we can prepare and file them as part of your resolution case. Sometimes unfiled returns actually work in your favor because they might show refunds that can be applied to your debt, or the actual tax owed might be less than what the IRS estimated.

Don't let unfiled returns prevent you from getting help. The longer you wait, the more penalties and interest accumulate, making your situation worse. We can get you compliant and into a resolution program much faster than you might think, often within 60-90 days.

Tax Resolution Stockport, PA