Tax Relief in Seattle, Washington
A strong income does not make anyone immune to tax trouble. Sometimes it is the very thing that causes it. Fresh Start Tax Relief Services helps taxpayers across the Seattle metro area resolve IRS balances that grew out of stock compensation, a big year, or payments that slipped through the cracks. We are a women-owned business based in Pasadena, California, and our licensed tax agents have decades of experience dealing with the IRS.
Helping Taxpayers Across the Seattle Area
Clients throughout greater Seattle reach us by calling (800) 250-8884 or submitting our online application. We begin with a thorough assessment of your tax situation, then build a customized plan around it. The Pacific Northwest is part of our territory too: "Not only do we service every single county in California, but we service taxpayers nationwide."
When Stock Compensation Leaves You Owing
Many Seattle-area workers receive part of their pay in company stock. When restricted stock units vest, employers often withhold federal tax at a flat 22% supplemental rate. For anyone whose income places them in a higher bracket, that withholding falls short, and the gap shows up as a balance due at filing time.
Add a stock sale and the capital gains that come with it, and a household that felt well ahead can suddenly owe more than it has set aside. If the balance cannot be paid by the deadline, penalties and interest start to build.
When a Big Income Still Leaves a Big Balance
Owing the IRS is not only a problem for people with low incomes. When you owe taxes you cannot pay in one go, the right move depends on the size of the balance, your cash flow, and what else is going on in your life. Some clients need a structured payment plan. Others benefit from penalty abatement on penalties that accrued during a hard stretch. A few need help filing returns they put off once the bill got scary.
We look at the full picture before recommending anything, and we explain each option in plain terms so you can make the call with confidence.
Is Settling for Less Realistic?
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. The IRS weighs your income and assets against what it believes it could collect. For many higher earners, that math points toward an installment agreement rather than a settlement.
We will tell you which way your numbers lean. Honest, realistic solutions are the only kind we offer, and that is true whether the answer is good news or not.
Washington's Tax Picture
Washington does not tax wages or personal income the way most states do, so for most individuals in Seattle, the debt in question is owed to the IRS. Business owners can be different, since a Washington business may also deal with a state revenue office. We help resolve business tax debt and work on reinstating businesses that have been shut down by the IRS or a state revenue office.
Clear Communication Every Step of the Way
A tax case can take time, and silence makes the wait harder. We keep you updated throughout the process, explain what is happening at each stage, and handle communication with the IRS for you. Learn more about our team on the Fresh Start Tax Relief home page.
Frequently Asked Questions
Do you work with taxpayers in Seattle?
Yes. We help clients throughout the Seattle metro area and taxpayers nationwide from our office in Pasadena, California.
Why do I owe the IRS after my stock vested?
Employers often withhold federal tax on vested stock at a flat 22% supplemental rate. If your income puts you in a higher bracket, you owe the difference when you file.
Can I settle for less if my income is high?
An Offer in Compromise requires meeting certain financial guidelines, and the IRS considers what it could collect from your income and assets. Higher earners are often better served by an installment agreement.
Does Washington have a state income tax?
Washington does not tax wages or personal income the way most states do, so individual income tax debt for Seattle residents is generally owed to the IRS.
What is the first thing you do on a new case?
We start with a thorough assessment of your tax situation. From there, we develop a customized plan that may include a settlement, penalty abatement, or an installment agreement.