If you owe back taxes to the IRS or state, you need straight answers and a realistic plan. Yarborough & Potter helps individuals and businesses in the Charlotte area resolve tax debt, stop collection activity, and regain control of their financial situation.
Falling behind on taxes happens more often than most people realize. A bad year, a miscalculation, a missed filing, an unexpected liability. The reasons vary, but the result is the same: you owe money to the IRS or state, the balance keeps growing, and the notices keep coming.
The biggest mistake most people make is waiting. Every month that passes adds penalties and interest to what you owe. What started as a manageable balance can grow into something much harder to deal with, and once the IRS moves into active collection, your options start to narrow.
The good news is that tax debt can be resolved. The IRS and state agencies have formal programs designed to help taxpayers get back on track, and in many cases, the outcome is better than people expect. But navigating those programs on your own is difficult. The rules are specific, the paperwork is detailed, and the IRS is not in the business of telling you which option works best in your favor.
That’s where professional representation matters. Yarborough & Potter’s leadership includes a former IRS Revenue Officer who spent years on the other side of the collection process. That firsthand experience shapes everything about how we approach tax debt resolution, from evaluating your options to negotiating directly with the IRS or state on your behalf.
Understanding what the IRS can do is important, not to scare you, but so you can make an informed decision about when and how to respond. When a tax debt goes unresolved, the collection process follows a predictable path, and it escalates over time.
It typically starts with notices. The IRS sends a series of letters requesting payment, each one more urgent than the last. If those go unanswered, the agency can move to enforced collection actions, including:
State agencies like the North Carolina Department of Revenue and the South Carolina Department of Revenue follow similar processes and can pursue their own liens and garnishments independently.
None of this is inevitable. At almost every stage, there are steps you can take to slow or stop the collection process and move toward a resolution. But the further things progress, the fewer options you have and the harder they are to negotiate. Acting early gives you the most flexibility.
There is no single solution that works for every situation. The right path depends on how much you owe, your income and expenses, your assets, your filing history, and whether the debt is with the IRS, state, or both. Here are the most common resolution strategies we work with.
If you can’t pay your balance in full, the IRS offers payment plans that allow you to pay over time. The terms depend on the amount owed and your financial situation. We help clients determine the right type of installment agreement, prepare the application, and negotiate terms that are realistic and sustainable.
An offer in compromise allows you to settle your tax debt for less than the full amount owed. The IRS accepts these when they determine that the offer represents the most they can reasonably expect to collect. Qualification depends on your income, expenses, assets, and future earning potential. These are not easy to get approved, and the application process is detailed. We evaluate whether you’re a realistic candidate before recommending this path.
If your financial situation is such that you genuinely cannot afford to pay, the IRS may place your account in “currently not collectible” status. This pauses collection activity, including levies and garnishments, while your situation stabilizes. The debt doesn’t go away, but it buys you time and breathing room. We help clients document their financial hardship and request this status when it’s appropriate.
Penalties often make up a significant portion of what you owe. In many cases, the IRS will reduce or remove penalties if you can show reasonable cause for why the tax wasn’t paid on time. First-time penalty abatement is also available for taxpayers with a clean compliance history. We review your account to identify where penalty relief may apply and handle the request on your behalf.
If the IRS has already taken collection action, we can work to get levies released and liens resolved as part of the broader resolution process. In some situations, we can get these actions stopped quickly while a longer-term solution is put in place.
We also work with the North Carolina Department of Revenue and the South Carolina Department of Revenue to resolve state-level tax debt. State agencies have their own programs and processes, and we represent clients through those separately or in coordination with federal resolution.
If you’ve received multiple notices, if the balance is more than you can pay in full, or if the IRS has begun collection actions like liens or levies, professional help is worth considering. Even if you’re not sure where you stand, a consultation can give you clarity.
Yes. The IRS has formal programs for taxpayers who can’t pay in full. They would rather collect something through an agreement than spend resources chasing a debt they may never fully recover. The key is presenting your case correctly and through the right channels.
An offer in compromise lets you settle your debt for less than you owe. The IRS evaluates your income, expenses, assets, and ability to pay over time. It’s not available to everyone, and the approval process is rigorous. We assess your eligibility before recommending this route so you don’t waste time on an application that won’t be accepted.
In many cases, yes. We can request a levy release by showing that a resolution is in progress or by demonstrating financial hardship. The sooner you reach out, the faster we can act.
The IRS typically requires that all returns be filed before they’ll agree to most resolution programs. If you’re behind on filings, we can prepare the outstanding returns as part of the resolution process. Many of our tax debt clients also need help catching up on delinquent returns.
It depends on the complexity of your case and which program you’re pursuing. Simple installment agreements can be set up in a matter of weeks. Offers in compromise can take several months to process. We’ll give you a realistic timeline once we understand your situation.
Fees depend on the scope of work involved. We’ll discuss costs during your initial consultation so there are no surprises. Unlike some resolution firms that charge large upfront fees before evaluating your case, we make sure you understand your options and what’s involved before you commit.
Yes. We work with the North Carolina Department of Revenue and the South Carolina Department of Revenue in addition to the IRS. Many of our clients owe at both the federal and state level, and we can coordinate resolution across all agencies.
It’s almost never too late to take action. The longer you wait, the more penalties and interest accumulate, and the further the collection process can advance. But even in situations that have been unaddressed for years, there are usually still options. The first step is understanding where things stand today.
Tax debt doesn’t get better on its own. But with the right guidance, it can be resolved. If you owe back taxes and you’re not sure what to do next, a conversation with our team is the best place to start. We’ll review your situation, explain your options honestly, and help you decide on a path forward.
The consultation is free. No pressure. No empty promises. Just a clear look at what you’re dealing with and how we can help.
Yarborough & Potter Inc. is eager to answer your queries about our tax services. You can begin your relationship with us today by contacting us using the form below.
© Yarborough & Potter Inc. – Privacy Policy
License Numbers: 00076873-EA, 00091003-EA
