Question 1

How long does tax resolution take in Pennsylvania?

Accepted Answer

Most tax resolution cases take 3-6 months, depending on your situation and which resolution option works best. Simple payment plans can be established in weeks. Offers in compromise typically require 6-12 months for IRS processing.

Pennsylvania cases sometimes move faster because the state Department of Revenue often negotiates more readily than the IRS. However, time is critical—Pennsylvania has no statute of limitations on tax collection, meaning they can pursue you indefinitely.

Starting the process before collection actions escalate is crucial. Once the IRS files liens or garnishes wages, resolution becomes more complex and time-consuming.

Question 2

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

Accepted Answer

Yes, but only if you truly qualify for an offer in compromise. The IRS accepts less than you owe when paying the full amount would create financial hardship or when there's legitimate doubt about the amount owed.

Most people who think they qualify actually don't. The IRS uses their formulas, not yours. They don't care about private school tuition or luxury car payments when calculating what you can afford to pay.

We analyze your complete financial picture before recommending an offer in compromise. If you don't qualify, we'll tell you upfront and suggest better alternatives like payment plans or currently not collectible status. Honesty saves you time and money.

Question 3

What happens if I ignore IRS collection notices?

Accepted Answer

Ignoring the IRS is the worst mistake you can make. They have collection powers no other creditor possesses—they can seize bank accounts, garnish wages, and take property without going to court first.

Collection escalates quickly. You'll receive increasingly urgent notices, then a final notice of intent to levy. After that, they can freeze your bank accounts without warning. Many people discover this when their mortgage payment bounces because the IRS emptied their checking account overnight.

Even if you can't pay anything now, responding to notices gives you options. You might qualify for currently not collectible status, which stops collection actions while you recover financially. But you must communicate—silence only leads to deeper trouble.

Question 4

How much does tax resolution cost in Tobyhanna?

Accepted Answer

Tax resolution costs vary based on case complexity, but we provide transparent pricing from the start. Simple payment plan setups cost less than complex offers in compromise requiring extensive financial documentation and IRS negotiation.

Our consultation fee gets credited 100% toward resolution work if you hire us, so you're not paying twice. Most clients find professional representation saves far more than it costs—both in reduced tax debt and avoided penalties.

We offer payment plans for our services because we understand people with tax problems often face cash flow issues. The goal is making professional help affordable when you need it most, not adding to your financial stress.

Question 5

Do you handle Pennsylvania state tax problems too?

Accepted Answer

Absolutely. Pennsylvania can be more aggressive than the IRS when collecting taxes. They charge 8% interest monthly on delinquent taxes, and unlike the IRS, Pennsylvania has no statute of limitations—they can pursue you forever.

We handle all Pennsylvania tax issues: personal income tax, business taxes, sales tax, and payroll tax problems. The state offers resolution options like deferred payment plans and limited offers in compromise, but the rules differ from federal programs.

Many Tobyhanna clients have both IRS and Pennsylvania tax problems. We coordinate resolution strategies for both agencies to avoid conflicts and achieve the best overall outcome. Having one firm handle everything saves time, money, and confusion.

Question 6

What's the difference between tax resolution and bankruptcy for tax debt?

Accepted Answer

Bankruptcy can discharge some tax debts, but only under very specific circumstances. Taxes must be at least three years old, returns filed at least two years ago, and the IRS must have assessed taxes at least 240 days ago. Even then, tax liens survive bankruptcy.

Tax resolution often provides better outcomes than bankruptcy for tax debt. You can negotiate payment plans, offers in compromise, or currently not collectible status without the long-term credit damage bankruptcy causes.

Bankruptcy doesn't stop IRS collection of newer tax debts or payroll taxes, which are rarely dischargeable. Most people with serious tax problems achieve better results through professional tax resolution than bankruptcy court. We can help you determine which approach makes sense for your specific situation.

Tax Resolution Tobyhanna, PA