Owe Taxes You Can't Pay? Licensed Tax Agents in Pasadena, CA Can Help
Finding out you owe more than you have is a sinking feeling, and it is one millions of taxpayers share every year. The good news is that owing the IRS is a problem with real, structured solutions. At Fresh Start Tax Relief Services in Pasadena, our licensed tax agents help people who owe taxes figure out what they actually owe, what their options are, and which path makes the most sense. We are a women-owned business with decades of experience dealing with the IRS.
First, Do Not Skip Filing
When people realize they cannot pay, many decide not to file at all. That is one of the most expensive mistakes you can make. The penalty for not filing is generally 5% of the unpaid tax per month, while the penalty for not paying is generally 0.5% per month. Filing on time, even without a payment, keeps the larger penalty off your account. If you have already missed a year or more, our
filing tax returns service can bring those years current.
Your Main Options When You Owe Taxes
There is no one answer for everyone. These are the paths we look at most often.
Pay Over Time
An installment agreement lets you pay your balance in monthly payments. Short-term plans give you up to 180 days, and longer plans can stretch payments over several years depending on how much you owe. We negotiate the terms so the payment fits your budget.
Settle for Less
An Offer in Compromise can settle a tax liability for a fraction of what is owed, but only for taxpayers who meet certain financial guidelines. We review your income, expenses, and assets to see whether you qualify before recommending it.
Reduce the Penalties
Penalty abatement can address penalties that have built up on your balance. Removing them can make the remaining debt far easier to handle, whether you pay in full or over time.
Know Your Real Number
It is hard to make a plan when you are not sure what you owe. Your IRS Online Account shows your current balance, the tax years involved, and your payment history. We review those figures with you, check whether penalties or interest have been calculated correctly, and look for years where the balance may be overstated because a return was never filed or was filed without deductions.
Mistakes That Make Things Worse
When the bill feels overwhelming, it is easy to react in ways that create new problems. Ignoring IRS letters lets notices escalate toward collections and, eventually, a levy on your bank account or wages. Charging the full balance to a high-interest credit card can trade one debt for a more expensive one. Paying anyone who calls claiming to be the IRS and demanding immediate payment can mean losing money to a scam. Before you take any of these steps, talk with someone who knows the system.
How We Help
We start by listening to your situation and your goals. Then we review your account, explain each realistic option in plain language, and handle communication with the IRS for you. We will also be honest if an option is not a fit for you. Not everyone qualifies to settle, and you will hear that from us up front.
Serving Pasadena and Taxpayers Nationwide
Our office serves clients in Pasadena, San Gabriel, Sierra Madre, Glendale, and throughout Los Angeles County. Wherever you live, we can help: "Not only do we service every single county in California, but we service taxpayers nationwide." Learn more about the Tax Superwomen on the Fresh Start Tax Relief home page.
Frequently Asked Questions
Should I file my return if I cannot pay what I owe?
Yes. The failure-to-file penalty is generally 5% of the unpaid tax per month, compared with 0.5% per month for failure to pay, so filing on time keeps your penalties much lower.
How can I find out exactly how much I owe the IRS?
Your IRS Online Account shows your current balance, the tax years involved, and your payment history. We review those figures with you to confirm they are accurate.
Does paying part of the balance now help?
Yes. Any amount you pay reduces the unpaid balance that penalties and interest are calculated on, so partial payments lower what accrues going forward.
Can I pay the IRS with a credit card?
Yes, through IRS-approved payment processors, which charge a fee. Card interest is often higher than the cost of an IRS payment plan, so compare both before deciding.
What happens if I do nothing about my tax debt?
IRS notices escalate over time. A certified letter means your account is in collections, and an Intent to Levy notice can be followed by a bank or wage levy.