IRS & State tax debt relief

Tax Debt Resolution Services

Owe back taxes, received IRS notices, or facing a lien or levy? Fiotax helps individuals and business owners understand their options, get compliant, and pursue a practical resolution with the IRS or state taxing authority.

Every case is different. The appropriate solution depends on the tax years involved, the accuracy of the balance, filing history, income, assets, expenses, and collection deadlines. Our role is to assess the facts, communicate professionally with the taxing authority when authorized, and help implement the resolution strategy that best fits your circumstances.

Important: Tax relief is not one-size-fits-all, and no specific outcome can be guaranteed. Eligibility for any resolution option is determined by the IRS or applicable state agency based on the 

Tax Debt Resolution Services

Owe back taxes, received IRS notices, or facing a lien or levy? Fiotax helps individuals and business owners understand their options, get compliant, and pursue a practical resolution with the IRS or state taxing authority.

Every case is different. The appropriate solution depends on the tax years involved, the accuracy of the balance, filing history, income, assets, expenses, and collection deadlines. Our role is to assess the facts, communicate professionally with the taxing authority when authorized, and help implement the resolution strategy that best fits your circumstances.

Important: Tax relief is not one-size-fits-all, and no specific outcome can be guaranteed. Eligibility for any resolution option is determined by the IRS or applicable state agency based on the taxpayer’s facts and compliance status.

How Our Process Works

1. Confidential consultation and case review

We start by learning what happened and where things stand today.

During the initial review, we discuss:

• IRS or state notices you have received
• The amount believed to be owed and the tax years involved
• Whether tax returns are missing or unfiled
• Current collection activity, such as wage garnishment, bank levy, lien, or collection letters
• Your income, household expenses, assets, business operations, and ability to pay
• Any important deadlines, especially appeal rights shown on IRS notices

This first step helps us identify the urgency of the case and determine what records, transcripts, and filings are needed before recommending a strategy.

Bring or upload: IRS/state notices, prior tax returns, wage or income records, bank statements, business financials, and documents supporting major expenses or hardship.

2. Authorization and transcript investigation

When appropriate, you authorize Fiotax to communicate with the IRS on your behalf through a properly executed authorization, such as Form 2848, Power of Attorney and Declaration of Representative.

We then work to verify the facts—not simply rely on the balance shown on a notice.

Our review may include:

• IRS account transcripts to confirm assessed balances, penalties, interest, and payment history
• Wage and income transcripts to identify W-2s, 1099s, and other information reported to the IRS
• Tax return transcripts and filing history
• Collection notices, lien filings, levy notices, and deadline-sensitive correspondence
• The IRS Collection Statute Expiration Date, where relevant
• State tax balances and collection issues when applicable

This investigation is essential because the best resolution strategy depends on the actual tax periods, legal status of the debt, filing status, and collection posture.

3. Get compliant with required tax filings

In many situations, the IRS will not approve a collection alternative until required tax returns are filed and the taxpayer is current with ongoing filing and payment obligations.

Fiotax can help organize and prepare outstanding federal and state tax returns, including returns for:

• Individuals and families
• Self-employed professionals
• Independent contractors and gig workers
• Small businesses
• Corporations, partnerships, and LLCs
• Payroll-related filings, when within the scope of the engagement

Getting compliant can also help reveal whether the IRS balance is accurate. In some cases, the IRS has prepared a Substitute for Return using income reported by third parties but without deductions, credits, dependents, business expenses, or other taxpayer-specific information. Filing an accurate original return may change the assessed balance.

We also help establish a forward-looking compliance plan so that new tax debt does not accumulate while the older balance is being resolved.

4. Protect against collection action when possible

If collection action is underway or imminent, timing matters.

Depending on the notice received and the case facts, we may evaluate available steps to address or challenge collection activity, communicate with the appropriate IRS unit, and request time to complete compliance and submit a resolution proposal. If you receive a qualifying lien or final levy notice, you may have the right to request a Collection Due Process hearing. The deadline is commonly 30 days from the date or timeframe stated on the notice, so prompt action is critical.[1][2]

Potential collection concerns include:

• Bank account levies
• Wage garnishments
• Federal tax lien filings
• Seizure or levy of receivables and certain assets
• Offset of tax refunds
• Collection letters, revenue officer contact, or automated collection activity

A Collection Due Process hearing can provide an opportunity to present a collection alternative—such as an installment agreement, Offer in Compromise, or currently not collectible status—before certain levy action proceeds.[2][3]

Do not ignore a levy or lien notice. Send Fiotax a copy as soon as possible so we can identify the deadline and evaluate available options.

5. Analyze the best resolution option

After the account is verified and compliance issues are addressed, Fiotax evaluates the available paths. The right answer is based on your financial reality and the agency’s rules—not on a generic “settle for pennies” promise.

Resolution path - What it may do - Often appropriate when

Full payment

1. Resolves the balance in one payment, subject to final interest and penalty calculations

• You have available funds or financing and want the quickest closure

Installment agreement

1. Allows payment of the tax debt over time through monthly payments

• You can pay, but not all at once

Offer in Compromise

1. Requests that the IRS accept less than the full balance as a settlement

• You cannot reasonably pay the full liability and meet IRS eligibility standards

Currently Not Collectible status

1. Requests a temporary pause in active collection due to financial hardship

• Paying would prevent you from covering allowable basic living expenses

Penalty relief

1. Requests reduction or removal of certain penalties when facts and eligibility support it

• A valid reasonable-cause or administrative-relief basis exists

Appeal or liability review

1. Challenges or reviews a collection action, assessment, or procedural issue when rights remain available

• There is a legal, factual, or procedural basis and a deadline has not passed

An Offer in Compromise is a formal IRS program that may allow settlement for less than the full tax debt when the taxpayer cannot pay the full amount or meets other qualifying grounds. It is not available to everyone, and the IRS evaluates income, expenses, assets, and future ability to pay.

Currently Not Collectible status generally does not eliminate the debt. It may temporarily delay active IRS collection when payment would create hardship; interest and penalties can continue to accrue, and the IRS may reassess the taxpayer’s financial condition later.

6. Build and submit a complete financial proposal

Most tax debt resolutions require clear, well-supported financial documentation. Fiotax helps prepare the information needed to present an accurate picture of your ability to pay.

Depending on the strategy, this may include:

• Personal financial statements
• Business financial statements
• Income and expense analysis
• Bank statements and proof of deposits
• Pay stubs, profit-and-loss statements, and balance sheets
• Asset and equity information
• Mortgage, vehicle, loan, and credit documentation
• Proof of necessary household expenses
• Tax filing and payment compliance records
• Forms and supporting documents required for the selected resolution path

The goal is to submit a proposal that is accurate, complete, timely, and aligned with the financial standards and documentation requirements used by the IRS or state agency.

7. Representation and negotiations

Once the strategy is selected, Fiotax works through the resolution process with the taxing authority within the scope of the engagement.

This may include:

• Communicating with IRS collections personnel, the Automated Collection System, or other authorized units
• Responding to notices and requests for supporting documents
• Requesting or negotiating payment arrangements
• Preparing and submitting an Offer in Compromise package, when appropriate
• Requesting hardship-based collection relief
• Seeking penalty relief where a supportable basis exists
• Addressing federal tax lien issues when resolution progress supports it
• Coordinating appeal requests where applicable
• Keeping you informed of requests, deadlines, and next steps

The IRS’s collection appeal procedures allow eligible taxpayers to seek review of certain lien and levy actions. For qualifying Collection Due Process notices, Form 12153 is generally used to request a hearing with the IRS Independent Office of Appeals.

8. Decision, implementation, and follow-through

When the IRS or state agency accepts a resolution, Fiotax helps you understand and implement the terms.

That may mean:

• Setting up and monitoring direct-debit installment payments
• Making required Offer in Compromise payments
• Meeting future filing and estimated-tax obligations
• Maintaining current payroll tax deposits and returns for business owners
• Responding to post-submission requests
• Reviewing notices to confirm that the account reflects the approved arrangement
• Discussing steps that may be available after resolution, such as lien withdrawal requests where eligibility requirements are met

Resolution is not complete simply because an application has been submitted. A durable result requires compliance with the terms of the agreement and timely filing and payment going forward.

Common Tax Debt Issues We Handle

Fiotax assists with a range of federal and state tax-debt matters, including:

• Unpaid individual income taxes
• Back taxes from self-employment or independent-contractor income
• IRS installment agreements
• Offer in Compromise evaluations and submissions
• Currently Not Collectible hardship requests
• Unfiled tax returns
• Penalty-abatement requests
• Wage garnishment and bank-levy concerns
• Federal tax liens
• IRS notices and collection letters
• Small-business and owner-related tax issues
• Estimated-tax planning to prevent future balances due
• State tax debt matters, subject to engagement scope and jurisdiction

What Makes a Strong Tax Resolution Case?

A successful strategy begins with a complete, accurate, and supportable presentation of the facts. In most cases, the strongest file includes:

• All required returns filed
• Accurate current financial information
• Documentation supporting income, expenses, assets, and hardship claims
• A realistic proposal that fits the taxpayer’s actual ability to pay
• Timely action on notices and appeal deadlines
• Ongoing compliance with future tax obligations

Fiotax does not promote shortcuts or guaranteed settlements. We focus on identifying the lawful, practical option that fits your tax situation and helping you pursue it professionally.

Why Act Promptly?

Tax balances can grow because interest and penalties may continue to accrue. More importantly, notices can include short response periods and appeal deadlines. A final IRS notice of intent to levy or a federal tax lien notice may give the taxpayer a limited window—commonly 30 days—to request a Collection Due Process hearing.

The earlier you address the matter, the more options may be available to you.

Schedule a Tax Debt Resolution Consultation

If you owe back taxes, have unfiled returns, received an IRS notice, or are concerned about a lien, levy, or wage garnishment, Fiotax can help you evaluate the situation and develop a clear plan.

Start with a confidential tax debt review. We will assess your notices, filing status, balance due, financial position, and potential resolution options so you can move forward with a better understanding of your next steps.

Call Fiotax today or submit a consultation request to discuss your tax debt resolution needs.

Note:

Fiotax provides tax preparation, tax representation, and tax-resolution support within the scope of its professional engagement. Outcomes vary based on individual facts, documentation, taxpayer compliance, and taxing-authority approval. No refund, settlement amount, penalty reduction, lien release, levy release, or other result is guaranteed. Taxpayers remain responsible for the accuracy of information provided and for meeting all future tax filing and payment obligations. facts and compliance status.