Frequently Asked Questions

 

How does an IRS installment agreement work?

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An installment agreement lets you pay your tax debt in monthly payments instead of paying the full balance at once. The IRS offers different types of agreements, and the right option depends on your balance, income, assets, expenses, and filing history.

 

At ​Selig & Associates, we look beyond the amount owed. Before proposing a payment plan, we review your broader financial picture, including cash flow, debt-to-income ratio, credit lines, loan covenants, and other obligations that could affect both your immediate needs and long-term goals. We then work to negotiate an affordable agreement and present the IRS or New York State with a reasonable, sustainable alternative to enforced collection.

 

Can the IRS remove penalties and interest?

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The IRS may remove certain penalties if you qualify. Possible options include first-time penalty abatement for taxpayers with a qualifying compliance history, and reasonable-cause relief when circumstances such as serious illness or a natural disaster prevented timely filing or payment. Interest generally cannot be removed on its own, though it may be reduced if the related penalty is abated. Eligibility depends on your facts and tax history.

 

At ​Selig & Associates, we conduct a thorough review of your tax transcripts and compliance history to uncover every available avenue for penalty relief. By aggressively pursuing penalty reductions, we help lower your overall liability and structure more manageable, affordable payment solutions.

 

Do you handle Offers in Compromise?

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We rarely accept Offer in Compromise (OIC) cases. Our practice primarily focuses on installment agreements, penalty abatements, and legal-compliance matters, especially for clients with substantial tax debt and high balances.

 

Rather than pursuing OICs that the IRS frequently rejects for high-earners or asset-holders, Selig & Associates focuses on finding practical, real-world solutions. We excel at negotiating structured, affordable installment agreements and penalty reductions that protect your assets and fit your actual financial capacity.

 

What if I haven’t filed all my tax returns?

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The IRS generally requires you to file all required returns before approving an installment agreement or other tax relief. Filing a late return is almost always better than leaving it unfiled, as unfiled returns prevent you from entering into a formal resolution.

 

​Selig & Associates helps you systematically address outstanding tax returns to bring you back into full compliance. Once your filings are up to date, we evaluate your complete financial profile and negotiate an affordable, strategic agreement to resolve your remaining tax balance.

 

What is the minimum tax balance you handle?

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We typically work with clients who owe $100,000 or more. If your balance is lower, we are happy to point you toward other helpful resources.

 

Because ​Selig & Associates specializes in large-dollar tax debt, we understand the complex financial pressures facing high-balance taxpayers. We focus on finding tailored solutions and negotiating affordable agreements that protect your livelihood, credit, and business operations.

 

Could the IRS levy my bank account or wages while we negotiate?

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Collection activity may sometimes be paused or limited while a resolution is being considered, but this depends on your circumstances and is never guaranteed. If you’ve received a final notice or a levy warning, it is critical to act promptly.

 

Once authorized to represent you, ​Selig & Associates immediately contacts the IRS to address your collection situation. We step in to communicate with tax authorities on your behalf, working quickly to halt aggressive enforcement and negotiate a reasonable, affordable path forward.

 

What’s the difference between an installment agreement and Currently Not Collectible status?

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An installment agreement is a structured plan to pay your tax debt over time. Currently Not Collectible (CNC) status is a temporary pause in collection that may be available when paying would create serious financial hardship. Under CNC status, the debt does not disappear, and interest generally continues to accrue. 

 

At ​Selig & Associates, we carefully analyze your finances to assess which option is most appropriate for your situation. Whether we are securing a temporary hardship pause or negotiating a long-term, affordable installment agreement, our goal is to find a solution that protects your financial stability.

 

Do you handle New York State tax problems?

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Yes. ​Selig & Associates represents clients before both the IRS and the New York State Department of Taxation and Finance. Our practice focuses on strategic, discreet tax resolution and negotiation, not prolonged litigation.

 

Whether you are facing federal or state collection actions, ​Selig & Associates is dedicated to finding effective solutions. We negotiate directly with New York State and IRS authorities to secure affordable payment agreements and resolve complex compliance issues discreetly.

 

Can the government really suspend or revoke my passport for unpaid taxes?

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Yes. When people say their passport is “suspended” for unpaid taxes, the legal terms are denial, revocation, or limitation of a passport. By law, the Department of State cannot issue or renew a U.S. passport if the IRS certifies that a taxpayer has "seriously delinquent tax debt," and it may also revoke a valid passport you already hold.

 

If your ability to travel is at risk, ​Selig & Associates can step in to help. We work directly with the IRS to resolve the underlying tax certification, focusing on practical solutions and negotiating affordable agreements that restore your passport privileges. 

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