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Common questions about IRS tax relief, debt resolution, and our services answered.
Yes, though forgiveness has a specific meaning in IRS terms.
The main program is the Offer in Compromise, which lets qualifying taxpayers settle their full debt for less than the total owed. The IRS accepts one when full repayment isn't realistic given your income, assets and expenses.
The agency can also remove penalties, though not the original tax, through Penalty Abatement. And after ten years from the date of assessment, unresolved tax debt expires under the Collection Statute Expiration Date.
What the IRS does not do is waive debt because someone asks. These are formal programs with formal eligibility requirements. If a company tells you it can get your debt forgiven without explaining the specific program and your specific eligibility, be skeptical.
There's no minimum balance for most IRS programs.
Offers in Compromise are evaluated on your financial situation relative to the debt. Someone who owes $15,000 with no assets and limited income can qualify, while someone with $100,000 in debt and substantial assets may not.
Installment agreements are available for virtually any balance. Penalty abatement applies whenever there are eligible penalties on your account, regardless of the total.
Technically yes, but it's rarely in your interest.
IRS employees are trained negotiators. They know the rules, the standards and the typical ranges of acceptable agreements. Most taxpayers don't.
Representing yourself, you may agree to a payment higher than the IRS is entitled to demand. You may miss abatement opportunities you'd have qualified for. You may provide more information than necessary and unintentionally expand the scope of the inquiry. Or you may respond to a notice incorrectly and waive rights you didn't know you had.
You have the legal right to representation before the IRS. Using it is usually the financially smart move.
An IRS Power of Attorney, Form 2848, authorizes a licensed professional such as an enrolled agent, CPA or attorney to represent you before the agency. Once it's filed, the IRS is required to deal with your representative instead of contacting you.
You don't technically need one to set up a basic payment plan. But for complex resolution, active enforcement, or any IRS communication where what you say matters, which is nearly all of them, having representation in place is strongly advisable.
It depends heavily on the type:
Streamlined installment agreement. A few days to a few weeks.
First Time Penalty Abatement. Sometimes the same day it's requested by phone.
Offer in Compromise. Typically six to twelve months from submission to decision.
Currently Not Collectible status. Two to six weeks once documentation is submitted.
Audit representation. Weeks to months depending on type and complexity.
IRS appeals. Several months to a year or more.
We give clients realistic timelines upfront and keep them informed throughout.
Currently Not Collectible status is available to taxpayers who genuinely cannot pay anything without compromising basic living expenses. While you're in CNC status, the IRS pauses all enforced collection. No levies, no garnishments, no new liens.
CNC doesn't eliminate the debt or stop interest from accruing, but it gives you time and breathing room. The IRS reviews the status periodically, and if your finances improve significantly, it may request a new review.
If your situation is unlikely to change, you may also be a strong candidate for an Offer in Compromise based on inability to pay over the remaining collection period.
The situation escalates. The IRS sends a series of notices before taking enforcement action, but if you don't respond, it will eventually:
File a federal tax lien, which is public record and affects credit and property
Issue a Final Notice of Intent to Levy, triggering your right to a hearing
Levy bank accounts, garnish wages or seize other assets
In extreme cases, refer the matter for criminal investigation
Every step leaves you with fewer options and more consequences. Responding early, even when you can't pay, is almost always better than ignoring the mail.
Yes, but it's a last resort rather than a routine collection tool.
The IRS prefers to recover funds through levies, garnishments and payment plans rather than seizing and selling real property. That said, if the debt is very large and other methods have been exhausted, seizure is possible.
A federal tax lien on your home means the IRS has a legal claim that must be satisfied if you sell or refinance. That's distinct from seizure, and it's still a serious complication.
For most resolution cases, including installment agreements, settlements, penalty abatement, levy releases and audit representation, a licensed Enrolled Agent has the same legal authority before the IRS as a tax attorney. Our team includes Enrolled Agents who handle these cases daily.
A tax attorney becomes specifically important if your situation involves criminal tax charges, Tax Court litigation or complex legal questions beyond the IRS administrative process. We'll advise you if that's where your case is headed.
Call us. A free consultation costs you nothing and gives you a clear picture of where you stand.
We pull your IRS account transcript, review any notices you've received, assess your financial situation and tell you honestly which programs you're eligible for and what each one involves.
You can reach 911 Tax Relief at 1-877-791-1829. We help clients resolve IRS tax debt in Omaha NE, Overland Park KS, Sherman Oaks CA, North Hollywood CA and nationwide.
