IRS TAX RESOLUTION FAQs
Get answers to common questions about IRS and state tax problems, including back taxes, payment plans, Offers in Compromise, penalty relief, unfiled returns, audits, levies, and other tax resolution options.
What is tax resolution?
Tax resolution is the process of addressing unpaid taxes, unfiled returns, penalties, audits, levies, liens, or other tax problems with the IRS or a state tax authority. The right solution depends on your specific circumstances and may include filing missing returns, setting up a payment plan, requesting penalty relief, pursuing an Offer in Compromise, or another resolution strategy.
What is the tax resolution process?
The tax resolution process usually begins with reviewing your tax history, IRS or state notices, outstanding balances, unfiled returns, and current financial situation. We may obtain authorization to communicate with the taxing authority on your behalf and determine exactly what needs to be addressed. Once we understand the full picture, we evaluate the resolution options that may be available and develop a strategy for moving forward. Depending on your situation, that could include filing missing returns, establishing a payment plan, requesting penalty relief, pursuing an Offer in Compromise, or another resolution option.
My tax return is under audit. Can you represent me?
Yes. As an Enrolled Agent, Aidela Zirkind is federally authorized to represent taxpayers before the IRS. We can communicate with the IRS on your behalf, help you understand what the auditor is requesting, gather and present the necessary documentation, respond to IRS inquiries, and guide you through the audit process. We can also assist with many state tax audit matters.
What is an IRS installment agreement?
An installment agreement is an IRS payment plan that allows you to pay your tax debt through monthly payments over time when you cannot pay the full balance immediately. The amount and length of the payment plan depend on factors such as how much you owe, the type of tax debt, your financial circumstances, and the amount of time the IRS has remaining to collect the debt. Penalties and interest generally continue to accrue until the balance is paid.
What is an Offer in Compromise?
An Offer in Compromise (OIC) is an IRS program that may allow qualifying taxpayers to settle their tax debt for less than the full amount owed. The IRS considers factors such as your income, expenses, assets, and ability to pay when evaluating an offer. An Offer in Compromise is not available to everyone, so determining whether you may qualify requires a careful review of your financial situation.
Do I qualify for an offer in compromise?
Whether you qualify for an Offer in Compromise depends on your specific financial circumstances. The IRS considers factors such as your income, necessary living expenses, assets, ability to pay, and the amount of time remaining to collect the tax debt. You generally must also be current with required tax filings and meet other IRS eligibility requirements. We can evaluate your situation to determine whether an Offer in Compromise may be a realistic option and help you understand the alternatives if it is not.
What is a penalty abatement?
Penalty abatement is a form of tax relief that may allow certain penalties assessed by the IRS or a state tax authority to be reduced or removed. It does not generally eliminate the underlying tax owed, but it can reduce the total amount due when penalty relief is available.
Do I qualify for penalty abatement?
Yes. The IRS may reduce or remove certain penalties when a taxpayer qualifies for penalty relief. Relief may be available based on reasonable cause or through IRS administrative relief programs. In 2026, the IRS began transitioning from First Time Abate (FTA) to Automatic Exemption from Penalty (AEP), which automatically provides relief from certain failure-to-file, failure-to-pay, and failure-to-deposit penalties for eligible taxpayers with a history of timely compliance. FTA remains available for certain earlier and transitional tax periods. Eligibility depends on the type of penalty, the tax period, and the taxpayer’s circumstances.
What if I can’t afford to pay the IRS anything back right now?
If paying your tax debt would prevent you from covering necessary living expenses, you may qualify for Currently Not Collectible (CNC) status. CNC status temporarily pauses most IRS collection activity while you are unable to pay. The tax debt does not go away, and penalties and interest generally continue to accrue. The IRS may review your financial situation later and resume collection if your ability to pay improves.
What happens if I have unfiled tax returns?
Unfiled tax returns can lead to penalties, interest, collection action, and in some cases the IRS may prepare a Substitute for Return (SFR) using information available to them. Before resolving an outstanding tax debt, you generally need to become current with required tax filings. We can determine which returns need to be filed, prepare the missing returns, and then evaluate the appropriate resolution options for any remaining tax debt.
What should I do if the IRS levies my bank account or wages?
If the IRS levies your bank account, wages, or other property, it is important to address the situation quickly. Depending on the circumstances, there may be options to have a levy released, establish a payment arrangement, demonstrate financial hardship, or pursue another resolution. We can review the collection action, communicate with the IRS on your behalf, and determine the appropriate steps to resolve the underlying tax problem.
Can the IRS place a lien on my property?
Yes. A federal tax lien is the government’s legal claim against your property when you owe taxes and do not pay the debt. Unlike a levy, a lien does not mean the IRS has taken your money or property. Instead, it protects the government’s interest in assets you own, such as your home, other real estate, and certain personal or business property. A tax lien can affect your ability to sell or refinance property and may remain in place until the tax debt is resolved or the lien is otherwise released. We can review your situation and determine what options may be available for addressing the lien and the underlying tax debt.
How long does the IRS have to collect a tax debt?
The IRS generally has 10 years from the date a tax is assessed to collect the debt. The date this collection period expires is known as the Collection Statute Expiration Date (CSED). However, certain events can suspend or extend the collection period, so the CSED is not always simply 10 years from the tax year or the date a return was filed. We can review your IRS account transcripts to help determine the applicable collection period and how it may affect your resolution options.
Can you help with state tax problems as well as IRS tax problems?
Yes. Switchback Accounting helps individuals and businesses resolve both IRS and state tax problems. Depending on the situation, we can assist with issues such as unpaid state taxes, unfiled returns, penalties, audits, levies, and payment arrangements, and communicate with the appropriate state tax authority on your behalf.