FAQ

What is tax resolution?

Tax resolution is the process of addressing and resolving tax debts with the IRS or state tax authorities.

What are the different options to resolve tax debt?

 There are options when the decision is made to resolve tax debt. Here are a few to consider:

               Offer in Compromise (OIC) – Settles tax debt for less than the full amount owed for eligible taxpayers.

               Installment Agreements – Allows debt payments over time through monthly payments.

               Currently Not Collectible (CNC) Status – Temporarily puts a hold on IRS collection efforts during extreme financial hardship.

               Penalty Abatement – The removal of penalties for late filing or payment in certain situations.

How long does tax resolution take?

The time frame varies depending on the case, the situation and the chosen option. It can range from months to over a year.

Can tax debt be resolved for less than the amount owed?

Yes, the IRS may settle tax debt for a reduced amount through an Offer in Compromise but under eligibility requirements.

Can IRS audits be avoided?

While avoiding an audit is not guaranteed, making sure tax returns are completed accurately and complying with filing and payment requirements is essential. Although an audit does not explicitly mean that something is wrong with your tax returns, audits can be to review the information provided.

How do I know how much I owe in back taxes?

You can check your account through the IRS online portal or by calling the IRS directly.

What is a Power of Attorney (POA) and how does it help?

A POA allows a tax professional to communicate and negotiate with the IRS on your behalf. This is a form that must be signed by the taxpayer and provided to the IRS to show that the authorization has been provided to assist the taxpayer.

Are tax resolution services expensive?

The cost of tax resolution services varies and depends on the complexity of the case. This is a specialty field in the realm of taxation and only licensed professionals can assist clients with this type of tax concern.

Can you negotiate with the IRS on your own?

Yes, you can negotiate with the IRS yourself, but having an experienced professional can be very beneficial.

What happens if the debt isn’t resolved?

Ignoring tax debt can lead to collection actions such as wage garnishments, bank levies and tax liens.