IRS Resolutions
FAQ
1
Is a CP2000 notice a bill?
2
How long do I have to respond to an IRS notice?
3
How many years of unfiled tax returns do I need to file?
4
Can I set up an IRS payment plan?
5
Can iQTAXX get rid of my IRS debt?
6
7
8
9
10
By the iQTAXX tax team, 6360 S Rainbow Blvd, Suite 101, Las Vegas. Updated October 29, 2026. Facts checked on irs.gov and taxpayeradvocate.irs.gov on October 29, 2026.
Quick answer If you owe the IRS or got an IRS letter in Las Vegas, iQTAXX helps you read the notice, pull your IRS transcripts with your permission, file any missing or amended returns, answer CP2000 letters, request a payment plan and ask for first-time penalty relief. We are tax preparers, not CPAs, enrolled agents or attorneys, so when a case needs full IRS representation (a revenue officer, an offer in compromise, IRS Appeals or Tax Court) we tell you up front; we are open year-round, not seasonal, have served Las Vegas since 2008, and our fees depend on your forms and your case, so call 702-871-7884 for a quote.
Call iQTAXX at 702.871.7884 for a quote (booking is by phone call only; we don't book by text or online) · 6360 S Rainbow Blvd, Suite 101, Las Vegas, NV 89118 · Open year-round, not seasonal
Key facts about IRS tax debt and notices (checked October 29, 2026)
"IRS resolution" means getting a tax problem with the IRS to a settled, stable place: the right returns filed, the right balance on the account, and an arrangement the IRS has accepted for anything you still owe. For most Las Vegas households and small businesses, the problem is not a crime or an audit. It is a letter about income that didn't match, a balance that grew because of penalties and interest, or a few years of returns that never got filed.
The IRS's own advice is to start with the basics. File any missing returns, look at what the IRS says you owe, and then pick a way to pay or resolve it. The IRS puts it plainly: "The first step toward resolving a tax debt is to file missing returns," and "You'll qualify for more options once you file" (IRS, Get help with tax debt).
That is where iQTAXX fits. Because we prepare returns all year, we can rebuild missing years, fix a wrong return with Form 1040-X, and get your filings current. Then we help you understand which IRS option fits your numbers and help you request a payment plan or first-time penalty relief. When the case needs someone who can fully represent you before IRS Collection or Appeals, we say so on the first call.
Here is the order we follow on most cases:
The IRS sets who may speak for you and on which matters. Attorneys, CPAs and enrolled agents "are the only tax professionals with unlimited representation rights, meaning they can represent their clients on any matters including audits, payment/collection issues, and appeals" (IRS, Annual Filing Season Program). Other paid preparers have limited rights or none. We are open about which side of that line each part of your case sits on.
| Task | iQTAXX | Who handles it if not us |
|---|---|---|
| Read and explain your IRS notice | Yes | Not needed |
| Pull IRS transcripts with your written permission (Form 8821) | Yes | Not needed |
| Prepare past-due returns for any year | Yes | Not needed |
| Prepare amended returns (Form 1040-X) | Yes | Not needed |
| Prepare a CP2000 response with the signed response form and documents | Yes | Not needed |
| Help you request a payment plan (online or Form 9465) | Yes | Not needed |
| Ask for first-time penalty relief | Yes | Not needed |
| Collection cases with an assigned IRS revenue officer | No | CPA, enrolled agent or tax attorney with Form 2848 |
| Offer in compromise (Form 656) | No | CPA, enrolled agent or tax attorney |
| IRS Appeals and Collection Due Process hearings | No | CPA, enrolled agent or tax attorney |
| U.S. Tax Court | No | Tax attorney or other person admitted to practice before the Tax Court |
If your case moves into the right-hand column, you don't lose the work already done. The returns we filed and the transcripts we pulled are the same records a representative will need, and the IRS will not accept most resolution requests until those returns are filed anyway.
IRS balance-due letters usually arrive in a set order, and each one tightens the timeline. Knowing where your letter sits tells you how much time you have. If a letter looks suspicious or you can't find it on irs.gov, the IRS says to call 800-829-1040 before you pay anything (IRS, Understanding your notice or letter).
| Notice | What the IRS is telling you | What to do | Source |
|---|---|---|---|
| CP14 | You owe money on unpaid taxes; interest keeps accruing after the due date | Pay, or set up a payment plan; check the balance against your return | IRS CP14 |
| CP501 | A reminder that you still owe, with the due date and payment options | Pay by the date on the notice or request a payment plan | IRS CP501 |
| CP503 | Your second reminder; the IRS may file a Notice of Federal Tax Lien | Act now: pay, arrange a plan or call the number on the notice | IRS CP503 |
| CP504 | Notice of Intent to Levy under IRC section 6331(d); the IRS can levy your state tax refund and begin searching for other assets | Treat it as urgent; get returns and a payment arrangement in place | IRS CP504 |
| LT11 or Letter 1058 | Final notice of intent to levy and your right to a hearing | You have 30 days to request a Collection Due Process hearing on Form 12153 | IRS LT11 |
| Letter 3172 | A Notice of Federal Tax Lien was filed | You have 30 days to request a Collection Due Process hearing about the lien | IRS CDP FAQs |
| CP2000 | Not a bill: a proposed change because income reported to the IRS doesn't match your return | Agree, partly agree or disagree with documents by the date listed | IRS CP2000 |
| CP508C | Your seriously delinquent tax debt was certified to the State Department | Pay in full or make an alternative payment arrangement to reverse it | IRS passports |
Two practical points. First, the hearing deadlines in the LT11 and Letter 3172 rows are the ones that matter most, because missing them limits your appeal rights. Second, a CP2000 is a different track from a balance-due letter. It proposes a change to your return; it is not yet a bill. The IRS says, "This notice isn't a bill and your response may be required," and if you don't reply "we may send another notice and a bill" (IRS CP2000). You can send an extension request with your reply if you need more time.
The IRS offers several ways to resolve a balance. Which one fits depends on how much you owe, your income and expenses, what you own, and whether your returns are filed. The IRS's online Tax Debt Help tool asks a few questions and points you to options without asking for your Social Security number (IRS, Get help with tax debt).
| Option | Who it usually fits | Key IRS form or route | Interest and penalties | Source |
|---|---|---|---|---|
| Pay in full | You can pay now | Direct Pay, EFTPS, check or card | Stop growing once paid | IRS payment plans |
| Short-term payment plan | You owe less than $100,000 and can pay within 180 days | Online account, phone or mail | Continue until paid | IRS payment plans |
| Long-term payment plan (installment agreement) | Individuals owing $50,000 or less can usually apply online; others apply by phone or mail | Online, or Form 9465; Form 433-F if the instructions require it | Continue until paid; failure to pay penalty drops to 0.25% a month for individuals who filed on time | IRS failure to pay penalty |
| Partial payment installment agreement | You can't pay the full balance before the collection statute expires (generally 10 years) | Collection information statement (Form 433-A, 433-B or 433-F) | Continue until paid | IRS Publication 594 |
| Currently Not Collectible (CNC) | Paying anything now would cause financial hardship | Form 433-F, 433-A or 433-B plus proof of income and expenses | Continue to accrue; the IRS may file a lien and keep your refunds | IRS delay collection |
| Offer in compromise | You can't pay the full amount and qualify under IRS rules | Form 656 and the Form 656-B booklet; Pre-Qualifier tool first | The IRS suspends most collection while it reviews, and extends the collection period | IRS offer in compromise |
| Penalty relief | Clean prior three years, or a reasonable cause such as illness or disaster | Call the number on the notice, or Form 843 | Interest on removed penalties is reduced or removed too | IRS penalty relief |
| Innocent spouse relief | A spouse or former spouse caused an error on a joint return | Form 8857 | Depends on the type of relief | IRS innocent spouse |
A payment plan is the most common way Las Vegas taxpayers resolve a balance. You can apply online through your IRS online account, by phone, or by mail with Form 9465, Installment Agreement Request. If you can't make the minimum payment, the IRS directs you to a collection information statement such as Form 433-F, 433-H or 433-B (IRS, Payment plans).
The IRS charges its own setup fee for long-term plans. These are IRS user fees, set by the IRS and paid to the IRS, and they change from time to time. The figures below are from the IRS payment plans page as updated March 3, 2026:
| IRS payment plan type (IRS user fees, not iQTAXX fees) | Apply online | Apply by phone, mail or in person | Low-income taxpayers |
|---|---|---|---|
| Short-term plan (180 days or less) | $0 | $0 | $0 |
| Long-term plan with direct debit (DDIA) | $29 | $107 | Setup fee waived |
| Long-term plan with other monthly payments | $69 | $178 | $43, which may be reimbursed if conditions are met |
Low-income status generally means adjusted gross income at or below 250% of the federal poverty level, and Form 13844 is the application if the IRS didn't flag you automatically (IRS, Payment plans). Penalties and interest keep running on any plan until the balance is paid in full, which is why it often makes sense to pay as much as you can up front.
An offer in compromise lets you settle a tax debt for less than the full amount if you qualify. To be eligible you must have filed all required returns, made required estimated tax payments, not be in an open bankruptcy, and, if you are an employer, have made federal tax deposits for the current and last two quarters (IRS, Offer in compromise). Start with the IRS Offer in Compromise Pre-Qualifier tool.
The IRS's terms are strict. Every application needs a $205 application fee and a first payment unless you meet the low-income rules. With a lump-sum offer you pay 20% of the offer amount when you apply; with a periodic offer you keep making payments while the IRS reviews it. If the offer is rejected, "The application fee will not be returned," and payments go toward your balance. If it is accepted, you must meet every term in Section 7 of Form 656, and the IRS won't release federal tax liens until the offer is paid in full (IRS, Offer in compromise).
iQTAXX does not prepare or submit offers in compromise. What we can do is get every required return filed first, since an offer can't be considered without them, and tell you when an offer may be worth taking to a CPA, enrolled agent or tax attorney. Be careful with any company that tells you what the IRS will accept before it has seen your income, expenses and assets. The IRS decides, using its own standards.
If you can't pay because of financial hardship, the IRS may place your account in Currently Not Collectible status, which means it has "temporarily suspended most collection activities" (IRS, Temporarily delay the collection process). It is a pause, not forgiveness. The IRS states that penalties and interest continue to accrue, it may file a Notice of Federal Tax Lien, it will apply future refunds to the debt, and it may review your finances periodically. You will usually need Form 433-F, 433-A or 433-B and proof of income, monthly living expenses and bank balances.
Penalties can be a large part of an IRS balance, so penalty relief is often the first thing to check. The IRS now has three routes:
| Relief | How it works | What you do | Source |
|---|---|---|---|
| First Time Abate (FTA) | Removes failure to file, failure to pay or failure to deposit penalties if you have a clean compliance history for the prior three years | Call the number on your notice, or send a written statement or Form 843 | IRS FTA and AEP |
| Automatic Exemption from Penalty (AEP), new | Begins summer 2026 for 2025 tax year returns and 2026 quarterly returns; the penalty is never assessed if you have three prior years of timely compliance | Nothing; the IRS sends a letter saying AEP was applied | IRS FTA and AEP |
| Reasonable cause | For people who don't qualify for FTA or AEP but had a real reason, such as serious illness, a disaster or being unable to get records | A request explaining the facts, with documents | IRS reasonable cause |
A "clean" history means the same type of return was filed on time for the prior three years (or 12 consecutive quarters), and no penalty other than the estimated tax penalty was assessed, or any penalty was removed for reasonable cause or IRS error. When a penalty is reduced or removed, the IRS automatically reduces or removes the interest tied to it (IRS, First Time Abate and AEP). AEP covers Forms 1040, 1065 and 1120, and employment tax Forms 940, 941, 943, 944 and 945, among others.
Married couples filing jointly are each responsible for the full tax on a joint return. If your spouse or former spouse caused an error, innocent spouse relief may help. File Form 8857, Request for Innocent Spouse Relief, which covers three types: innocent spouse relief, separation of liability relief (for people who are divorced, separated or no longer living together) and equitable relief (IRS, Innocent spouse relief). You can't claim innocent spouse relief for errors you knew about or a reasonable person would have known about. Injured spouse relief (Form 8379) is different: it is for a joint refund taken to pay only your spouse's past-due debt.
For married couples filing jointly who want to save on taxes, the best protection is a correct joint return in the first place. When a couple brings us an IRS letter, we look at both spouses' income documents against what the IRS received, because CP2000 mismatches on joint returns often come from one spouse's 1099 that never made it into the return.
An unpaid balance grows in three ways. The table shows the IRS rules for individuals as published on irs.gov in 2026:
| Charge | IRS rule | Source |
|---|---|---|
| Failure to file penalty | 5% of the unpaid tax for each month or part of a month the return is late, up to 25%; a minimum penalty applies if the return is more than 60 days late | IRS failure to file |
| Failure to pay penalty | 0.5% of the unpaid tax per month, up to 25%; 0.25% a month during an approved payment plan if you filed on time; 1% a month starting 10 days after a notice of intent to levy | IRS failure to pay |
| Both in the same month | The failure to file penalty is reduced by the failure to pay penalty (for example 4.5% plus 0.5%) | IRS failure to pay |
| Interest | Federal short-term rate plus 3 points, compounded daily; 7% for October to December 2026 | IRS interest rates |
The failure to file penalty is ten times the monthly failure to pay penalty. That is the simplest reason to file on time even when you can't pay: filing stops the larger penalty, and you can work out payment after.
A federal tax lien is the government's legal claim against your property when you don't pay a tax debt. The IRS files a public Notice of Federal Tax Lien to alert creditors, and it "may limit your ability to get credit" (IRS, Understanding a federal tax lien). For Las Vegas homeowners and real estate investors, that can complicate a sale or refinance. The IRS offers four tools:
| Lien tool | What it does | IRS form or publication |
|---|---|---|
| Release | The IRS releases the lien within 30 days after the debt is paid | Automatic after payment |
| Withdrawal | Removes the public Notice of Federal Tax Lien, though you still owe the debt; one option applies to balances of $25,000 or less paid by direct debit installment agreement | Form 12277 |
| Discharge | Removes the lien from one specific property, often used in a sale | Publication 783 |
| Subordination | Keeps the lien but lets another creditor, such as a mortgage lender, move ahead of the IRS | Publication 784 |
For basic lien questions, such as a payoff amount, the IRS Centralized Lien Operation is at 800-913-6050 (IRS, Understanding a federal tax lien).
A levy is the actual seizure of property, such as wages, a bank account or a state tax refund. The IRS usually levies only after it has assessed the tax and sent a bill, you neglected or refused to pay, and it sent a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy (IRS, What is a levy). If you have an LT11 or Letter 1058, the 30-day hearing window is the most important date on your calendar. A Collection Due Process hearing request uses Form 12153, and during a CDP hearing the 10-year collection period is suspended (IRS Publication 594). Hearings are handled by representatives, not by iQTAXX, so call us early if you want your returns current before that window closes.
If you owe more than $66,000 for 2026 (the threshold is adjusted for inflation each year), the IRS can certify your debt as seriously delinquent to the State Department, which can deny or revoke a passport. The IRS does not certify people in Currently Not Collectible status, people with a pending installment agreement or offer, people timely paying an approved plan or accepted offer, identity theft victims or people in bankruptcy (IRS, Passport revocation).
If you haven't filed for several years, you are not alone, and the fix is usually more paperwork than drama. IRS policy says enforcement of delinquent returns normally reaches "not more than six (6) years" without managerial approval (IRS, IRM 1.2.1.6.18, Policy Statement 5-133). If you are owed a refund, you must file "within 3 years of the return due date" to claim it (IRS, Filing past due tax returns).
If you don't file, the IRS may file a substitute return for you, which usually leaves out deductions and credits you could claim. Even then, the IRS says "it is still in your best interest to file your own tax return." If you are missing W-2s or 1099s, the IRS wage and income transcript (Form 4506-T, or Get Transcript online) shows what employers, banks and apps reported. We use those transcripts so the returns we prepare match what the IRS already has.
Our main clients are trucking owner-operators, rideshare and gig drivers, and real estate owners, and each group tends to see the same IRS letters.
| Who | Common IRS issue | Typical cause | Where to start |
|---|---|---|---|
| Rideshare and gig drivers | CP2000 for unreported 1099-K or 1099-NEC income; balance due from self-employment tax | App income reported to the IRS but missing from the return, or no estimated payments | Match every 1099 to the return; claim the business expenses you can document |
| Trucking owner-operators | Balance due from missed quarterly estimated tax; notices about the Form 2290 heavy highway vehicle use tax | Irregular income and no withholding | Get returns filed, then set estimated payments for this year |
| Real estate owners and investors | CP2000 after a property sale (Form 1099-S); a lien that complicates a sale or refinance | Sale not reported, basis or depreciation not tracked | Report the sale correctly; ask about lien discharge or subordination |
| Married couples filing jointly | Joint balance or CP2000 from one spouse's income | A missing W-2 or 1099 for one spouse | Check both spouses' transcripts; consider innocent spouse relief if it fits |
| Casino and hospitality workers | CP2000 for W-2G gambling winnings or unreported tips | W-2G not entered, tips missing from the return | Reconcile W-2G and W-2 forms; keep a gambling log |
| Form | What it is for |
|---|---|
| Form 8821 | Tax Information Authorization: lets a person you choose see your IRS information; it does not let them represent you |
| Form 2848 | Power of Attorney and Declaration of Representative: lets an eligible representative act for you |
| Form 9465 | Installment Agreement Request |
| Form 433-F, 433-A, 433-B, 433-H | Collection information statements: your income, expenses and assets |
| Form 656 and Form 656-B | Offer in compromise application and booklet (Form 433-A (OIC) for individuals) |
| Form 843 | Claim for Refund and Request for Abatement, used for some penalty relief requests |
| Form 12153 | Request for a Collection Due Process or Equivalent Hearing |
| Form 12277 | Application for withdrawal of a filed Notice of Federal Tax Lien |
| Form 8857 | Request for Innocent Spouse Relief |
| Form 1040-X | Amended U.S. Individual Income Tax Return |
| Form 4506-T | Request for transcript of tax return, including wage and income information |
| Form 13844 | Application for reduced user fee for installment agreements |
You don't need everything on day one. If records are missing, the IRS transcript fills many gaps.
You don't always need to pay anyone to fix an IRS problem, and we tell people that. The Taxpayer Advocate Service is "an independent organization within the IRS" that helps when a problem can't be resolved through normal channels; call 1-877-777-4778 (TAS). Low Income Taxpayer Clinics help qualifying people with IRS disputes. The IRS Taxpayer Assistance Center in Las Vegas takes appointments, and the IRS lines are 800-829-1040 for individuals and 800-829-4933 for businesses (IRS, Get help with tax debt). Many simple payment plans can be set up online by yourself.
Where iQTAXX helps most is the part those resources expect you to have done already: accurate, filed returns and an organized picture of what you owe.
Related guides: IRS notice help in Las Vegas: CP2000, unfiled returns and back taxes · Amended tax return (Form 1040-X) guide · Personal tax preparation · Rideshare and gig driver taxes · Realtor tax preparation · Self-employed tax preparation · All iQTAXX tax services
IRS tax resolution means bringing an IRS problem to a settled state: all required returns filed, the balance checked, and an IRS-accepted way to handle what you owe, such as full payment, a payment plan, penalty relief, Currently Not Collectible status or an offer in compromise.
No. We are tax preparers, not CPAs, enrolled agents or attorneys, so we don't handle offers in compromise, cases with an assigned revenue officer, IRS Appeals or Tax Court. We prepare the returns those cases need and tell you up front when you need a representative who can file Form 2848.
Find the notice number and the response date, then compare the letter with your return. Don't ignore it. If the letter looks suspicious or you can't find it on irs.gov, call the IRS at 800-829-1040 before paying anything. Then call iQTAXX at 702-871-7884.
Generally 10 years from the date the tax was assessed, according to IRS Publication 594. Some events, such as a Collection Due Process hearing or a pending offer in compromise, suspend or extend that period.
A lien is the government's legal claim against your property and is filed as a public notice. A levy is the actual seizure of property, such as wages, a bank account or a state tax refund. The IRS usually must send a final notice of intent to levy at least 30 days before a levy.
No. Penalties and interest continue until the balance is paid in full. For individuals who filed on time, the failure to pay penalty drops from 0.5% to 0.25% a month during an approved payment plan.
Starting with 2025 tax year returns, the IRS does not assess failure to file, failure to pay or failure to deposit penalties if you filed and paid on time for the prior three years. You don't have to ask; the IRS sends a letter saying the relief was applied.
Yes, if your seriously delinquent tax debt is more than $66,000 for 2026, including penalties and interest. The IRS does not certify people in Currently Not Collectible status, with a pending payment plan or offer, or timely paying an approved plan.
You may qualify for innocent spouse relief, separation of liability relief or equitable relief, all requested on Form 8857. If a joint refund was taken only for your spouse's debt, injured spouse relief on Form 8379 is the separate option.
Yes. iQTAXX is open year-round, not seasonal, so you can call 702-871-7884 about an IRS letter in any month. Booking is by phone call only; we don't book by text or online.
Checked October 29, 2026: IRS, Get help with tax debt; IRS, Payment plans; IRS, Offer in compromise; IRS, Temporarily delay the collection process; IRS, First Time Abate and AEP; IRS, Reasonable cause; IRS, Failure to file penalty; IRS, Failure to pay penalty; IRS, Quarterly interest rates; IRS, Federal tax lien; IRS, Levy; IRS, CDP FAQs; IRS Publication 594; IRS, Passports; IRS, Innocent spouse relief; IRS, Filing past due returns; IRS, IRM 1.2.1; IRS, Annual Filing Season Program; Taxpayer Advocate Service.
