breakthrough-tax-resolution

Why Divorce Requires a Tax Resolution Expert

Wed, 01 Apr 2026 12:36:52 GMT

Divorce brings a heavy wave of emotional and logistical challenges. While you focus on dividing household items and finalizing living arrangements, the IRS waits quietly in the background. Tax issues during a divorce often catch couples completely by surprise, leading to massive financial headaches down the road.

Untangling a shared financial life is rarely as simple as splitting everything down the middle. Without proper guidance, you might unknowingly take on a massive tax burden. This post will explain why bringing in a professional tax resolution expert is crucial during a divorce. You will learn about common tax traps, how complex asset division affects your bottom line, and how an expert protects your financial future.

The Hidden Financial Pitfalls of Divorce

When you dissolve a marriage, you also dissolve a financial partnership. The tax code treats married couples much differently than single individuals. Moving from one status to the other triggers a cascade of tax implications.

Many people rely entirely on their divorce attorney to handle the financial split. However, family law attorneys specialize in state divorce laws, not federal tax codes. A tax resolution expert steps in to fill this critical knowledge gap. They evaluate the proposed settlement strictly through a tax lens, ensuring you do not agree to terms that will bankrupt you come tax season.

Common Tax Issues That Arise During Divorce

A tax resolution expert helps you navigate several specific challenges that arise when a marriage ends. Here are the most common areas where mistakes happen.

Changing Your Filing Status

Your marital status on December 31 determines your filing options for the entire year. If your divorce finalizes on the last day of the year, the IRS considers you unmarried for that entire tax year.

You must decide whether to file as Single or Head of Household. If the divorce is still pending at year-end, you must choose between Married Filing Jointly or Married Filing Separately. A tax resolution expert helps you run the numbers for each scenario. They identify which status minimizes your tax liability and protects you from your ex-spouse's potential tax debts.

The Complex Division of Assets

Splitting a $100,000 bank account is easy. Splitting a $100,000 retirement account or a primary residence is incredibly complicated.

Different assets carry different tax consequences. If you cash out a 401(k) to pay off your ex-spouse, you might face a 10% early withdrawal penalty plus standard income taxes. A tax expert can help you execute a Qualified Domestic Relations Order (QDRO) to transfer retirement funds without triggering these massive penalties. Furthermore, they help you understand the capital gains taxes associated with keeping or selling the family home.

Alimony and Child Support Rules

Tax laws surrounding spousal support changed significantly in recent years. For divorces finalized after December 31, 2018, the payer can no longer deduct alimony payments, and the recipient no longer reports them as taxable income.

Child support remains completely tax-neutral. However, deciding which parent gets to claim the child as a dependent for the Child Tax Credit often causes bitter disputes. A tax resolution professional will outline the exact IRS tie-breaker rules and help you structure an agreement that maximizes tax benefits for your new household.

Why You Need a Tax Resolution Expert

Handling a divorce without specialized tax advice is like navigating a minefield blindfolded. A tax resolution expert provides a vital layer of protection.

Clarity Amidst Chaos

Tax laws change constantly. Trying to decipher IRS publications while dealing with the emotional fallout of a divorce is overwhelming. An expert translates complex tax jargon into plain English. They review your financial settlement before you sign it, projecting your future tax liabilities so you know exactly what your true net worth will be post-divorce.

Protection from Future IRS Audits

When married couples file jointly, both spouses are entirely responsible for the tax bill. This concept is called joint and several liability. If your ex-spouse underreported their income or claimed fraudulent deductions while you were married, the IRS can come after you for the missing money.

A tax resolution expert can help you file for Innocent Spouse Relief. This special provision can protect you from paying taxes, interest, and penalties that resulted from your former partner's actions.

Taking Control of Your Financial Future

Divorce marks the end of a chapter, but it also serves as the foundation for your new financial life. Do not let hidden tax liabilities ruin your fresh start. By hiring a professional tax resolution expert, you ensure compliance with complex tax regulations and secure the best possible financial outcome.

If you are currently going through a divorce or dealing with post-divorce tax complications, take action immediately. Choosing the right tax resolution partner can make all the difference—this is where Breakthrough Tax Resolution stands apart.

With years of specialized experience handling complex tax matters during divorce, Patrick H. Wanzer, CPA, CTRC, CDS of Breakthrough Tax Resolution brings deep expertise to your unique situation. He understands both the tax code and the real-life challenges divorced individuals face. Patrick has a strong track record of helping clients protect their assets, avoid costly IRS mistakes, and secure favorable outcomes—even in the most complicated cases.

What sets Patrick apart is his personalized approach. He doesn’t just provide generic advice – he takes the time to review your entire financial picture and work closely with your legal team to ensure that every aspect of your settlement is tax-efficient. From negotiating the division of high-value assets to identifying the best filing status and ensuring compliance with the latest IRS regulations, Patrick offers customized solutions tailored to you.

Clients routinely praise Patrick and Breakthrough Tax Resolution for guiding them through audits, securing Innocent Spouse Relief, and resolving years of back tax debt that could have otherwise derailed their new financial lives. If you want peace of mind and confidence as you navigate tax challenges during your divorce, contact Patrick Wanzer today to review your settlement, safeguard your assets, and start your next chapter on solid ground.

Patrick Wanzer Earns Certified Divorce Professional Credential, Strengthening Support for Clients Facing Divorce‑Related IRS Issues

Thu, 26 Mar 2026 13:43:08 GMT

Expanding Expertise to Better Serve Clients Facing Divorce‑Related IRS Challenges

Breakthrough Tax Resolution is proud to announce that founder Patrick Wanzer, CPA , has earned the Certified Divorce Professional (CDP) designation from the National Association of Divorce Professionals (NADP) . This advanced credential reflects Patrick’s continued commitment to serving individuals and attorneys who are navigating the financial and emotional complexities of divorce, especially when IRS issues are involved.

A New Level of Expertise for Divorce‑Focused Tax Resolution

The CDP program provides in‑depth training across the legal, financial, and emotional dimensions of divorce. Through this certification, Patrick expanded his skills in interdisciplinary collaboration, high‑conflict communication, and best practices for guiding clients through one of life’s most challenging transitions.

For many divorcing individuals, tax issues are deeply intertwined with the separation process. Patrick has built his practice around helping clients untangle themselves from IRS liabilities connected to a former spouse. His specialized work includes:

Innocent Spouse Relief, Separation of Liability, and Equitable Relief
IRS disputes involving improperly filed or fraudulent joint returns
Multi‑year tax investigations during divorce
Tax review and financial clarity for settlement negotiations

“The CDP training reinforces what my clients need most during divorce — clear communication, steady guidance, and a professional who understands both the tax code and the emotional landscape they’re navigating,” Patrick said. “This certification allows me to serve them with even greater empathy, precision, and confidence.”

A Trusted Partner for Divorce Attorneys

Divorce attorneys frequently rely on Patrick to help identify tax exposure, analyze joint returns, and provide expert insight during settlement negotiations. With the CDP credential, he brings an even deeper understanding of the divorce process and the interdisciplinary teamwork required to protect clients’ financial futures.

Patrick’s support for attorneys includes:

Identifying hidden risks within joint tax filings
Clarifying tax liabilities tied to a spouse’s actions
Translating complex IRS issues into clear, actionable guidance
Strengthening negotiation strategies with accurate tax analysis

His ability to bridge tax expertise with divorce‑specific communication skills makes him a valuable resource for legal professionals seeking to safeguard their clients.

About the National Association of Divorce Professionals (NADP)

The NADP is a national organization dedicated to connecting and educating professionals who serve divorcing clients. Its Certified Divorce Professional program equips practitioners with advanced training in communication, conflict awareness, and the multifaceted realities of divorce, ensuring they can better support clients during a highly sensitive time.

Schedule a Complimentary Consultation

If you need guidance on divorce‑related IRS issues or if you are a legal or divorce professional seeking a trusted tax resolution partner, Patrick offers complimentary consultations to help you navigate your next steps with clarity and confidence.

Book a consultation: https://calendly.com/pwanzer/initial-consultation-tax-resolution

Defining Your Core Services: Focusing Your Firm's Offerings

Wed, 11 Feb 2026 16:19:18 GMT

Defining Your Core Services: Focusing Your Firm's Offerings

Early in my career, I believed that offering a wide array of services was essential for business growth. The idea was simple: the more services I provided, the more clients I would attract. However, I soon realized that this "jack-of-all-trades" approach could dilute my brand, stretch resources too thin, and ultimately keep me from becoming a true specialist in any area. It became clear to me that the path to sustainable growth lies not in expanding offerings, but in refining and focusing them in a clear direction.

Through the process of strategically defining and concentrating on core services, I discovered how I could build a stronger reputation, attract the clients I wanted to work with, and operate more efficiently. In this post, I'll share my own journey – from my time at Edgewater CPA Group to founding Breakthrough Tax Resolution – to demonstrate the power of specialization.

The Pitfall of Being a Generalist

When I worked for Edgewater CPA Group, it was tempting to say "yes" to every client who came through the door. I handled a broad portfolio – tax resolution, compliance, bookkeeping, payroll, tax preparation, and financial consulting. Serving every need seemed like the way to maximize revenue and client satisfaction. Instead, I soon found that clients were often unsure of what I did best.

Juggling so many services meant spreading our expertise over multiple disciplines. It became harder to stay current on changing regulations and best practices in every area, and the quality of our work sometimes suffered as a result. We weren't standing out as experts; instead, we risked becoming generalists in a crowded landscape.

My Shift to Focus: The Story Behind Breakthrough Tax Resolution

Over time, I realized that the work I found most impactful – and that clients appreciated the most – was tax resolution. Helping individuals and businesses resolve complex IRS issues was challenging but incredibly rewarding. Through my experience at Edgewater CPA Group, I saw that clients facing unpaid taxes, levies, or audits weren't looking for a generalist. They wanted a specialist who understood the intricacies of tax resolution inside and out.

This insight led me to take a leap: the owner of Edgewater and I partnered together and spun off Breakthrough Tax Resolution into its own entity focusing exclusively on tax resolution services. Breakthrough Tax Resolution chose not to do bookkeeping and general compliance work, choosing instead to invest its resources, training, and energy into being a true expert in one area. We rebranded Breakthrough Tax Resolution, streamlined its workflows, and reoriented its marketing to speak directly to people in need of tax relief.

This decision transformed Breakthrough Tax Resolution in the following ways:

Enhanced Market Positioning: By specializing, Breakthrough Tax Resolution is positioned as the go-to expert for those facing serious tax problems. Breakthrough Tax Resolution’s marketing has become more focused, reaching out to the people who needed our help the most.

Increased Client Trust: Clients who were in trouble with the IRS looked for someone who specialized in tax resolution. Focusing narrowly on this area built instant credibility and trust, reassuring clients that they were in expert hands.

Improved Operational Efficiency: Focusing on one core service allowed Breakthrough Tax Resolution to develop deep expertise in tax resolution. Our processes became streamlined, cases moved faster, and our outcomes improved – for both clients and the business as a whole.

How You Can Define Your Firm's Core Services

My journey from generalist to specialist convinced me that every firm can benefit from focus. Here are the steps I recommend for identifying and honing your own core services:

1. Analyze Your Strengths and Passions

Start by reflecting on your past work. Which projects were most successful? Which services did your team enjoy providing? For me, I found that tax resolution not only yielded the best outcomes for clients but also gave me a sense of purpose and satisfaction.

Review your client feedback and financials. Look for areas where you consistently deliver value and where your unique strengths shine.

2. Identify Your Most Valuable Clients

The services that align with your best clients are often your strongest areas. Think about the client relationships that are both rewarding and profitable. At Edgewater, my most impactful work came from helping clients through stressful tax situations. That’s when I realized my ideal clients had specific, urgent needs I could uniquely address.

Understanding your best fit clients allows you to shape your offerings for those who most benefit from them – and who are most likely to appreciate your expertise.

3. Assess the Market and Competition

Before making the leap to specialize, research your market. Is there a real need for this service? Who else is offering it, and how can you stand out? I saw that while other firms offered tax support, few could demonstrate the depth of expertise and personalized touch I’d developed through years of hands-on resolution work.

A focused approach is not about eliminating competition but about defining what makes you different and better for the clients you serve.

The Benefits of a Focused Approach

Narrowing your services can feel risky at first, but I can attest that the rewards are well worth it. Specialization makes Breakthrough Tax Resolution a recognized expert in its field. It simplified my business, made my marketing message clear, and allowed me to command premium pricing.

Internally, we developed greater efficiency and a culture of excellence. By concentrating effort and resources in one area, we built a more resilient business that delivers better results for clients – and greater satisfaction for our team and myself.

If you’re feeling spread thin or struggling to stand out, I encourage you to look closely at your strengths and passions. Define your core services, focus your efforts, and step confidently into your own space as a true expert. The difference is transformative, both for your business and for the clients you serve.

Patrick H. Wanzer, CPA, CTRS

pwanzer@edgewatercpa.com

317.218.4689

www.edgewatercpa.com

The 10-Year Collection Statute – Why is it so Important

Mon, 12 Feb 2024 16:36:37 GMT

The 10-Year Collection Statute – Why is it so Important

In tax resolution cases, there are many strategies that come into play when formulating a plan to resolve a tax debt. From allowable expenses, to equity in assets, and many other items, effectively solving a tax problem for a taxpayer has many angles. One angle is using the “Collection Statute Expiration Date” or CSED to a taxpayer’s advantage. The CSED is important because the amount of time remaining on the collection statute helps determine which solution the practitioner should select.

What is the Collection Statute Expiration Date or CSED? Once the IRS assesses tax on a taxpayer, the IRS has by statute, 10 years from the date of assessment to collect the tax. In most cases, after 10 years the tax debt becomes unenforceable and the IRS writes-off the debt on the taxpayer’s account. This makes the CSED a very useful tool in planning a tax resolution case for a client.

If the tax liability is recent and the CSED is years away, then the client may want to look at submitting an Installment Agreement or Offer-in-Compromise to resolve the debt. However, if the CSED is closer and not much time remains on the collection statute, then it may make more sense to look at other alternatives such as being deemed Currently-not-Collectible and letting the collection statute run out.

However, letting the statute run out isn’t always the best option. For example, a client comes in with a tax debt of $95,000.00 of which $55,000.00 is only months away from running out the collection statute (the client has five different years of tax debt all with different CSEDs). At first glance, it appears that the best bet would be to let the collection statute run out and have the IRS write-off $55,000.00. That isn’t always the case. With a $95,000.00 tax debt the client qualified to file an Offer-in-Compromise with an offer of $8,000.00 – a savings of $87,000.00. However, if the CSED runs out on the $55,000.00 in debt then the total tax debt remaining would drop to $40,000.00. At this point the client no longer qualified to file an Offer-in-Compromise. The client had to file a streamlined Installment Agreement and pay the entire $40,000.00 in remaining tax to the IRS over time. While at first glance, letting the collection statute run its course seems like a prudent course of action, it actually resulted in the taxpayer paying $32,000.00 more because the $55,000.00 in tax debt was written-off.

That is why the Collection Statute Expiration Date is so important in any tax resolution case. Knowing how to effectively plan a response that incorporates the CSED is imperative to getting a taxpayer the best result possible. Resolving tax debts can be tricky but a tax professional with experience dealing with the IRS can help formulate the best path forward.

If you or anyone you know has a tax issue with the Internal Revenue Service or the Indiana Department of Revenue, please schedule a phone or in-person consultation today. Your tax issues won’t go away on their own, but with the help of an experienced Tax Resolution Specialist, you can put your tax problems behind you once and for all.

Patrick H. Wanzer, CPA, CTRS

pwanzer@edgewatercpa.com

317.218.4689

www.edgewatercpa.com

IRS Installment Agreements – Which One Is Right For You

Mon, 12 Feb 2024 16:36:36 GMT

IRS Installment Agreements – Which One Is Right For You

An Installment Agreement is nothing more than an agreement with the IRS to pay the tax owed over an extended timeframe. Installment Agreements are an excellent way to stay compliant with the IRS if a taxpayer cannot pay their taxes when they are due. The IRS is not really interested in seizing a taxpayer’s assets. The IRS would much rather work with the taxpayer to pay his or her taxes over time.

The IRS has four types of Installment Agremeents: Guaranteed Installment Agreement, Streamlined Installment Agreement, Financially Verified Installment Agreement, and a Partial Pay Installment Agreement. Which payment plan is best for a taxpayer depends on the facts and circumstances of the taxpayer’s case. There are different rules governing different payment plans. Knowing the rules of each plan can help a taxpayer pick the best plan for them.

Guaranteed Installment Agreement

The first type of payment plan is an “Guaranteed Installment Agreement”. This payment plan is exactly what it sounds like. It is a payment plan that is guaranteed to be accepted by the IRS. A taxpayer will qualify for a Guaranteed Installment Agreement if:

The tax they owe is less than $10,000.00.

They are not currently in an Installment Agreement

They are unable to pay the tax owed in 120 days

Tax paid in full within three years

Streamlined Installment Agreement

The next type of payment plan is a “Streamlined Installment Agreement”. A Streamlined Installment Agreement is similar to a Guaranteed Installment Agreement but with a bit more scrutiny. A taxpayer will qualify for a Streamlined Installment Agreement if:

The tax, penalties, and interest owed is less than $250,000.00 (as long as the tax has not been assigned to enforcement).

The balance is paid within 72 months

The payment is equal to or greater than the acceptable minimum monthly payment

Financially Verified Installment Agreement (or Regular Installment Agreement)

This installment agreement may be available to a taxpayer if the taxpayer owes more than $250,000.00. The IRS will not automatically approve this type of Installment Agreement. They will review the information submitted and it may require some negotiation to get the agreement approved. To be eligible for a Financially Verified Installment Agreement, one must:

Owe more than $250,000.00 in tax, penalties, and interest

Fill out IRS Form 433-F – Collection Information Statement (to provide the IRS with information regarding the taxpayer’s income, expenses, assets, and liabilities).

A taxpayer will usually have to wait a few months for the IRS to review the agreement

Partial-Pay Installment Agreement

This is the least common type of Installment Agreement but can be very effective. With a Partial-Pay Installment Agreement, a taxpayer enters into a payment plan with the IRS to partially pay the tax liability over the remaining months on the collection statute. The taxpayer makes monthly payments and once the tax reaches the Collection Statute Expiration Date, the remaining tax is written-off by the IRS. To qualify for a Partial-Pay Installment Agreement one must complete IRS form 433-F – Collection Information Statement. The IRS will review the assets owned by the taxpayer to see if there is equity the taxpayer can tap to pay the tax. The IRS will also require a new Collection Information Statement to be filed every two years for their review.

With any Installment Agreement a taxpayer must maintain tax compliance. That means filing all subsequent tax returns on time (including extension deadlines), paying all estimated taxes on time (if one is required to pay estimated taxes), and/or having the correct amount of tax withheld from your pay. The IRS is willing to allow a payment plan, however the IRS does not want to be revolving door of payment plans for years to come.

If a taxpayer does not know which payment plan is the best option, they should talk with a tax resolution specialist. A tax resolution specialist will look at all the facts and circumstances and can recommend a strategy that would be the best path forward for the taxpayer.

Patrick H. Wanzer, CPA, CTRS

pwanzer@edgewatercpa.com

317.218.4689

www.edgewatercpa.com

An IRS Offer-in-Compromise - What Is It?w

Mon, 12 Feb 2024 16:36:35 GMT

An IRS Offer-in-Compromise - What Is It?

An OIC is an agreement between a taxpayer and the IRS that allows for the settlement of outstanding tax liabilities for less than what is owed. This type of agreement can be a great option for taxpayers who are unable to pay their full tax debt, as it allows them to make one lump sum payment (or series of payments) in exchange for settling their debt.

When submitting an OIC, taxpayers must provide proof of their financial situation and demonstrate that they cannot afford to pay the entire balance of tax owed. Taxpayers must prove to the IRS that the Reasonable Collection Potential (RCP) - the total amount of tax the IRS can reasonably expect to collect over the remaining time on the tax collection statute - is less than the tax owed. Taxpayers will need to provide documents to prove that their RCP is less than the tax owed and therefore eligible for an OIC. Once the OIC is submitted it can take nine to 15 months for the IRS to accept reject the offer. If accepted, taxpayers can make a single lump sum payment or may opt for a short-term monthly payment plan arrangement.

To qualify for an OIC, taxpayers must meet certain eligibility requirements. These include being up-to-date with all tax filing requirements and not having any open bankruptcy cases against them. Taxpayers must also be up-to-date with their estimated tax payments. Additionally, taxpayers should be aware that any money paid from the offer is used to pay the tax owed. Lastly, taxpayers must maintain tax compliance for five years following the acceptance of the OIC. If they do not maintain tax compliance (filing tax returns on time and making estimated tax payments), the IRS can terminate the OIC, reinstate the full balance of the tax owed, and begin collection proceedings again.

An Offer-in Compromise (OIC) can provide much needed relief when it comes to settling unpaid taxes with the IRS, however it is important to remember that not everyone qualifies for this program and applicants should carefully review all eligibility requirements before submitting an OIC. Additionally, anyone considering an OIC should consult with a qualified Tax Resolution Specialist who can assist in determining whether this type of solution will work best for their situation. With proper guidance, settling your tax debt could become significantly easier with an approved OIC from the IRS!

Patrick H. Wanzer, CPA, CTRS

pwanzer@edgewatercpa.com

317.218.4689