Tax Resolution and IRS Problem Help
Tax resolution is the work of dealing with the IRS on a balance owed, on returns that were never filed, or on collection action that has already started. If you are behind on filings, holding a notice you do not understand, or watching your paycheck get smaller because the IRS is taking a share, this page covers how that work gets done. Being behind is ordinary work here. We start with the returns nobody wants to open.
The Problems People Come In With
Most people who call about an IRS problem are not sure where to start or whether starting is even possible. The problems below are the ones we see regularly. Find the one that sounds like yours.
I Haven't Filed Taxes in Years
If you have not filed for two years or five, the IRS has not forgotten. In years where you had income reported on a W-2 or 1099, the IRS may have already filed a substitute return on your behalf, and that version almost never reflects deductions or credits you were entitled to. The first move is finding out which years are missing and what the IRS already has on file, then filing the actual returns, oldest first. That sequence matters because the IRS generally will not approve a payment plan, a settlement, or a collection hold until the required returns are in. Filing is the step that opens everything else.
If several years of income came in through 1099s and the books were never kept, there may not be records to file from. That is not a dead end. Bank and card statements can be pulled and organized into a working set of income and expense figures before the returns are prepared. Getting the books caught up first is what makes the returns possible.
My Records Are Gone and I Don't Know Where to Start
More Problems We Work Through Regularly
I Owe More Than I Can Pay
Owing more than you can pay does not mean the IRS takes everything. There are several ways a balance can be resolved: a standard installment agreement, a partial-pay installment agreement, an offer in compromise, or currently not collectible status if there is genuinely nothing to collect from. Which one applies is decided by your income, your assets, and the numbers on your IRS transcripts — not by how difficult the year was. For most people, a monthly payment plan is the realistic answer. We will tell you which options are actually on the table after we see what the transcripts show.
They're Taking Money Out of My Paycheck
A wage levy means the IRS has already moved past notices and into collection. A portion of each paycheck is redirected to the IRS automatically until the balance is resolved or the levy is released. Releasing a levy requires getting into compliance — which usually means filing any missing returns first — and then establishing an agreement the IRS will accept. The levy does not stop on its own.
There's a Lien on My Property
A federal tax lien is a legal claim against your assets that attaches to property you own and can affect your ability to sell or refinance. It does not mean the IRS is about to take the property, but it does mean the balance needs to be addressed before the lien can be released or subordinated. We pull the transcript to confirm what is actually owed and what years are in play, then work through the resolution options from there.
The Penalties Are Bigger Than the Tax
IRS penalties compound quickly, and by the time someone calls, the penalty and interest can be larger than the original balance. Penalty abatement is available in certain circumstances — first-time penalty abatement and reasonable cause relief are the two most common. Neither is guaranteed, and the IRS applies its own criteria. We look at the account history and the circumstances to determine whether a request is worth making and how to frame it.
I Got a Notice and I Don't Know What It Means
IRS notices carry codes, and the code tells you what the IRS is actually doing. Some notices are informational. Others open a window to respond, and some rights end when that window closes. We file the power of attorney form so the IRS corresponds with us instead of you, then read the notice against your transcripts and tell you which years and which numbers are in play. You do not have to be the one on the phone with them.
The Resolution Programs, Explained Plainly
There is no single program that works for every situation. What follows is an accurate description of the options and what determines which one fits.
The IRS generally will not approve any of these until all required returns are filed. That is why the work starts with the returns.
Installment Agreement
A standard installment agreement is a monthly payment arrangement with the IRS. Interest and penalties continue to run on the unpaid balance during the life of the agreement. The IRS sets the term and the minimum payment based on what you owe and your ability to pay. It is not a settlement — the full balance plus accrued interest and penalties is what you are paying down.
Partial-Pay Installment Agreement
A partial-pay installment agreement works like a standard payment plan, but the monthly payment is set at an amount that will not fully pay the balance before the IRS's collection window closes. The remaining balance may expire uncollected if the agreement runs its course. Whether this applies depends on your income, your assets, and the remaining time on the statute of limitations for collection.
Offer in Compromise
An offer in compromise is a settlement for less than the full amount owed. The IRS's decision turns on its own calculation of what it could realistically collect from your income and assets over the remaining collection period — not on how hard the year was or how compelling the case is argued. Far more cases end in a payment plan than in an accepted offer. We will tell you honestly whether the numbers suggest an offer is worth pursuing.
Currently Not Collectible Status
If your income covers only basic living expenses and you have no assets the IRS can reach, the IRS may place your account in currently not collectible status. Collection activity stops while the account is in this status, but the balance does not go away. The IRS reviews the account periodically, and if your financial situation changes, collection can resume.
Penalty Relief
First-time penalty abatement applies if you have a clean compliance history and this is the first time a penalty has been assessed. Reasonable cause relief applies when there were circumstances outside your control that prevented timely filing or payment. The IRS decides both on a case-by-case basis. We look at the account history before recommending whether to request relief.
Relief from a Spouse's Liability
If a balance stems from a jointly filed return and the liability is attributable to your spouse's income or actions rather than yours, there are several forms of relief available — innocent spouse relief, separation of liability, and equitable relief. Each has its own criteria. We review the specifics of the return and the circumstances to determine which form applies.
Is This a Collections Problem or an Examination?
These are two different situations, and they need different work. Knowing which one you have is the first step.
A collections problem means the IRS says you owe a balance — from unfiled returns, from a return you filed, or from a substitute return the IRS filed on your behalf. The notices will reference a balance due, a levy, a lien, or a demand for payment. The resolution programs above are what apply here.
An examination notice means the IRS is questioning items on a return you already filed. The notice will reference a specific return year and ask you to substantiate income, deductions, or credits. This is a different process — one that involves responding to the IRS's questions with documentation and, where the numbers are disputed, being represented in an IRS examination through the formal audit process.
How to Tell the Difference from the Letter
Look at the notice code in the upper right corner and the language in the body. A CP2000, CP2501, or Letter 2205 is typically an examination. A CP14, CP503, CP504, or Letter 1058 is a collections notice. If the letter references a specific line item or asks you to verify income or a deduction, it is an examination. If it states a balance owed and a deadline to pay or respond, it is a collections matter. When in doubt, we read the notice and tell you which one you are dealing with.
How We Work Through This
- We file the IRS power of attorney form. From that point, the IRS corresponds with us, not with you.
- We pull the IRS transcripts for all relevant years. Most people do not know exactly what the IRS has assessed or which years are open. The transcripts make that concrete.
- We identify which returns are missing and prepare them, oldest first.
- We review the balance — what is tax, what is penalty, what is interest — and determine which resolution options apply.
- We submit the appropriate request and correspond with the IRS through the process.
The transcripts are the step that makes everything after it real. Until we have them, any number someone quotes you is a guess.
Who We Work With
We work with individuals and business owners across the country. The engagement runs entirely by mail, phone, and secure client portal, so distance is not a constraint. If you are local to Tallahassee, Florida or the Atlanta, Georgia area, in-person meetings are available.
A version of this problem that comes up often in the trades: a roofing contractor, painter, or framing crew with several years of 1099 income, no books, and returns that were never filed. The income is real, the deductions are real, and the situation is workable — it just requires rebuilding the records before the returns can go in. That combination of bookkeeping and tax resolution work is something we do regularly.
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Ready to Find Out Where You Actually Stand?
The first step is a conversation. We look at what the IRS has on file, what years are open, and what the realistic options are. There is no obligation and no sales pitch.
Schedule a Consultation
The first step is a conversation. We look at what the IRS has on file, what years are open, and what the realistic options are. There is no obligation and no sales pitch.
Common Questions About IRS Resolution
Common Questions About IRS Resolution
What happens if I haven't filed taxes in years?
The IRS may have already filed substitute returns for years where income was reported on a W-2 or 1099. Those versions rarely reflect your actual deductions or credits. The process starts with pulling your transcripts to find out which years are open and what the IRS has assessed, then filing the actual returns oldest first. Until the returns are in, the IRS will not approve a payment plan or any other resolution.Can I get an offer in compromise and settle my tax debt for less?
Possibly, but the IRS's decision turns on its own calculation of what it could realistically collect from your income and assets — not on hardship alone. Many people who apply do not qualify, and far more cases resolve through a payment plan than through a settlement. We review the numbers before recommending whether an offer is worth pursuing.What is an IRS payment plan and how does it work?
An installment agreement is a monthly payment arrangement with the IRS. Interest and penalties continue to run on the unpaid balance while the plan is in effect. The IRS sets the term and minimum payment based on what you owe and your financial situation. It is not a settlement — you are paying down the full balance plus accruing charges.I got an IRS notice but I don't know what it means. What should I do?
Do not ignore it. Notices carry response windows, and some rights end when that window closes. The notice code in the upper right corner tells you what the IRS is doing. We can read the notice against your transcripts and tell you exactly what is in play — and once we file the power of attorney form, we handle the correspondence from that point forward.Can you help with IRS problems if I'm not in Florida or Georgia?
Yes. This work runs entirely by mail, phone, and secure client portal. We work with clients across the country. Distance is not a factor in how the engagement is handled.
