IRS tax debt questions, answered straight.

Sometimes, yes. An Offer in Compromise can settle a tax debt for less than the full balance when you cannot reasonably pay it in full, and penalty abatement can remove penalties. Not everyone qualifies, and we will tell you honestly whether you do before you spend money on an application.

It depends on how many years are involved and which resolution path fits. We quote a clear flat fee after your consultation, before any work begins, and we offer payment options.

An Enrolled Agent (EA) is a tax professional licensed by the U.S. Department of the Treasury to represent taxpayers before the IRS. EAs have unlimited practice rights, meaning they can handle audits, collections and appeals for any taxpayer, in any state.

With a consultation. We pull your IRS transcripts to see what the IRS already has, prepare the missing returns, and then work out a plan for any balance. Filing is usually the first step toward any relief option.

Yes. After a series of notices, the IRS can levy wages and bank accounts. If you have received a final notice or a levy has already started, contact us right away. Acting quickly can often stop or release it.

No. Once you sign IRS Form 2848 (Power of Attorney), we communicate with the IRS on your behalf.

Our office is in Miami, but as Enrolled Agents we can represent taxpayers anywhere in the United States. Consultations are available by phone or video.

Sí. Ofrecemos todos nuestros servicios en español, desde la consulta inicial hasta la resolución final con el IRS.

Tax resolution is the work of settling or managing a tax debt with the IRS. It includes stopping collection, filing missing returns, reducing penalties, and negotiating a solution such as an Offer in Compromise, a payment plan, or Currently Not Collectible status.

Enrolled Agents, CPAs and attorneys have unlimited rights to represent taxpayers before the IRS. An Enrolled Agent is licensed by the U.S. Treasury and specializes in taxation.

Simple payment plans can be in place within a few weeks. Cases with unfiled returns or an Offer in Compromise usually take several months, because the IRS must process returns and review financial information.

Often, yes. Representatives can request a collection hold while returns are prepared or a proposal is pending, and an Offer in Compromise or a Collection Due Process request generally pauses levy action. The IRS decides case by case.

Generally, the IRS has 10 years from the date a tax is assessed to collect it. That deadline, called the Collection Statute Expiration Date, can be extended by certain actions, so it should be checked on your transcripts before choosing a strategy.

Some advertise that way, but most taxpayers do not qualify for a large settlement. The IRS only accepts an offer that matches what it calculates you can pay. We tell you honestly whether an offer makes sense before you pay for one.

Yes, if the IRS agrees you cannot reasonably pay the full balance before the collection deadline. The offer amount is based on your equity and future disposable income, not on a percentage the IRS picks at random.

Your offer should match or exceed your reasonable collection potential, which is your net asset equity plus a set number of months of disposable income. We calculate this before you apply so you do not waste the application fee on an offer that cannot be accepted.

Many offers take six months to a year to be decided. By law, if the IRS does not make a decision within 24 months of receiving the offer, it is treated as accepted.

You can appeal within 30 days of the rejection letter. If the rejection is correct, you may still qualify for a payment plan or Currently Not Collectible status.

Yes. You must file and pay on time for five years after acceptance. If you do not, the IRS can reinstate the original balance.

Yes. The IRS keeps any refund for the year the offer is accepted and any earlier years, and applies it to your debt.

For balances of $50,000 or less, the payment is usually the balance divided by the months left, up to 72. For larger balances, the IRS sets the payment from your income minus allowable expenses under its national and local standards.

Yes, but it is not streamlined. You will usually need to submit a Collection Information Statement and financial documents, and the IRS may review your assets. Having a representative prepare it helps you avoid overstating what you can pay.

Generally, yes. The IRS usually will not levy while an installment agreement is in place or being considered, and it can release an existing levy once a plan is approved.

Yes. Interest and a reduced failure to pay penalty continue until the balance is paid, which is why a shorter plan or a lump sum can save money if you can manage it.

The IRS can default the agreement and resume collection after sending notice. If you know a payment will be late, contact the IRS or your representative right away to revise the plan.

Not automatically. However, if you owe $25,000 or less and pay by direct debit, you may be able to request withdrawal of the lien notice after a few on-time payments.

Penalties and interest keep growing, the IRS may file a substitute return that overstates your tax, and you lose access to refunds after about three years. You also cannot qualify for payment plans or settlements until you file.

In most cases the IRS asks for the last six years. The right number depends on your situation and what the IRS has already requested, which we confirm from your transcripts.

Yes. We request your wage and income transcripts from the IRS, which show what employers, banks and clients reported. We combine those with your bank records to build accurate returns.

It is a return the IRS prepares for you when you do not file, based only on reported income. It usually leaves out deductions, dependents and business expenses. Filing your own original return can replace it and lower the balance.

Criminal prosecution for not filing is rare and usually involves willful evasion. For most people, the consequences are civil penalties and collection. Filing now, before the IRS takes further action, is the best way to limit risk.

Usually only if you file within three years of the original due date. After that, the refund is generally lost, though it may still be used to reduce balances for other years in some cases.

Contact a representative right away. A wage levy can usually be released once you are in an approved payment plan, placed in Currently Not Collectible status, or otherwise resolve the balance. The IRS must also release a levy that causes economic hardship.

The IRS can take everything above an exempt amount that depends on your filing status and number of dependents. For many people that leaves only a small portion of each paycheck, which is why fast action matters.

Yes. A bank levy freezes the funds in your account on the day it is received. The bank holds them for 21 days before sending them to the IRS, which gives you a short window to get the levy released.

It is IRS Letter 1058 or LT11, the last required notice before the IRS can levy wages and bank accounts. It gives you 30 days to request a Collection Due Process hearing, which pauses levy action while the appeal is heard.

The IRS can levy up to 15% of Social Security benefits through its Federal Payment Levy Program. Hardship relief may be available if the levy leaves you unable to pay basic living expenses.

Sometimes. Funds may be returned if the levy was wrongful or premature, or if it was released during the bank holding period. Once money is applied to your account, getting it back is much harder.

It is the government's legal claim against all of your current and future property when you have an unpaid tax balance. The IRS files a public Notice of Federal Tax Lien so creditors know about the claim.

Pay the balance in full and the IRS releases it within 30 days. You may also qualify to have the public notice withdrawn, for example after entering a direct debit installment agreement on a balance of $25,000 or less.

The major credit bureaus no longer include tax liens on consumer credit reports, but liens are public records that lenders, title companies and background checks can still find.

Yes, in many cases. The IRS can issue a certificate of discharge for the property, usually in exchange for the sale proceeds it is entitled to. This needs to be requested well before closing.

A release ends the lien after the debt is paid or unenforceable. A withdrawal removes the public notice as if it had not been filed, though you may still owe the tax.

It is a penalty equal to 100% of the unpaid trust fund portion of payroll taxes, assessed personally against people who were responsible for paying them and willfully did not. It turns a business tax debt into a personal one.

Yes. Owners, officers and other people with authority over which bills get paid can be held personally liable for the trust fund portion, even if the business is an LLC or corporation.

Closing the business does not end the debt. The IRS can still assess the Trust Fund Recovery Penalty against responsible people and collect it from their personal assets.

Often, yes, as long as the business is making current deposits and has filed its required returns. Smaller balances may qualify for an in-business express installment agreement.

Do not ignore it and do not guess at answers. Have a representative contact the revenue officer, request time to gather records, and prepare a plan before any interview.

Do not ignore it. Note the deadline, identify which items are being questioned, and gather records. Consider having a representative respond, especially for office or field audits.

Yes. Enrolled Agents have unlimited practice rights before the IRS and can represent any taxpayer in audits, collections and appeals, anywhere in the United States.

Usually not. With a signed Form 2848, your representative can attend meetings and communicate for you. The IRS can summon a taxpayer in limited situations.

It is an IRS proposal to change your tax because income reported by employers, banks or brokers does not match your return. You can agree, partly agree or disagree, but you must respond by the deadline.

Yes. If you disagree with the findings, you can generally request a conference with the IRS Independent Office of Appeals before the tax is assessed.

Florida does not have a state personal income tax, so most Florida residents only file a federal return. You may still need a return in another state if you earned income there.

An Enrolled Agent is licensed by the U.S. Treasury, must pass a three-part IRS exam or have qualifying IRS experience, completes continuing education, and can represent any taxpayer before the IRS. Many preparers have none of these credentials.

Typically your W-2s, 1099s, prior-year return, records of deductions such as mortgage interest or charitable gifts, and dependent information. Self-employed filers also need income and expense records.

File on time anyway to avoid the larger failure to file penalty. Then set up a payment plan. We can help you choose the right option.

No. An extension gives you until October to file, but any tax owed is still due by the April deadline. Interest and penalties apply to late payments.

S corporation and partnership returns are generally due March 15 for calendar-year businesses. C corporation returns are generally due April 15. Extensions are available but do not extend the time to pay.

It depends on how the LLC is taxed. LLCs taxed as sole proprietorships, partnerships or S corporations generally do not pay Florida corporate income tax. LLCs taxed as C corporations may owe it.

An S corporation election can lower self-employment tax for profitable businesses that pay the owner a reasonable salary, but it adds payroll and filing requirements. We run the numbers before recommending it.

A profit and loss statement, balance sheet, bank and credit card statements, payroll reports, asset purchases, and loan documents. Up-to-date bookkeeping makes this simple.

Yes. We can review past returns, file amended returns when needed, and prepare any unfiled business returns.

A bookkeeper records transactions, reconciles bank and credit card accounts, categorizes income and expenses, and produces financial reports so you know your profit and your tax picture.

A QuickBooks ProAdvisor is an accounting professional who has completed Intuit's QuickBooks certification training and is qualified to set up, clean up and manage QuickBooks for businesses.

Yes. We do catch-up and cleanup bookkeeping for businesses that are months or even years behind, and then keep them current monthly.

Accurate books mean accurate returns, supported deductions, and timely estimated and payroll tax payments. Most IRS balances we resolve started with records that fell behind.

File Articles of Organization with the Florida Division of Corporations through Sunbiz, name a registered agent, get an EIN from the IRS, and open a business bank account. You also need to file an annual report each year to stay active.

An LLC is a legal structure, while S corporation status is a tax election that an LLC or corporation can make. Many small businesses start as an LLC and elect S corporation treatment once profits make the payroll savings worthwhile.

No. The IRS issues Employer Identification Numbers for free on IRS.gov. Be careful with websites that charge a fee for this.

Florida LLCs and corporations must file their annual report with Sunbiz between January 1 and May 1 each year. Late reports carry a penalty and can lead to administrative dissolution.