Frequently Asked Questions
How long does it take to settle my tax debt?
It can take anywhere from 1 week to more than a year. It depends on which resolution option we pursue and how quickly the IRS can verify your financial situation.
It also depends on how available you are to work with your tax professional. The more you keep in touch with your accountant, the better he or she can meet filing deadlines, and the quicker the process might go.
How much will it cost for me to work with a tax professional?
A tax professional will charge anywhere from $2,000 to $5,000 and up to resolve your tax problems. But don’t focus too much on this figure. A qualified tax professional can save you thousands of dollars, so choose your provider based not on fees but on qualifications, experience, proven results, and the money you will be saving by securing the most favorable tax relief you are entitled to.
Can I set up a payment plan with my accountant?
Yes, most reputable tax professionals will allow you to pay in installments, as the work is being completed.
Be sure to honor whatever agreement you work out with your provider. If you miss payments, he or she will likely suspend your account until you resume payments, which can delay the resolution process.
What documents and materials will I need to gather?
You should be prepared to provide every document that relates to your financial situation. Here are some examples:
- Bank statements
- Insurance policies
- Car title
- Mortgage records / lease agreement
- Pay stubs
Will the IRS officers try to intimidate me?
Each officer is different – but you should know that they will turn your records inside out. They operate on overkill, gathering every single document that might in any way reflect your financial situation.
The IRS also strictly adheres to deadlines, and if you miss a particular filing date, you might need to start over at the beginning of the process. This is another reason why it’s important to make yourself available to your tax professional.
I’m very worried about this. What can I do to ensure the process goes smoothly?
When working with an accountant, the success of your particular strategy partially depends on you. Here are three points to keep in mind when getting your tax resolution efforts under way:
- Collaborate with your tax professional. Getting your tax problems resolved requires work from both you and your CPA. You will need to provide records and financial information for the process to work well. Please don’t expect that you can step out of the picture and still get the results you want.
- Make yourself available. Your tax professional will need to contact you frequently. Give him or her all your contact information – your home, work, and cell numbers, your fax number, all your email addresses, and your mailing address. If you fail to maintain contact with your CPA, then he or she cannot help you.
- Develop an attitude of grace. Your CPA will be sympathetic with you, but remember to be considerate of your CPA in return. Your tax professional is working directly with IRS officers, some of whom are incompetent, indifferent, or punitive. Please remember the hard work your accountant is doing on your behalf. Manage your stress, anxiety, and composure so your CPA can work far more effectively for you. Always remember your CPA is in your corner and on your side.