Services
Tax Resolution Services for Individuals
and Businesses in DFW
At Parr & Ibarra CPA, we help individuals and business owners in the Dallas–Fort Worth area resolve IRS and state tax problems through the programs and processes the IRS actually offers — not through promises that sound too good to be true. Adan Ibarra is a licensed CPA with Circular 230 representation authority and legal education. He communicates directly with the IRS on your behalf, evaluates every available resolution option, and pursues the outcome that is genuinely achievable given your specific facts.
If you have a tax problem, the worst thing you can do is wait. Every month a tax debt goes unresolved, penalties and interest compound — and the IRS’s collection tools become more aggressive.
Related Articles
Insights
- All Posts
- Tax Planning
- IRS Representation & Resolution
Learn which costs the IRS disallows under 26 U.S.C. §274, the 50% meals rule, and a bookkeeping checklist small businesses...
IRS Offer in Compromise requirements made practical: calculate your Reasonable Collection Potential with a worked example, follow the pre filing...
Practical guide from a CPA on IRS installment agreements: which plan fits, real fees ($29–$178), when to apply online and...
Ways We Can Help
IRS Tax Resolution Programs and Options
Tax resolution is the process of identifying and implementing a formal solution to an outstanding IRS or state tax liability. It is not a loophole, and it is not a negotiation where the IRS simply accepts whatever you offer. It is a structured process with specific eligibility requirements, documentation standards, and procedural rules — and the outcome depends on presenting your financial situation accurately and completely.
The IRS offers several resolution programs for taxpayers who cannot pay their full liability. Which program applies to you depends on your income, assets, expenses, equity in property, employment status, business structure, and the nature and age of the underlying tax debt. A licensed CPA who understands these programs evaluates your situation against each option — not just the one that is easiest to market.
Installment Agreement
The most common IRS resolution for taxpayers who cannot pay their full balance immediately. Streamlined agreements — available for balances under $50,000 — require minimal financial disclosure and can be established quickly. Partial pay installment agreements — for taxpayers who cannot fully pay before the collection statute expires — require detailed financial documentation. We evaluate which agreement type fits your situation and negotiate the monthly payment based on IRS collection financial standards.
Offer in Compromise
An Offer in Compromise allows a taxpayer to settle IRS debt for less than the full amount owed when full payment would create economic hardship or when there is genuine doubt as to collectibility. The IRS calculates the minimum acceptable offer using a specific formula based on net equity in assets and future income capacity — not negotiation. We run your numbers through that formula before recommending this option. If the math does not support an acceptable offer, we tell you before you wait eighteen months for a rejection.
Currently Not Collectible Status
When a taxpayer’s income does not exceed their allowable living expenses and they have no collectible assets, the IRS can classify the account as currently not collectible — stopping active collection while the situation stabilizes. Penalties and interest continue to accrue and the status is reviewed periodically, making this a pause rather than a permanent resolution. For taxpayers in genuine financial hardship, it provides immediate relief while a longer-term plan is developed.
Penalty Abatement
IRS penalties for failure to file, failure to pay, and accuracy-related errors are not always final. First-time penalty abatement is available to taxpayers with a clean three-year compliance history. Reasonable cause abatement applies when circumstances beyond the taxpayer’s control — serious illness, natural disaster, or reliance on incorrect professional advice — caused the noncompliance. We evaluate your eligibility and submit formal abatement requests with supporting documentation.
Innocent Spouse Relief
When a joint return understates income or overstates deductions due to one spouse’s actions — and the other spouse had no knowledge and no reason to know — the innocent spouse may be relieved of the resulting tax, penalties, and interest. Three forms of relief are available: traditional innocent spouse relief, separation of liability, and equitable relief. Each has distinct eligibility requirements. We evaluate which applies to your situation and prepare the formal request.
Lien and Levy Release
A federal tax lien is a legal claim against your property that affects your ability to sell assets or obtain financing. A levy is the actual seizure — bank accounts, wages, or physical property. Liens are released when the liability is paid, settled through an Offer in Compromise, or has expired. Levies can be released when the liability is resolved or when the levy is causing economic hardship. We communicate directly with the IRS to pursue lien and levy releases as part of every resolution engagement where they are present.
Wage Garnishment Release
The IRS can garnish a significant portion of your take-home pay without a court order — it only needs to have issued a final notice of intent to levy. A garnishment can be released by entering an installment agreement, establishing currently not collectible status, or submitting an Offer in Compromise. We pursue garnishment release as an immediate priority while a longer-term resolution is being established.
Unfiled Tax Returns
Taxpayers with unfiled returns face compounding exposure: the IRS may file a substitute return on unfavorable terms, the failure-to-file penalty accrues at 5% per month up to 25%, and collection action can begin on the resulting balance. We prepare and file all outstanding returns accurately — with all available deductions — and coordinate resolution of any resulting liability as part of the same engagement.
Statute of Limitations on Collection
The IRS generally has ten years from the date of assessment to collect a tax liability. Once the collection statute expires, the liability is legally uncollectible. For taxpayers with older liabilities and limited ability to pay, the remaining statute period is an important factor in evaluating resolution options. We analyze applicable statute dates as part of every resolution evaluation.
Parr & Ibarra CPA is a member of the Tax Protection Plus network — a national audit resolution program backed by credentialed Enrolled Agents and CPAs. Clients who file with our firm have access to structured audit support and IRS notice representation through this network in addition to our in-house representation services.
We serve clients throughout Hurst, Keller, Grapevine, Addison, and the broader Dallas–Fort Worth area. Most resolution work is handled remotely — IRS correspondence, transcripts, and documentation can all be managed electronically — though in-person consultations are available at any of our four DFW offices.
Business Tax Resolution
Tax Resolution for Business Owners and Employers
Business tax problems carry additional complexity and additional urgency. Unpaid payroll taxes — the employee portion of federal taxes withheld from paychecks — are treated with particular seriousness by the IRS because those funds were withheld from employees and held in trust. Failure to remit them is not just a collection matter; it creates personal liability exposure for business owners and responsible parties through the trust fund recovery penalty.
We handle business tax resolution matters including unpaid payroll tax liabilities and IRS payroll tax installment agreements, trust fund recovery penalty investigations and personal liability assessments, business installment agreements for income and excise tax liabilities, currently not collectible status for businesses experiencing genuine financial hardship, resolution of IRS examination adjustments that created unexpected business tax liabilities, and coordination of business tax resolution with the owner’s personal tax situation.
For business owners, the business liability and the personal liability are rarely independent. Decisions made to resolve one affect the other. Working with a CPA who prepares both the business and personal returns — and handles the resolution — eliminates the coordination failures that occur when different firms are handling different pieces of the same problem.
Who We Help With Tax Resolution
Individual taxpayers with IRS balance due notices, W-2 employees with unreported income or incorrect withholding creating unexpected balances, self-employed individuals and independent contractors with unpaid self-employment tax, small business owners with payroll tax delinquencies, business owners personally assessed under the trust fund recovery penalty, taxpayers with multiple years of unfiled federal returns, individuals facing IRS wage garnishments or bank levies, taxpayers who previously worked with a resolution firm and did not receive satisfactory results, divorced individuals seeking innocent spouse relief from a joint liability, and high-income individuals with examination adjustments that created unexpected large liabilities.
What to Expect When You Work With Us
Step 1 — Situation Assessment
We begin with a complete review of your tax situation — IRS transcripts, all notices and letters received, unfiled return years, existing liens or levies, and the current balance including penalties and interest. We pull your IRS account transcripts directly so the information we are working from is current and accurate.
Step 2 — Resolution Evaluation
We evaluate every available resolution option against your specific facts — income, expenses, assets, liabilities, and compliance history. We tell you which programs you qualify for, what each one requires, and what outcome is realistically achievable. We do not recommend an Offer in Compromise if your collection potential does not support it, and we do not recommend an installment agreement if a penalty abatement or currently not collectible determination is more appropriate.
Step 3 — IRS Communication
We file a Power of Attorney (Form 2848) and communicate directly with the IRS on your behalf from that point forward. You do not speak with IRS agents or respond to IRS correspondence directly. Every communication goes through us.
Step 4 — Documentation and Submission
We prepare all required financial documentation — Form 433-A for individuals, Form 433-B for businesses — and submit the resolution request with complete supporting documentation. Incomplete or inaccurate financial disclosures are the most common reason resolution requests are rejected or returned.
Step 5 — Resolution and Compliance
Once a resolution is established, we help you stay in compliance — because most IRS resolution agreements require that you remain current on all future tax obligations. A missed estimated tax payment or a late return can default an installment agreement and reopen the entire liability. We monitor your compliance as part of the ongoing engagement.
Frequently Asked Questions
Knowledge Center
Can the IRS really settle my tax debt for less than I owe?
Yes — through the Offer in Compromise program — but eligibility is determined by a specific formula, not by negotiation. The IRS calculates the minimum acceptable offer based on your net equity in assets plus a multiple of your monthly disposable income. If your collection potential is lower than your total liability, an Offer may be viable. If not, other resolution options — installment agreements, currently not collectible status, or penalty abatement — may be more appropriate. We run your numbers through the IRS formula before recommending this option.
How long does tax resolution take?
It depends on the resolution path. A streamlined installment agreement for balances under $50,000 can be established within a few weeks. Offers in Compromise currently take twelve to eighteen months from submission to a final determination. Currently not collectible determinations can often be established relatively quickly once the financial documentation is complete. Penalty abatement requests typically receive a response within sixty to ninety days. We set realistic timelines at the start of every engagement.
Will tax resolution hurt my credit score?
A federal tax lien — which the IRS files when a balance is unpaid after notice and demand — does appear in public records and can affect your ability to obtain financing. However, federal tax liens no longer appear on the major consumer credit bureau reports as of 2018, so the direct credit score impact is more limited than it once was. Resolving the underlying liability and requesting lien withdrawal — which the IRS may grant once an installment agreement is established — is the path to clearing the lien from the public record.
What is the difference between a tax lien and a tax levy?
A lien is a legal claim against your property that gives the IRS a security interest in everything you own — real estate, financial accounts, vehicles, and other assets. It attaches automatically when the IRS assesses a balance, sends a notice demanding payment, and you fail to pay within ten days. A levy is the actual seizure of property or income — a bank account freeze, wage garnishment, or seizure of physical assets. A lien can exist without a levy, but a levy is a more immediate and disruptive collection action. Both can be addressed through the resolution process.
Do I still owe the IRS if I file for bankruptcy?
Some tax debts are dischargeable in bankruptcy — specifically, income tax liabilities that meet certain age and filing requirements — but many are not. Payroll taxes, trust fund penalties, tax liens that attached to property before the bankruptcy filing, and recent income tax liabilities generally survive bankruptcy. The interaction between tax debt and bankruptcy is complex and depends on the specific facts of your situation. We work with bankruptcy counsel when appropriate to evaluate whether tax debts are dischargeable and how the two processes interact.
What happens if I ignore IRS notices?
The IRS follows a structured collection sequence. Ignored notices progress from balance due notices to final notice of intent to levy — which triggers the IRS’s authority to garnish wages, freeze bank accounts, and seize property. The IRS does not need a court order to levy. Ignoring notices does not make the problem go away; it removes your opportunity to resolve it on favorable terms before collection action begins. If you have received IRS notices you have not responded to, contact us immediately. The earlier in the collection sequence we engage, the more resolution options remain available.
Can you help if I already tried to resolve this on my own or through another firm?
Yes. We regularly work with clients who self-prepared an Offer in Compromise that was rejected, entered an installment agreement they can no longer afford, or paid fees to a national resolution firm without satisfactory results. We review what was submitted, assess what options remain, and determine whether a new submission or a different resolution path is appropriate given the current facts.
Contact Us
Ready to Resolve Your Tax Problem?
The sooner you address an IRS tax problem, the more options you have. Parr & Ibarra CPA serves individuals and businesses throughout Hurst, Keller, Grapevine, Addison, and the broader DFW area.
Contact us to review your situation and find out what resolution is realistically available to you.
