Question 1

How long does tax resolution take in Pennsylvania?

Accepted Answer

Most tax resolution cases take 3-6 months from start to finish, depending on the complexity of your situation and which resolution strategy we pursue. Offers in Compromise typically take longer because the IRS requires extensive financial documentation and review.

Installment Agreements can often be set up more quickly, sometimes within 30-60 days. If you're facing immediate collection actions like wage garnishment, we can often get those stopped within days of starting representation.

The key is acting quickly. The longer you wait, the more penalties and interest accumulate, making resolution more expensive and complicated.

Question 2

Can I qualify for Pennsylvania's Tax Forgiveness program?

Accepted Answer

Pennsylvania's Tax Forgiveness program is income-based and depends on your family size and marital status. If you qualify, you can get a partial or complete refund of state income taxes you've already paid.

To qualify, you must file a PA-40 return and complete Schedule SP. The program has specific income thresholds that change annually. For example, a single person might qualify with income under certain limits, while families have higher thresholds.

This is separate from federal tax resolution, but it can significantly reduce your overall tax burden. We help determine if you qualify and ensure you claim all available Pennsylvania tax benefits.

Question 3

What happens if I can't afford to pay my tax debt?

Accepted Answer

If you genuinely cannot afford to pay your tax debt, you may qualify for Currently Not Collectible status. This temporarily stops IRS collection actions while you're experiencing financial hardship.

The IRS looks at your income, necessary living expenses, and assets to determine if collecting the debt would create undue hardship. If approved, they'll stop garnishments and levies, though interest and penalties may continue accruing.

Another option is an Offer in Compromise, where you settle the debt for less than the full amount owed. This requires proving you cannot pay the full debt now or in the foreseeable future. About 26% of these offers are accepted nationally, but experienced representation significantly improves your chances.

Question 4

Will tax resolution hurt my credit score?

Accepted Answer

Tax resolution itself doesn't hurt your credit score—in fact, it usually helps by removing tax liens and stopping collection actions that do appear on credit reports.

Tax liens can severely damage your credit score and make it difficult to get loans, mortgages, or even rent apartments. When we successfully resolve your tax debt, any liens are typically released, which improves your credit over time.

The IRS also changed their lien filing practices in recent years, filing fewer liens and withdrawing them more readily when debts are resolved. This means faster credit recovery for taxpayers who get their tax problems handled properly.

Question 5

Can you stop wage garnishment immediately?

Accepted Answer

In many cases, yes. Once we begin representing you, we can often get wage garnishments released quickly while we negotiate a permanent resolution to your tax debt.

The IRS is generally willing to release garnishments when taxpayers enter into approved payment arrangements or are pursuing other resolution options like Offers in Compromise. This gives you immediate relief while we work on the long-term solution.

For Pennsylvania state tax garnishments, the process is similar. The key is acting quickly and having proper representation to navigate the release procedures correctly.

Question 6

Do you handle both IRS and Pennsylvania state tax problems?

Accepted Answer

Yes, we handle both federal IRS tax problems and Pennsylvania state tax issues. Many taxpayers owe money to both agencies, and the resolution strategies can be different for each.

Pennsylvania has its own Department of Revenue with different procedures, forms, and resolution options compared to the IRS. For example, Pennsylvania offers specific programs like Tax Forgiveness that don't exist at the federal level.

We coordinate resolution with both agencies to ensure you get comprehensive relief. This prevents the situation where you resolve federal taxes but still face collection from the state, or vice versa.

Tax Resolution Woodhouse, PA