Sacramento IRS Tax Attorney

There can be severe consequences to having unresolved problems with the IRS. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

Keeping this fron happening is possible. The first method we will look at is called Offer in Compromise. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The IRS can calculate an amount less than the full payment originally deemed due. Once there is an offer in place, your property and wages are no longer seizable. This offer can be in one of three basic forms.

The first of these is Doubt as to Liability. The lawfulness of the debt is what is in question here.

Doubt as to Collectability is the second type of offer. This is the most common type of offer made in an Offer of Compromise.

The third type of offer is called Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. It is based on the time limit for the collection of income tax. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. It is sometimes possible to wait for the elapse of this date.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

Setting up a payment plan or installment agreement is the fourth alternative. It is straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. If you have filed for bankruptcy, some of the taxes and penalties are dischargeable and those that can't be may be paid without interest.

Your sixth option is penalty abatement. In penalty abatement, quite simply, you are asking for those to be cancelled. The original tax must still be fully paid.

Innocent Spouse Relief is the last of our seven methods. If your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits, you may be entitled to relief from an IRS debt.

When you are ready to resolve your IRS problems, you are well advised to seek professional assistance.

American Tax Lawyer, Darrin T. Mish represents taxpayers all over the United States and on every inhabited continent. His many years of experience in dealing with tax problems benefit clients tremendously. For more information, visit http//americantaxlawyer.com. Darrin may be reached by calling toll free (888) 438-6474.