Our Process
How We Resolve Your IRS Tax Problem — From Start to Finish
Most tax resolution companies keep their process vague. We don't. Here's exactly what happens from the moment you contact us to the moment your tax problem is resolved — every step, every timeline, every decision point.
Start Your Resolution
Free consultation — learn your options with no obligation.
Phase 1
Discovery & Transcript Analysis
We pull your IRS wage and account transcripts — the same documents the IRS uses to assess your liability. We map every assessment, every penalty, every CSED date, and every compliance gap. This is the single most important step: you cannot resolve a tax problem you don't fully understand.
IRS account & wage transcript pull and analysis
CSED calculation for every tax period
Penalty audit — identifying all penalties eligible for abatement
Compliance gap analysis — unfiled returns, estimated tax shortfalls
Phase 2
Financial Analysis & RCP Calculation
We gather your income, expense, and asset documentation and calculate your Reasonable Collection Potential using IRS Collection Financial Standards. This single number determines your eligibility for every resolution option.
Income analysis across all household earners
IRS allowable expense calculation (housing, vehicle, food, etc.)
Asset equity analysis (real estate, vehicles, accounts, business)
RCP calculation — the number that determines OIC, CNC, or IA
Phase 3
Resolution Strategy Development
Based on your RCP and compliance status, we identify which resolution path gives you the best outcome. OIC if your RCP is low. IA if you can pay. CNC if you can't pay anything. Strategic combination if multiple tax periods call for different approaches.
Compare OIC vs. IA vs. CNC vs. CSED wait outcomes
Penalty abatement analysis — FTA, reasonable cause, statutory
Develop recommended strategy with projected outcomes
Present strategy: you make the final decision based on real numbers
Phase 4
IRS Filing & Active Representation
We prepare and file every form, negotiate with the IRS on your behalf, and manage all communication. You never speak to the IRS directly — we handle everything.
Complete form preparation (656, 433-A, 433-F, 12153, etc.)
IRS submission with complete supporting documentation
Revenue officer / ACS unit communication management
Negotiation, counter-offer response, and appeal management
Phase 5
Resolution & Ongoing Monitoring
Resolution achieved? We monitor your compliance and CSED dates. For OIC, we guide you through the 5-year compliance period. For CNC, we track annual IRS reviews. For IA, we ensure payments stay on track.
Resolution confirmation and compliance calendar
CSED tracking and alerting
Annual financial review and IRS correspondence monitoring
Post-resolution support — we're here as long as the compliance period lasts
How Long Does the Process Take?
Timelines vary by case complexity and the IRS's processing speed. Here's what to expect for each phase — and what can slow things down.
Phase
Phase 1: Discovery
Typical Timeline
1–2 weeks
Speed Factors
Fast: Documents easily accessible, all returns filed
Slow: IRS transcript delays, missing wage docs, amended return history
Phase
Phase 2: Financial Analysis
Typical Timeline
1–2 weeks
Speed Factors
Fast: Clean financial records, straightforward income/assets
Slow: Self-employment income, multiple properties, business assets to value
Phase
Phase 3: Strategy
Typical Timeline
3–5 business days
Speed Factors
Fast: Clear eligibility for one program, straightforward recommendation
Slow: Mixed-period scenarios, straddling multiple programs, borderline RCP
Phase
Phase 4: IRS Filing
Typical Timeline
2–8 months
Speed Factors
Fast: Streamlined IA, simple penalty abatement (1–3 months)
Slow: Full OIC review, appeals, Revenue Officer negotiations (6–12+ months)
Phase
Phase 5: Monitoring
Typical Timeline
Ongoing (5 yrs for OIC)
Speed Factors
Fast: Clean compliance, no new IRS notices
Slow: New tax issues, missed filings, IRS annual CNC reviews
The #1 Timeline Killer
Missing documentation is what drags resolution out the longest. The IRS will not process an OIC, CNC request, or non-streamlined IA without complete financial disclosure. Coming to your initial consultation with pay stubs, bank statements, tax returns, and asset documentation cuts weeks off the discovery phase. Review the IRS forms you'll need before your consultation.
Mistakes That Derail Resolution
These are the most common errors we see — from taxpayers who tried to handle things themselves and from firms that rush through the process.
Discovery Phase
Not pulling all tax periods
Impact: A client negotiates an IA for 2020–2021 but has unfiled returns for 2018–2019. The IRS rejects the agreement and starts collections on the older periods. Always request complete transcripts — every period, every type.
Fix: Request both Account and Wage & Income transcripts for all open years. Cross-reference against your own records.
Financial Analysis
Overstating allowable expenses
Impact: Claiming above-IRS-standard expenses without documentation triggers an automatic rejection. The IRS Collection Financial Standards set specific caps for housing, vehicle, and food — exceed them and your RCP calculation is invalid.
Fix: Use IRS Publication 1854 and the Collection Financial Standards tables. Document every expense category with actual bills and bank statements.
Strategy Phase
Picking the wrong program for the situation
Impact: A taxpayer with strong OIC eligibility instead files for an IA because it's 'easier.' They end up paying the full balance over 72 months when they could have settled for 20% through an OIC. This mistake costs tens of thousands.
Fix: Always calculate your RCP before deciding. If RCP {'<'} total debt, explore OIC. If RCP ≈ total debt, IA may be the right choice. If RCP ≈ $0, CNC is your path.
IRS Filing Phase
Incomplete or unsigned forms
Impact: The IRS returns incomplete OIC packets without processing, resetting your place in the queue and adding 3–4 months. Form 656 must be signed under penalty of perjury — a missing signature invalidates everything.
Fix: Use the OIC Pre-Qualifier tool on IRS.gov. Have a second professional review the packet before submission. Track every form with certified mail.
Negotiation Phase
Accepting the IRS's first counter-offer
Impact: The IRS often counter-offers on OICs at a higher amount than necessary. Accepting the first counter without analysis leaves money on the table. We've seen IRS counter-offers come down 40–60% through proper negotiation.
Fix: Analyze the IRS's RCP calculation line by line. Challenge overstated asset values and understated expenses with documentation. Request a manager conference if the examiner's position is unreasonable.
Post-Resolution
Missing a future tax filing or payment
Impact: The OIC 5-year compliance period is unforgiving: one missed filing or one new balance due, and the IRS reinstates the original debt in full — with all accumulated penalties and interest. This is the most expensive single mistake in tax resolution.
Fix: Set calendar reminders for every filing deadline. File even if you can't pay — the failure-to-file penalty is 10x higher than failure-to-pay. Consider estimated tax payments to avoid new balances.
IRS Forms You'll Encounter
Depending on your resolution path, you'll see some or all of these forms. We prepare them, but knowing what they are reduces anxiety.
Form 8821
Tax Information Authorization
Allows us to pull your IRS transcripts. Filed immediately in Phase 1. Without it, we can't see what the IRS sees.
1–3 days processing
Form 2848
Power of Attorney
Authorizes us to represent you before the IRS — negotiate, receive correspondence, and make binding decisions on your behalf.
1–3 days processing
Form 433-A
Collection Information Statement (Individual)
The core financial disclosure for OICs, CNC, and non-streamlined IAs. Reports income, expenses, assets, liabilities.
1–2 weeks to complete
Form 433-F
Collection Information Statement (Simplified)
Shorter financial disclosure for smaller cases. Lower documentation burden but same IRS scrutiny on submitted numbers.
3–5 days to complete
Form 656
Offer in Compromise
The actual OIC application. Must include complete 433-A, supporting docs, and $205 application fee (waived for low-income).
IRS review: 6–12 months
Form 9465
Installment Agreement Request
Requests a monthly payment plan. Streamlined processing for balances under $50K with direct debit setup.
IRS review: 1–3 months
Form 843
Claim for Refund & Abatement
Requests penalty abatement — FTA, reasonable cause, or statutory exceptions. Requires written explanation and documentation.
IRS review: 3–9 months
Form 12153
CDP Hearing Request
Requests a Collection Due Process hearing. Must be filed within 30 days of final levy notice or NFTL filing to stop collections.
Must file within 30 days
Process FAQs
Common questions about how tax resolution works and what to expect.
Do I have to talk to the IRS myself?
No. Once you sign Form 2848 (Power of Attorney), we handle all IRS communication on your behalf. The IRS is legally required to contact us, not you, for anything related to your case. The only exception: if you receive a new notice for a tax period not covered by the POA, forward it to us immediately.
What if I have unfiled tax returns from past years?
You must file all required returns before the IRS will approve any resolution program. This is non-negotiable — the IRS requires full compliance. Phase 1 (Discovery) identifies which years are missing. We can help prepare and file those returns as part of the resolution process. Most taxpayers with unfiled returns owe less than they fear once returns are properly prepared.
Can the IRS levy my bank account while we're working on a resolution?
It depends on where you are in the process. If you've received a Final Notice of Intent to Levy (LT11 or CP504), the IRS can levy at any time. Filing an OIC stops levies immediately. Filing a CDP hearing request (Form 12153) within 30 days of the final notice stops levies. An IA request alone does NOT stop levies — you must specifically request a collection hold. If a levy is active when you contact us, we prioritize stopping it.
How do I know if my tax professional is actually doing the work?
You should receive: (1) a copy of every form filed on your behalf, (2) regular status updates, (3) copies of all IRS correspondence, (4) a clear resolution strategy document that explains the recommendation and why. If you're not getting these things, the firm may be collecting fees without doing substantive work. At New Beginning Tax Solutions, we provide every client with a secure portal showing real-time case status.
What happens if the IRS rejects our resolution proposal?
Rejection is not the end — it's the start of the next phase. Options include: (1) appeal the rejection through IRS Appeals (independent from the examiner), (2) submit additional documentation addressing the IRS's specific objections, (3) shift to an alternative resolution path (e.g., if OIC is rejected, evaluate IA or CNC), (4) request a Collection Due Process hearing. About 40% of initially rejected OICs are ultimately approved on appeal.
How much of the process depends on which IRS office handles my case?
Significantly. Different IRS campuses and Revenue Officers have different processing speeds, workloads, and tendencies. ACS (Automated Collection System) units handle smaller-balance cases and process faster. Revenue Officers handle larger cases with more scrutiny. Knowing which unit handles your case — and how to work with them — is part of professional representation. We track processing times by campus and adjust strategy accordingly.
Ready to Start the Process?
The sooner you begin, the more options you have. Every day of delay adds penalties and interest to your balance and narrows your resolution paths. Your free consultation takes 30 minutes — and gives you a clear roadmap forward.