Frequently Asked Questions

IRS resolution services, such as those offered at Halls IRS Tax Relief, help taxpayers resolve outstanding tax issues with the Internal Revenue Service as well as state tax authorities. Resolution can come in many forms including affordable payment plans, lowering tax penalties, making offers to resolve outstanding tax debt, and filing original tax returns or amending tax returns if necessary.

If you owe the IRS and cannot pay, you have some options depending on your financial status.

  • Installment agreement – An installment agreement is a payment plan with the IRS to pay the taxes you owe within an extended timeframe. When you request a payment plan (installment agreement), with certain exceptions, the IRS is generally prohibited from levying and the IRS’s time to collect is suspended or prolonged while an Installment Agreement (IA) is pending.
  • Offer in compromise – An offer in compromise (OIC) allows you to offer a lower amount to the IRS, and if approved, the IRS will forgive the remaining balance. However, you must qualify for the OIC. To qualify for an OIC, the IRS requires you to be current with both your tax return filings and estimated tax payments. Also, if you are a business owner and have employees, the IRS requires you to make all federal employment tax payments for the current quarter to qualify. You must also demonstrate you are unable to pay the full balance through alternative options, such as an installment agreement or other financial means. If you are in the process of filing bankruptcy, you cannot enter an OIC with the IRS.
  • Currently not collectible (CNC)- If you find that paying anything may cause a financial hardship, you can request the IRS place your account in “currently not collectible” status until your financial condition improves. You may qualify if the IRS determines you cannot afford to pay any part of your debt. While this does not make the debt disappear, it can hold off any IRS enforcement activities, such as a tax levy. However, the IRS may still file a tax lien while the account is suspended.

Depending on the IRS caseload, it generally takes ten to twelve months. But no matter how long it takes the Internal Revenue Service to review the Offer in Compromise, during that time all further collection activities are suspended.

After an Offer is accepted and you make payment on your Offer Amount, your remaining tax balance is eliminated. Any outstanding federal tax liens on your former balances will be released within approximately 45 days of your Offer being paid.

A federal tax lien is a government claim against your property for a balance due that has gone unpaid. The government files tax liens to protect its interest in your property. Liens can be filed after a tax liability is assessed, the IRS issues you a notice of the balance due and the balance is not paid timely.

A lien attaches to your current and future assets, such as real property. Liens can also affect your creditworthiness. Liens frequently will continue to exist after a taxpayer files bankruptcy.

Liens and levies are both collection tools for the Internal Revenue Service; however, they operate differently. A lien is a claim to a taxpayer’s property because the taxpayer owes a tax debt. A levy involves the actual seizure of a taxpayer’s property to pay the tax liability.

In summary, “penalty abatement” is asking the IRS to review your situation and see if you qualify for waivers on penalty fees they charged for late filing and/or late payment of your taxes.

No! I will handle your case in its entirety. All communications with the IRS will be made directly through myself or one of our team members

Yes, the IRS can levy part of your social security payments