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    TAX RESOLUTION

    Behind on Taxes?

    You Have More Options Than You Think.

    Falling behind on taxes happens to good people for legitimate reasons — job loss, divorce, illness, or simply life getting in the way. What matters now is not how you got here. What matters is how we get you out.

    We help Washington State taxpayers resolve back taxes and IRS balance situations with a clear plan and zero judgment.

    Virtual statewide. In person at our Bothell office.

    Call +1 (425) 699-6990

    WHAT WE RESOLVE

    Situations We Handle Every Day

    Most back tax situations have more options than people realize. The sooner you start the more options you have.

    Unfiled Returns

    One year or many years of unfiled returns — we get you back into compliance.

    Cannot Pay Tax Balance

    Filed your return but cannot pay what you owe — options exist including payment plans and settlements.

    IRS Balance Due Notice

    Received a balance due notice and not sure what to do next — we review it and respond on your behalf.

    Amended Returns

    Prior year returns that need to be corrected or updated — we prepare and file Form 1040-X.

    IRS Levy or Lien

    IRS has filed a lien or issued a levy against your assets — we work to release or reduce it.

    Large Unexpected Tax Bill

    Filed your return and received a bill you cannot afford — we assess all resolution options available to you. If your letter is an audit or exam notice instead, see IRS audit representation.

    COLLECTION NOTICES

    Balance-Due Notices — What They Mean

    Collection notices escalate. Here is where each one falls.

    CP14

    Pay or respond

    The first notice that you have a balance due on a filed return.

    CP503

    Act now

    A reminder that the balance is still unpaid. The IRS is escalating collection activity — a payment plan or response is needed.

    CP504

    Urgent

    Notice of intent to levy. The IRS can levy your state tax refund and move toward levying other property.

    Letter 1058 / LT11

    Immediate action required

    Final notice of intent to levy and your right to a Collection Due Process hearing. The hearing request deadline is in the letter — do not miss it.

    YOUR OPTIONS

    Tax Relief Options Available to You

    There is almost always a path forward. These are the most common resolution options.

    Installment Agreement

    Cannot pay in full? The IRS offers monthly payment plans that let you pay your balance over time. We set it up correctly from the start.

    Offer in Compromise

    Qualify to settle your tax debt for less than the full amount owed, based on your ability to pay, income, expenses, and asset equity. Not everyone qualifies — we evaluate eligibility before recommending it.

    Penalty Abatement

    The failure-to-file penalty is 5% of the unpaid tax per month up to 25%, and the failure-to-pay penalty is 0.5% per month up to 25%. First-time abatement and reasonable cause arguments can remove or reduce them.

    Currently Not Collectible Status

    If paying your tax debt would cause genuine financial hardship, the IRS can temporarily suspend collection activity, giving you time to stabilize your situation.

    UNFILED RETURNS

    Have Unfiled Tax Returns?

    Here is what you need to know before you do anything.

    Voluntary Filing Is Always Better

    The IRS treats taxpayers who come forward voluntarily more favorably than those who wait for enforcement action to begin.

    The IRS May Have Already Filed For You

    If you have unfiled returns the IRS may have prepared a Substitute for Return on your behalf — usually without the deductions you are entitled to. Filing your own return replaces it.

    You May Still Get a Refund

    Many people with unfiled returns are owed refunds — but a refund must generally be claimed within 3 years of the return's due date, so filing sooner matters.

    We Can Reconstruct Missing Records

    Wage and income information reported to the IRS can be pulled from your IRS transcript. You do not need perfect records to get back into compliance.

    WASHINGTON

    Back Taxes in Washington

    Most back-tax cases in Washington are federal, because the state has no income tax on wages. (A new 9.9% tax on household income above $1 million takes effect in 2028 and faces legal challenges, but it won't affect most households.) But business owners can also fall behind on Washington excise taxes. The Department of Revenue adds a 9% penalty when tax is not paid by the due date, rising to 19% and then 29% the longer it stays unpaid, plus interest — so a missed B&O or sales tax return grows quickly.

    Payroll taxes are a special risk. Federal income tax and the employee share of Social Security and Medicare withheld from paychecks are trust fund taxes, and the Trust Fund Recovery Penalty can make responsible owners personally liable for them. If payroll deposits have slipped, act before the IRS does — and consider payroll services going forward.

    Back-tax problems often start when the books fall behind. Catch-up bookkeeping rebuilds the records we need to file accurate returns. Owner-operators in trucking and general contractors are especially likely to have unfiled years because estimated payments were never set up.

    We work with clients in person through our Bothell tax preparation office and virtually statewide, including Tacoma. For background, read what happens if you don't keep good financial records and estimated quarterly taxes explained.

    How We Resolve Your Back Tax Situation

    1. 01

      Free review — we assess your full situation and all options available to you

    2. 02

      IRS transcript — we pull your IRS transcripts to understand exactly what the IRS has on file

    3. 03

      Strategy — we present a clear plan with your options and recommended approach

    4. 04

      Resolution — we handle all IRS communication directly on your behalf

    5. 05

      Fresh start — you are back in compliance with a clear path forward

    PRICING

    What It Costs

    Every case is different, so resolution work is quoted after we review your transcripts and notices. The consultation is free.

    See all pricing →
    Back Tax ResolutionQuoted after free consultation
    Unfiled Return PreparationQuoted after free consultation

    We never start work without agreeing on price first.

    Common Questions

    The IRS generally requires the last six years of unfiled returns to be filed to achieve compliance. This policy exists to give taxpayers a manageable path back to good standing without having to reconstruct decades of records. However, older unfiled years may still need to be addressed if there is a significant balance due or if the IRS has already filed substitute returns for those years. At PBX Tax, we review your complete IRS transcript and prioritize which years to file first based on your specific situation.

    Criminal prosecution for tax non-filing is extremely rare and generally reserved for cases involving deliberate fraud or evasion with large dollar amounts. The vast majority of non-filing situations are civil matters that are resolved through filing the missing returns and setting up payment arrangements. Voluntarily coming forward to file back returns is treated completely differently by the IRS than cases where enforcement action was required. If you have unfiled returns, the best thing you can do is take action now — we can help.

    Owing taxes and being unable to pay are two completely separate problems. The filing obligation exists regardless of your ability to pay — and the penalties for not filing are significantly worse than the penalties for filing but not paying. Payment options including installment agreements, currently not collectible status, and offer in compromise exist specifically for taxpayers who cannot pay in full. We evaluate your financial situation and recommend the option that provides the most relief while keeping you in compliance with the IRS.

    The IRS generally has ten years from the date of assessment to collect a tax debt under the Collection Statute Expiration Date (CSED). After that period, the debt expires and is no longer legally enforceable. However, certain actions — including filing for bankruptcy, submitting an offer in compromise, or signing certain agreements — can pause this clock and extend the collection period. Understanding where you stand relative to the collection statute is an important part of evaluating the best resolution strategy for your specific situation.

    Often, yes. Requesting a Collection Due Process hearing by the deadline in a final notice of intent to levy generally stops levy action while the case is reviewed. An installment agreement or currently not collectible status can resolve the balance and prevent future levies. Contact us as soon as the notice arrives.

    Resolution work is quoted after a free consultation, once we have reviewed your IRS transcripts and notices.

    RELATED SERVICES

    DO NOT WAIT

    The Longer You Wait, the Fewer Options You Have

    Every day of inaction adds penalties and interest and reduces your resolution options. The consultation is free.

    Call +1 (425) 699-6990

    Last updated September 2026