Question 1

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

Accepted Answer

Yes, through the IRS Offer in Compromise program, but only if you meet strict qualification requirements. The IRS will accept an offer when it represents the most they can reasonably expect to collect from you within a reasonable timeframe.This isn't about wanting to pay less - it's about proving you genuinely cannot pay the full amount without creating severe financial hardship. You'll need to document every asset, every source of income, and every monthly expense. The IRS uses specific formulas to calculate what you can afford, and your offer must meet or exceed that amount.Most people who think they qualify actually don't. That's why professional representation is crucial - we know exactly how to present your financial situation to maximize your chances of acceptance while minimizing your settlement amount.

Question 2

How long does tax resolution take in Pennsylvania?

Accepted Answer

The timeline depends entirely on which resolution option fits your situation and how quickly you act. Simple installment agreements can be approved within 30 days if you owe less than $50,000 and meet basic requirements.Offers in compromise take much longer - typically 6 to 24 months for the IRS to make a final decision. Pennsylvania state tax matters often move faster than federal cases, but still require several months for complex situations.The biggest factor is preparation. Cases with complete documentation and proper presentation move through the system much faster than those missing key information. That's why we front-load all the work - gathering every document, preparing every form, and anticipating every question before we submit anything. This approach dramatically reduces delays and gets you to resolution faster.

Question 3

What happens if the IRS has already levied my bank account?

Accepted Answer

Bank levies are serious, but they're not permanent. Once a levy hits your account, the bank freezes the funds for 21 days before sending them to the IRS. This gives us a narrow window to negotiate a release if we can demonstrate that the levy is causing significant hardship.Even if the funds are already gone, we can often prevent future levies by immediately establishing a resolution plan. The IRS typically won't continue aggressive collection actions once you're in an approved payment arrangement or while they're considering an offer in compromise.The key is speed. Every day matters when you're dealing with active collection. We can often get levies released within days if we can show the IRS that you're cooperating and working toward resolution. But this requires immediate action and proper documentation of your financial hardship.

Question 4

Do I need a lawyer for tax resolution problems?

Accepted Answer

Not necessarily, but you need someone who understands tax law and IRS procedures inside and out. The IRS doesn't care whether you're represented by an attorney, CPA, or enrolled agent - what matters is competence and experience.Tax resolution is a specialized field that's completely different from regular tax preparation. It requires understanding collection procedures, negotiation strategies, and financial analysis techniques that most tax preparers never learn. One mistake in your offer in compromise application, for example, can result in automatic rejection.The real question is whether you can afford to get it wrong. The IRS has unlimited time and resources. They know their procedures perfectly, and they use that knowledge to collect every dollar they can. Professional representation levels the playing field by ensuring your case is presented properly the first time.

Question 5

What if I haven't filed tax returns for several years?

Accepted Answer

Unfiled returns are actually one of the easiest tax problems to solve, but they create the foundation for much bigger problems if ignored. The IRS can file substitute returns for you, but they won't include any deductions or credits you're entitled to - meaning you'll owe far more than necessary.We handle unfiled returns as part of comprehensive tax resolution. Often, filing the missing returns actually reduces your total tax debt because the IRS substitute returns are notoriously inaccurate. We prepare the returns properly, claim all allowable deductions, and then negotiate resolution of the final balance.The key is filing compliant returns before pursuing any resolution strategy. The IRS won't consider payment plans or offers in compromise until you're current with all filing requirements. This includes not just back returns, but also quarterly estimated payments if you're self-employed. We handle the entire compliance process to get you eligible for the best possible resolution options.

Question 6

How much will tax resolution services cost me?

Accepted Answer

Our fees depend on the complexity of your case and which resolution strategy we pursue. Simple cases might cost a few thousand dollars, while complex offers in compromise or business tax problems require more extensive work.Here's what makes us different: if you engage our services, we credit 100% of your consultation fee toward your resolution work. This means you're not paying twice - the consultation fee becomes part of your total investment in solving the problem.More importantly, professional representation typically saves far more than it costs. A properly negotiated offer in compromise might settle $50,000 in tax debt for $5,000. An installment agreement with penalty abatement could save thousands in ongoing interest and penalties. The return on investment in professional tax resolution is usually substantial, which is why most of our clients wish they had called sooner.

Tax Resolution Tyler, PA