Answers
IRS questions, answered
Deadlines, enforcement, resolution options, and fees — in one place, so you don't have to read every service page to find the answer you need.
Facing a levy, garnishment, or a notice deadline inside seven days? Call (309) 975-1009.
Getting started
How representation begins and what the first phase covers.
- Where do I start if I have an IRS problem?
- Every engagement begins with a $3,000 Phase I initial assessment: Form 2848 Power of Attorney filed, IRS account and wage-and-income transcripts pulled, collection statute expiration dates analyzed, adverse collection halted where possible, and a written resolution plan delivered. No resolution fee is quoted before that work is done.
- Can a CPA represent me before the IRS?
- Yes. Under Circular 230, CPAs hold unlimited practice rights before the IRS and can represent taxpayers in examinations, collections, appeals, and before the Taxpayer Advocate Service in all 50 states. A CPA cannot petition the U.S. Tax Court without admission to its bar, but can prepare the case and refer it if litigation becomes necessary.
- What information should I have ready for the first call?
- Any IRS notice (notice number and date), the tax years involved, whether the balance is personal or business, and whether a Revenue Officer has contacted you. Missing transcripts are not a problem — pulling them is part of the assessment.
- Do you represent taxpayers in every state?
- Yes for IRS matters, which are federal. We do not take state tax controversy work; for a state matter we refer to a qualified practitioner in the taxpayer's state.
Notices and deadlines
What the letter in your hand means and how long you have.
- I received an LT11 or Letter 1058. What is the deadline?
- Thirty days from the notice date to request a Collection Due Process hearing on Form 12153. CDP is the strongest procedural protection available in collections — a timely request suspends levy action and moves the case to Appeals. The 30-day period is statutory and does not pause while you gather documents.
- What is a CP504 and is it a real levy notice?
- CP504 is a notice of intent to levy your state tax refund and a signal that a Final Notice of Intent to Levy with CDP rights is imminent. It does not by itself carry the 30-day CDP clock, but it is the last quiet moment before enforcement.
- What if I got a CP2000 or a Notice of Deficiency?
- A CP2000 proposes changes from third-party information matching and is answered with a written response and documentation. A Notice of Deficiency (Letter 3219) starts a 90-day period to petition the U.S. Tax Court; miss it and the tax is assessed and moves to collection.
- What happens if I already missed the deadline?
- Options remain — installment agreements, Currently Not Collectible status, penalty abatement, an Offer in Compromise, or a Collection Appeals Program request — but the leverage is narrower and the path is usually longer and more expensive than a timely response.
Levies, garnishments, and liens
Active enforcement and what can realistically be reversed.
- Can you stop an active bank levy or wage garnishment?
- Often, yes. A release requires a Power of Attorney, a financial analysis (Form 433-F or 433-A), and a collection alternative the IRS will accept. Bank levies carry a 21-day hold before funds are surrendered; wage garnishments continue every pay period until released. Speed matters more than anything else in these cases.
- How is a lien different from a levy?
- A federal tax lien is a claim against your property that attaches on assessment and is made public by a Notice of Federal Tax Lien. A levy is the actual seizure of funds or wages. Liens affect credit and closings; levies take money.
- Can a lien be withdrawn or subordinated?
- Sometimes. Withdrawal, discharge, and subordination each have their own criteria — for example, entering a qualifying direct-debit installment agreement can support withdrawal, and subordination can allow a refinance to proceed when it helps collection.
- A Revenue Officer showed up. What now?
- Do not answer substantive questions on the spot. A Revenue Officer means the case is assigned and field collection is active. File a Power of Attorney so contact routes through the representative, then work the compliance and financial analysis on a documented schedule.
Resolution options
What the IRS actually accepts, and what it does not.
- Will the IRS settle my debt for less than I owe?
- Sometimes, through an Offer in Compromise, which requires that Reasonable Collection Potential — a formula on equity in assets plus future income — be less than the balance owed. Most taxpayers do not qualify and are better served by an installment agreement, Currently Not Collectible status, or penalty abatement. The assessment runs that math before any offer is filed.
- Can penalties be removed?
- Failure-to-file and failure-to-pay penalties can be abated for reasonable cause or, for a clean compliance history, under First Time Abate. Interest generally follows the penalty: abate the penalty and the interest computed on it comes off with it.
- What if I have unfiled returns?
- Compliance comes before resolution — the IRS will not negotiate a balance while returns are missing. Wage-and-income transcripts are used to reconstruct the years, which often produces a lower liability than an IRS substitute-for-return assessment under IRC 6020(b).
- I owe payroll taxes. How is that different?
- Trust fund taxes withheld from employees can be assessed personally against responsible persons through the Trust Fund Recovery Penalty under IRC 6672, usually preceded by a Form 4180 interview. These cases move faster and carry personal exposure, so they should never be left to run.
- Does IRS debt ever expire?
- Yes. The collection statute expiration date is generally 10 years from assessment, though events such as bankruptcy, a pending offer, or a CDP request can suspend it. Reading the CSED on the transcripts is part of the assessment because it changes which option makes sense.
Fees and working together
What things cost and how the engagement runs.
- Why is the initial assessment $3,000?
- It funds real work: Power of Attorney filed, transcripts pulled and analyzed, CSED dates verified, adverse collection halted where possible, and a written resolution plan. Quoting a flat resolution fee before reading transcripts is how taxpayers get overcharged.
- How are resolution fees quoted?
- In a written engagement agreement after the assessment, based on balance, number of years, missing filings, whether a Revenue Officer is assigned, and whether Appeals is involved. Published ranges are on the fee schedule page.
- Do you guarantee an outcome?
- No. No representative can guarantee an IRS result, and any firm promising to settle your debt for pennies is selling something other than representation. What is committed to is the procedure, the deadlines, and the written analysis behind every position taken.
- Is my information confidential?
- Yes. Taxpayer information is handled as confidential and used only to evaluate and work the matter, consistent with IRC 7216 and Circular 230 obligations. Documents move through an encrypted client portal, not email attachments.
Question not covered here?
Bring the notice and the tax years. The initial assessment answers it against your actual IRS transcripts instead of general guidance.
Get the right strategy before the problem gets more expensive.
Schedule your confidential initial assessment to identify the fastest, most defensible resolution path.