Key Insights
- The IRS doesn't negotiate informally — every resolution program requires specific forms and documentation.
- Power of Attorney (Form 2848) redirects all IRS contact to your representative — you stop dealing with them directly.
- Compliance first: all missing returns must be filed before any resolution program can be approved.
- Collection activity (levies, garnishments) is suspended while an OIC is under review — giving time to work the case.
The Tax Relief Process: Step by Step
Phase 1: Initial Assessment
Day 1–7- ✓Free consultation to understand your situation: balance, filing status, income, and enforcement status
- ✓TaxWave orders your IRS transcripts (IMFOLI, TXMODA, Wage & Income) to verify the full picture
- ✓We identify all open tax years, existing assessments, liens, and pending enforcement
- ✓We give you an honest assessment of which programs you qualify for and what the realistic outcome range is
Phase 2: Engagement & Power of Attorney
Day 7–14- ✓You sign an engagement agreement and Form 2848 (Power of Attorney)
- ✓TaxWave files the 2848 with the IRS — all future IRS contact goes to us
- ✓If there's active enforcement (levy, garnishment), TaxWave contacts the IRS immediately to establish representation and request enforcement holds
- ✓We communicate the general strategy and expected timeline
Phase 3: Compliance & Documentation
Week 2–6- ✓File any missing tax returns — this is required before any resolution program can be submitted
- ✓Prepare Collection Information Statement (Form 433-A or 433-F) documenting your income, expenses, and assets
- ✓Gather supporting documentation: pay stubs, bank statements, lease agreements, medical bills, vehicle payoffs
- ✓Ensure current-year tax obligations are being met (estimated payments or withholding)
Phase 4: Strategy Selection & Submission
Week 4–8- ✓Submit the appropriate resolution application: Form 656 (OIC), Form 9465 (installment agreement), Form 843 (penalty abatement), or CNC request
- ✓For OICs: TaxWave calculates your Reasonable Collection Potential and submits the offer with full documentation
- ✓For installment agreements: negotiate the monthly payment and direct debit setup
- ✓For CNC: submit the financial hardship documentation and get formal designation
Phase 5: IRS Review & Negotiation
Weeks 8–52 (program dependent)- ✓The IRS reviews your application — TaxWave responds to any IRS questions or additional information requests within the deadlines
- ✓For OICs: the IRS may counter with a higher offer amount; TaxWave evaluates the counter and advises on acceptance or continued negotiation
- ✓For appeals: if the initial decision is unfavorable, TaxWave files Appeals within the 30-day window
- ✓Collection remains suspended during OIC review
Phase 6: Resolution & Ongoing Compliance
After approval- ✓IRS issues acceptance letter — the case is resolved
- ✓For OICs: payment is made as agreed; once received, the IRS releases all related liens
- ✓TaxWave advises on post-resolution compliance requirements (typically 5 years of on-time filing and payment for OIC clients)
- ✓Lien withdrawal requests filed if applicable — restoring public records and credit profile
Frequently Asked Questions
It varies by program. First-Time Abatement by phone: 1 day. Currently Not Collectible status: 2–6 weeks. Installment Agreement (streamlined): 30–45 days. Offer in Compromise: 6–24 months (typically 9–12 months). Innocent Spouse Relief: 6–12 months. Complex cases involving multiple unfiled years + an OIC can take 12–18 months from start to resolution. TaxWave gives you a specific timeline estimate after the initial case review.
A legitimate tax resolution firm: (1) obtains your IRS transcripts and identifies the full scope of the problem; (2) gets a Power of Attorney on file so the IRS communicates directly with the firm, not you; (3) determines eligibility for all available programs; (4) prepares and files all required documentation (Collection Information Statements, Form 8857, Form 656, etc.); (5) negotiates directly with the IRS and appeals unit; (6) monitors compliance requirements after resolution to protect the agreement. TaxWave handles all of this — you don't need to talk to the IRS yourself at any point.
Form 2848 authorizes TaxWave (or any representative) to speak directly with the IRS on your behalf, access your account information, and negotiate on your behalf. It does not give TaxWave any ability to access your funds or accounts — it's strictly a representative authority for IRS matters. Once a 2848 is on file, IRS collectors and revenue officers contact TaxWave instead of you. This alone removes significant stress for most clients.
You have 30 days to file a formal appeal with the IRS Office of Appeals. TaxWave prepares the appeal, addressing the specific grounds for rejection. If the OIC is not a viable strategy after appeal, we pivot to the next-best option — typically a Partial Pay Installment Agreement (PPIA), which achieves a similar result over a longer time horizon. A rejected OIC is not the end of the road.
Yes. Every IRS resolution program requires that you are current on: (1) all required tax return filings — you cannot have any unfiled returns; and (2) all current-year estimated tax payments or withholding. If you're self-employed and falling behind on current-year estimates while trying to resolve past debt, the IRS will reject your application. TaxWave handles getting you current on filings as part of the overall resolution strategy.
Ready to start the process?
Phase 1 is always free. TaxWave reviews your transcripts, identifies every option, and gives you a realistic outcome assessment — before you commit to anything.
Start My Free Assessment