IRS Tax Resolution
We Resolve IRS Tax Problems.
If you owe back taxes, face IRS collection action, or have unfiled returns, Paul Ethan CPA Firm, PLLC represents you directly before the IRS — negotiating settlements, stopping levies, and resolving your tax debt with precision.
You Have Options. We Know How to Use Them.
An IRS tax problem does not resolve itself. Ignoring notices, missing deadlines, or attempting to negotiate alone almost always results in a worse outcome — higher penalties, compounding interest, and aggressive collection action including wage garnishment, bank levies, and federal tax liens.
Paul Ethan CPA Firm, PLLC represents individuals, executives, business owners, and high-net-worth clients who have fallen behind on taxes or are facing IRS enforcement. As a licensed CPA firm, we have the authority to represent you directly before the IRS — communicating on your behalf, halting collection activity, and negotiating the most favorable resolution available under the law.
Every tax resolution case is different. We begin with a thorough analysis of your tax history, outstanding liabilities, and financial position — then build a strategy tailored to your specific circumstances.
The IRS charges up to 25% of unpaid taxes for failure to file — on top of the failure-to-pay penalty and compounding interest.
The IRS has 10 years from assessment to collect a tax debt. Strategic use of this statute is a core element of every resolution plan.
Roughly 40% of Offers in Compromise submitted to the IRS are accepted. Professionally prepared submissions significantly outperform self-filed offers.
A licensed CPA can file a Power of Attorney and represent you directly before the IRS — so you never have to speak with an agent alone.
Resolution Services
Every IRS Problem Has a Resolution Path
Offer in Compromise
An Offer in Compromise (OIC) allows qualifying taxpayers to settle their IRS tax debt for less than the full amount owed. The IRS evaluates your ability to pay, income, expenses, and asset equity. We prepare and submit a compelling OIC package — maximizing your chances of acceptance while minimizing your settlement amount.
- Full financial analysis and OIC eligibility assessment
- Preparation of Form 656 and supporting documentation
- Negotiation with IRS Appeals and Collection divisions
- Collection activity suspension during OIC review
- Post-acceptance compliance monitoring
Installment Agreements & Payment Plans
When full payment is not possible, an IRS installment agreement allows you to pay your tax debt over time. We negotiate the most favorable payment terms available — including partial pay installment agreements that may result in a portion of your debt expiring under the statute of limitations.
- Streamlined, guaranteed, and partial pay installment agreements
- Currently Not Collectible (CNC) status for hardship cases
- Negotiation of monthly payment amounts
- Prevention of federal tax liens during agreement
- Statute of limitations strategy
Penalty Abatement
The IRS assesses substantial penalties for failure to file, failure to pay, and accuracy-related errors. Many of these penalties can be reduced or eliminated entirely through first-time penalty abatement, reasonable cause abatement, or administrative waivers. We identify every abatement opportunity and pursue them aggressively.
- First-time penalty abatement (FTA) requests
- Reasonable cause penalty abatement
- IRS Form 843 preparation and submission
- Interest abatement where applicable
- Penalty reconsideration for assessed penalties
IRS Audit Representation
Facing an IRS audit alone is a significant disadvantage. We represent you through correspondence audits, office audits, and field examinations — communicating directly with IRS agents, organizing documentation, and protecting your rights throughout the process.
- Correspondence, office, and field audit representation
- Document organization and response preparation
- Direct communication with IRS examiners
- Appeals representation if audit results are disputed
- Tax Court representation referral if required
Unfiled Tax Returns
Unfiled returns trigger IRS substitute-for-return filings that almost always result in higher tax assessments than if you had filed yourself. We prepare and file all delinquent returns — often reducing the IRS's assessment significantly — and bring you back into compliance before enforcement action escalates.
- Preparation of multiple years of delinquent returns
- Reduction of IRS substitute-for-return assessments
- Voluntary disclosure strategy to minimize penalties
- Coordination with IRS to establish compliance
- State tax return delinquency resolution
Wage Garnishment & Bank Levy Release
IRS wage garnishments and bank levies can be released — often within days — when you engage qualified representation and take the right steps. We contact the IRS immediately, establish a resolution path, and secure a levy release to restore access to your income and accounts.
- Emergency levy and garnishment release
- IRS Collection Due Process (CDP) hearing requests
- Federal tax lien subordination and withdrawal
- Currently Not Collectible status for immediate relief
- Long-term resolution to prevent recurrence
Innocent Spouse Relief
If your tax liability stems from a spouse or former spouse's errors or omissions on a joint return, you may qualify for innocent spouse relief — separating your liability from theirs. We evaluate your eligibility and pursue all available relief options under IRC Section 6015.
- Innocent spouse, separation of liability, and equitable relief
- Form 8857 preparation and submission
- IRS Appeals representation
- Coordination with divorce and family law counsel
- State innocent spouse relief where available
Trust Fund Recovery Penalty Defense
Business owners and officers can be held personally liable for unpaid payroll taxes through the Trust Fund Recovery Penalty (TFRP). We defend against TFRP assessments, challenge responsible person determinations, and negotiate resolutions that protect your personal assets.
- Responsible person determination challenges
- Form 4180 interview preparation and representation
- TFRP assessment appeals
- Personal liability minimization strategy
- Payroll tax compliance going forward
Our Approach
How We Resolve Your Tax Problem
Confidential Consultation
We begin with a private consultation to understand your situation — what you owe, what notices you have received, and what collection action is pending. Everything discussed is protected by CPA-client privilege.
IRS Transcript Analysis
We pull your complete IRS account transcripts to establish the exact tax years at issue, the amounts assessed, penalties and interest accrued, and the collection statute expiration dates — information critical to building your resolution strategy.
Resolution Strategy
Based on your financial position and IRS account history, we identify every resolution option available to you — Offer in Compromise, installment agreement, penalty abatement, Currently Not Collectible status, or a combination — and recommend the optimal path.
IRS Representation
We file a Power of Attorney (Form 2848), take over all communication with the IRS, and implement your resolution strategy. You are no longer required to speak with IRS agents directly.
Resolution & Compliance
Once your resolution is accepted, we ensure you remain in compliance going forward — filing returns on time, meeting payment obligations, and monitoring your IRS account to prevent future problems.
Common Questions
Frequently Asked Questions
Can the IRS really settle my tax debt for less than I owe?
Yes — through the Offer in Compromise program. The IRS will accept less than the full amount owed when it determines that the offered amount represents the most it can reasonably expect to collect given your financial circumstances. Not everyone qualifies, but a thorough financial analysis will determine whether an OIC is viable in your case.
What happens if I ignore IRS notices?
Ignoring IRS notices accelerates the collection process. After a series of notices, the IRS can file a federal tax lien, levy your bank accounts, garnish your wages, and seize assets — all without a court order. The sooner you engage representation, the more options are available to you.
How long does IRS tax resolution take?
It depends on the resolution path. Penalty abatement requests can be resolved in weeks. Installment agreements are typically established within 30–60 days. An Offer in Compromise review currently takes 6–12 months. We provide a realistic timeline during your initial consultation.
Will the IRS stop collection action while my case is being resolved?
In most cases, yes. Filing an Offer in Compromise, requesting a Collection Due Process hearing, or establishing an installment agreement suspends active collection activity. We take steps to halt levies and garnishments as quickly as possible after engagement.
Do I need a tax attorney or will a CPA suffice?
A licensed CPA has full authority to represent you before the IRS — including in audits, appeals, and collection matters — through a Power of Attorney. Tax attorneys are typically engaged when criminal tax issues are present or when Tax Court litigation is required. For the vast majority of tax resolution cases, a CPA provides equivalent representation at lower cost.
Your Tax Problem Has a Solution.
Schedule a confidential consultation with Paul Ethan CPA Firm, PLLC. We will review your IRS notices, analyze your account, and tell you exactly what your options are — with no obligation.