Rescue Tax Services

09/24/2026

What Happens When You Owe Both the IRS and Your State Tax Agency?

Owing both the IRS and your state tax agency can be confusing, especially when you are receiving separate notices and facing different deadlines. Resolving one debt does not automatically resolve the other.

If you owe both federal and state taxes, understanding your options can help you act before the problem gets worse. If after reading this blog you need further help resolving your tax debt contact Rescue Tax Services at (951) 684-4409 or visit https://rescuetaxservices.com/contact/ .

The IRS and State Tax Agencies Collect Separately
Your IRS debt and state tax debt are generally separate obligations. Making arrangements with the IRS does not automatically create an agreement with your state, and resolving a state balance does not eliminate what you owe the IRS.

That means you may need to communicate and negotiate with two different taxing authorities at the same time.

Each agency can have its own collection procedures, payment requirements, deadlines, and resolution programs. State rules also vary depending on where you live, making it important to look at your entire tax situation rather than focusing on only one balance.

What Can Happen If You Don't Address the Debt?
Ignoring tax debt can make the problem worse. The IRS may add penalties and interest and can use collection actions such as liens and levies.

State tax agencies may also pursue collection under state law. If you owe both agencies, dealing with the problem early can help you avoid facing multiple collection actions at once.

Which Tax Debt Should You Pay First?
There isn't one answer that works for every taxpayer.

You may be tempted to pay whichever agency is sending the most threatening letter, but your overall financial situation should be reviewed first. Factors that may affect your strategy include:

• How much you owe each agency

• Whether all required tax returns have been filed

• Whether either agency has begun collection action

• Your income and monthly expenses

• Your assets and available cash

• Whether you can afford monthly payments

• The type and age of the tax debt

A tax resolution professional can review both balances and help determine which issues require immediate attention.

Can You Set Up Payment Plans With Both Agencies?
Possibly. The IRS offers payment plans for eligible taxpayers who cannot pay their balance in full right away.

Many states also offer payment arrangements, but the rules and terms vary. This means you may be making payments to both agencies at the same time.

The key is making sure the combined payments are affordable. A tax resolution strategy should consider both debts before you commit to monthly payment amounts.

Could You Settle Your Tax Debt for Less?
In some situations, taxpayers may qualify for programs that reduce the amount they ultimately have to pay.

For federal tax debt, the IRS's Offer in Compromise program allows qualifying taxpayers to settle a tax liability for less than the full amount owed. The IRS considers factors such as ability to pay, income, expenses, and asset equity when evaluating an offer. It also makes clear that the program is not appropriate for everyone.

Some states have their own settlement or hardship programs, but the rules vary significantly.

Qualifying for relief with one agency does not necessarily mean you will receive the same result from the other.

Don't Forget About Unfiled Tax Returns
Before many tax resolution options are available, you may need to get your federal and state tax filings current. The IRS generally requires required returns to be filed before approving certain payment or settlement options.

If you have unfiled returns, determining what needs to be filed is an important first step. Filing those returns can also give you a clearer picture of how much you actually owe.

One Tax Problem Requires a Coordinated Strategy
When you owe both the IRS and your state, trying to solve each problem separately can make an already stressful situation harder.

A tax resolution professional can review your federal and state tax debts together, identify urgent collection issues, determine whether returns are missing, evaluate available resolution options, and help develop a strategy that fits your financial circumstances.

Get Help With Your IRS and State Tax Debt
Owing both the IRS and your state can be overwhelming, but you don’t have to handle it alone.

Call RESCUE TAX SERVICES today at (951) 684-4409 or visit. https://rescuetaxservices.com/contact/ .Our tax resolution team can review your situation, explain your options, and help you move toward resolving your tax debt.

Get expert tax help from Rescue Tax Services. Contact us today!

09/04/2026

How Much Will the IRS Accept
Each Month on a Payment Plan?

If you owe back taxes, one of your first questions is probably: “How much will the IRS make me pay every month?”

When IRS notices arrive, it’s natural to worry about wage garnishments, bank levies, tax liens, and whether the IRS will demand more than you can afford.
The good news is the IRS often allows taxpayers to pay over time through a monthly payment plan, also called an installment agreement.

But the IRS does not simply accept any payment amount you offer.
What the IRS will accept depends on how much you owe, your income, expenses, assets, whether all tax returns are filed, and how much time the IRS has left to collect.

At RESCUE TAX SERVICES we help taxpayers facing IRS tax debt. If you still have questions after reading this blog, or need help resolving your tax issue, call us at (951) 684-4409 or visit https://rescuetaxservices.com/contact/.

There Is No Automatic “Affordable” IRS Payment
Many taxpayers assume they can call the IRS, offer $100 or $200 per month, and get approved.

Sometimes that may work, especially for smaller balances. But if you owe a larger amount, have multiple years of tax debt, own assets, or have unfiled tax returns, the IRS may take a much closer look at your finances.

In some cases, the IRS will want to know whether you can pay the balance in full, borrow against assets, sell property, or make a larger monthly payment than you originally offered.

That’s why guessing at a payment amount can be risky. The real question is not simply, “What will the IRS accept?” The better question is:
“What payment plan can I qualify for that protects me from IRS collection action and still fits my financial situation?”

The IRS May Look at Your Ability to Pay
If you don’t qualify for a simple payment plan, the IRS may require financial information. This can include your income, bank accounts, property, vehicles, business assets, and monthly living expenses.

But here’s the catch: the IRS may not allow all of your actual expenses.
You may have rent, car payments, credit cards, medical bills, insurance, and other obligations. But the IRS has its own standards for what it considers necessary living expenses. That means they may believe you can afford to pay more than you feel you can.

This is where many taxpayers make a costly mistake. They call the IRS themselves, answer financial questions without understanding the consequences, and accidentally give the IRS information that hurts their case.

What If You Can’t Afford What the IRS Wants?
If the IRS is asking for more than you can afford, you may still have options.
Depending on your situation, you may qualify for a lower monthly payment, a partial payment installment agreement, currently not collectible status, penalty relief, or even an Offer in Compromise.

A payment plan is not always the best solution. Sometimes it is simply the fastest solution the IRS offers.

But fastest does not always mean best.

For example, if the IRS has limited time left to collect, or if your financial situation shows you cannot pay the full balance, a different strategy may save you thousands of dollars.

Don’t Set Up the Wrong Payment Plan
One of the biggest mistakes taxpayers make is setting up a payment plan just to stop the pressure.

That may feel like a relief at first, but the wrong payment plan can create bigger problems later. You could agree to a payment you cannot afford, default on the agreement, and end up right back in IRS collections.

Before you agree to any monthly payment, you should know:
• Are all your tax returns filed?
• How much do you actually owe?
• Can penalties be reduced?
• Is the IRS asking for more than required?
• Do you qualify for a lower payment?
• Is a payment plan even the best option?
• These questions matter because the wrong decision can cost you money, time, and peace of mind.

Get the Right IRS Payment Plan for Your Situation
The IRS may accept monthly payments, but the amount depends on your specific facts. There is no one-size-fits-all answer.

The right strategy can help protect your paycheck, your bank account, your property, and your future. The wrong strategy can keep you trapped in tax debt for years.

If you owe the IRS and are unsure what they will accept each month, don’t guess and don’t go it alone.

Call RESCUE TAX SERVICES at (951) 684-4409 or visit https://rescuetaxservices.com/contact/ today for a FREE, no-obligation consultation. We’ll review your IRS situation, explain your options, and help you determine the best path to resolve your tax debt.

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07/11/2026

Behind on Taxes as a Freelancer?

Here’s Exactly What the IRS Can Do Next
And How to Stop It

If you’re a freelancer, consultant, or independent contractor who’s fallen behind on taxes you’re not alone. Many self-employed individuals miss estimated payments, fall behind on filings, or end up owing more than they can afford. Without taxes being withheld, it’s easy for things to slip, especially when cash flow gets tight.

But here’s the reality: The IRS doesn’t forget, and ignoring the problem only makes it more expensive and more stressful.

At Rescue Tax Services we have experience helping freelancers who find themselves facing IRS tax debt. If after reading this blog you still have questions or need help resolving your tax issue, call us at (951) 684-4409 or visit https://rescuetaxservices.com/contact/ .

Now let’s look at what happens next and how to stop it before it escalates.

What the IRS Does When You Fall Behind
The IRS follows a progression, it won’t get aggressive right away, but it will if nothing is done.

It usually starts with a simple notice showing a balance due. Ignore it, and the letters become more urgent, a CP504 (intent to levy) and eventually a Final Notice of Intent to Levy (LT11 or Letter 1058). At that point, the IRS is preparing to take action.

Meanwhile, your balance keeps growing. Penalties and interest add up faster than most freelancers expect:

• Failure-to-file penalties can reach up to 25%

• Failure-to-pay penalties accrue monthly

• Interest compounds daily

What started as a manageable bill can quickly become overwhelming.
If the issue isn’t resolved, the IRS may file a Notice of Federal Tax Lien, which can impact your credit and ability to borrow. From there, enforcement actions can follow, without going to court including:

• Bank levies

• Garnishment of client payments

• Refund interception

If you haven’t filed returns, the IRS may also file a Substitute for Return (SFR) for you, without deductions, often resulting in a much higher tax bill than necessary.

How to Stop the IRS Before It Gets Worse
The good news is you still have options, but timing is critical. The sooner you act, the more control you have.

Start by getting compliant. File any missing returns and get current, even if you can’t pay yet. This alone puts you in a much stronger position with the IRS.

From there, your resolution depends on your financial situation. Common options include:

• Installment Agreements, which allow you to pay over time based on what you can afford

• Offer in Compromise, which may allow you to settle your debt for less than the full amount

• Currently Not Collectible, which can temporarily pause collections if you are unable to pay anything

• Penalty Abatement, which can reduce or eliminate certain penalties if you qualify

Choosing the right path isn’t always obvious, and the wrong move can cost you.

If collections have already started or are about to begin, they can often be stopped or delayed. A tax resolution professional can step in, deal directly with the IRS, and protect your assets while a solution is put in place.

The Mistake That Costs Freelancers the Most
Many freelancers try to handle IRS issues on their own. It makes sense, you’re used to being independent and figuring things out.

But tax resolution is a different kind of problem. One misstep can limit your options, increase your costs, or lock you into an agreement that doesn’t actually work for your financial reality. And the IRS isn’t there to advise you, they’re there to collect what’s owed.

Take Control Before the IRS Does
If you’re behind on taxes, the situation is likely more fixable than you think, but it won’t fix itself.

The longer you wait:

• The more your balance grows

• The more aggressive the IRS becomes

• The fewer options you may have available

Taking action now puts you back in control.

Get a Free Confidential Consultation
If you’re a freelancer dealing with IRS issues, whether it’s unfiled returns, tax debt, or collection notices, you don’t have to navigate this alone.

We specialize in helping self-employed individuals resolve their tax problems and move forward with a clear plan.

Call Rescue Tax Services at (951) 684-4409 or visit us online at https://rescuetaxservices.com/contact/ today for a FREE, no-obligation consultation. We’ll review your situation, explain your options in plain English, and help you determine the best path forward.

Don’t wait for the IRS to make the next move, make yours first.

Get expert tax help from Rescue Tax Services. Contact us today!

04/04/2026

Under the One, Big, Beautiful Bill, if you receive qualified overtime compensation, you may deduct the pay that exceeds your regular rate of pay. If you still have questions about this tax provision, the has posted details at: https://ow.ly/62CE50YsWHR

02/28/2026

Does the IRS know when you buy gold?

Not all gold purchases are reported, but some transactions can trigger dealer disclosure requirements. Here's why.

02/26/2026

IRS proposes rules on backup withholding threshold for payment companies

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02/24/2026

7 wild and crazy tax deductions that the IRS actually allowed

As the 2026 tax filing season gets underway, take note of these seven “wild and crazy” deductions that have previously been allowed.

02/21/2026

IRS issues ‘essential tips’ for millions for tax filing season

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02/18/2026

IRS finalizes 2026 Form W-2

The final version of the 2026 federal wage and tax statement was released Jan. 9 by the Internal Revenue Service.

02/16/2026

IRS updates retirement plan rollover safe harbor notices

The IRS revised its explanation of safe harbor notice requirements for plan administrators when savers move funds out of an employer-sponsored plan.