Next Level Tax Resolution

IRS makes changes that will affect your taxes this year and next

IRS makes changes that will affect your taxes this year and next | CNN Business The IRS on Thursday announced adjustments it is making to a host of line items on your federal tax return for this year and next. Those updates are the result of changes in inflation but also due to provisions in the new tax law enacted in July.

When you're negotiating with the IRS, one of the most important things to understand is how they determine what you can actually afford to pay. The IRS doesn't just look at your income — they use a standardized framework called the Collection Financial Standards that benchmarks your allowable living expenses against national and local averages.

This framework accounts for housing, transportation, food, healthcare, and other necessities. If your actual expenses are higher than IRS standards, they may not all be recognized. If they're lower, the IRS assumes you have more available to pay toward your debt. Understanding how these standards work is critical — because it determines which resolution programs you qualify for and what the IRS will accept as a reasonable payment.

This is why the financial documentation phase of tax debt negotiation is so important. The income, expenses, assets, and liabilities you present directly shape your resolution options. Getting this wrong — understating expenses or presenting information in the wrong format — can close off options you legitimately have.

Our IRS Tax Debt Negotiation Blueprint covers how the IRS evaluates your financial situation in detail. If you're preparing to engage with the IRS about a tax balance, understanding this framework first is one of the most valuable things you can do before any conversation begins.

Choosing the right professional to help with your tax situation is one of the most consequential decisions you'll make — and it's worth getting right. The tax resolution landscape has a wide range of options, and not all of them are equal. Some are genuinely exceptional. Some are well-meaning but underqualified. And some are more interested in closing the sale than in actually resolving your problem.

How do you know the difference? Start with credentials. A CPA, enrolled agent, or tax attorney has the legal authority to represent you before the IRS. Verify that whoever you hire actually holds an active credential — not just a title. Then ask who will specifically be working on your case — not just who the firm employs, but who will review your file, develop your strategy, and communicate with the IRS on your behalf.

Ask about fees upfront and make sure you understand exactly what they cover. Ask what resolution options apply to your specific situation and why. A qualified professional should be able to explain your realistic options clearly and honestly — not just describe the best-case scenario. Our blog post on navigating the tax resolution landscape covers all of this in detail. If you've been putting off getting help, this is a good time to start. Your options are always best early in the process.

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If you've received an IRS audit notice, the most important thing you can do is not panic — and the second most important thing is not to wait. The actions you take in the early stages of an audit can significantly affect how the process unfolds, what documentation you need to gather, and ultimately what the outcome looks like.

Preparation starts with understanding exactly what the IRS is asking for. The notice will tell you what year is being examined and which items are in question — and it's important to respond to exactly that, and nothing more. Organizing your documentation clearly and completely, without volunteering additional information, is key.

What shouldn't you do? Don't ignore the notice. Don't respond without understanding the implications. Don't assume that because you know your return was filed correctly, the audit will automatically resolve in your favor. And don't underestimate the value of having a professional manage the process for you.

Expert representation during an audit isn't about hiding anything — it's about making sure the facts of your case are presented clearly, your rights are protected, and the process moves forward efficiently. Our blog post covers everything you need to know to prepare for an IRS audit and understand what expert representation looks like from start to finish. If you've received a notice and want to talk through your options, we're here.

"We guarantee we'll settle your tax debt!" If a tax relief company promises a specific result, be very careful. No legitimate firm can guarantee an outcome with the IRS — every case is different. Our guide breaks down the questions to ask about guarantees and what a company actually commits to in writing. The truth is, the right firm will be honest about what's realistic for your situation rather than making promises it can't keep. Learn how to tell the difference between confidence and empty promises before you sign.

If you owe the IRS money, you have more options than you probably realize — and understanding those options is the first step toward using them. The IRS offers a range of programs designed to help taxpayers who genuinely can't pay their full balance, and each one is designed for a different financial situation.

An installment agreement lets you pay your balance over time in monthly payments. An Offer in Compromise allows qualifying taxpayers to settle their debt for less than the full amount owed. Currently Not Collectible status is available for taxpayers who have no current ability to pay — it temporarily suspends collection activity while your situation is on file with the IRS. Penalty abatement can reduce or eliminate the penalties that have built up on your balance, sometimes significantly.

Each of these programs has eligibility requirements, application processes, and tradeoffs. What's right for one person isn't right for another — and the strategy that works best depends on your income, assets, expenses, and the nature of your tax debt. Our IRS Tax Debt Negotiation Blueprint breaks all of this down — what each program is, who it's designed for, and how the IRS evaluates eligibility. The question is which path applies to your situation — and this guide will help you start to figure that out.

Most people who owe the IRS money share the same instinct: wait, hope the problem fades, and reach out only when things get really bad. It's understandable — the IRS feels intimidating, and the fear of making things worse can be paralyzing. But this instinct is almost always the wrong move.

Here's what most people get wrong about IRS tax debt negotiation: they assume the IRS is unapproachable, that the amounts assessed are non-negotiable, and that the only options are to pay in full or face enforcement. None of that is accurate. The IRS has a structured set of resolution programs specifically designed for taxpayers who genuinely can't pay their full balance. They want resolution — not a drawn-out collection battle.

What actually matters is approaching negotiations with the right information, the right documentation, and a clear understanding of which programs apply to your situation. Going in unprepared — without knowing your options or what the IRS is looking for — is where most unrepresented taxpayers go wrong.

Our IRS Tax Debt Negotiation Blueprint lays out the framework for doing this right: how to assess your situation, how the IRS evaluates ability to pay, what programs exist, and how to pursue each one effectively. If you've been putting off dealing with IRS debt because you assumed your options were limited — this post is worth your time.

Still unsure what to do about an IRS CP14 notice? We explain what it means and how to respond — so you can resolve it with confidence.