Akron Tax Advice

You do not want to have 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. To settle their tax debt in full, taxayers can use this Congress-mandated program. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. The IRS will no longer levy your property once there is an offer pending. There are three different types of offers.

The first of these is Doubt as to Liability. What is in question here is whether the taxpayer lawfully owes the debt.

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

The third type of compromise is called Effective Tax Administration. The IRS rarely accepts this type of offer. It is for taxpayers who can afford to pay (at least on paper) but forcing them to do so would be difficult.

The second basic way of resolving your IRS problems is a fairly well-kept secret. The IRS has a time limit for the collection of income tax. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. Sometimes, you can simply sit and wait.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). The debt, in this case, is put 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. Although the collection statute continues to run, a taxpayer's 'debt' is put into hardship status for a year at a time under this Status.

An installment agreement or payment plan can also be initiated. It is straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

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

The last method is Innocent Spouse Relief. Failure of a current or former spouse to file or pay taxes can be forgiven.

Although some of these 'methods' may seem simple to implement, you are well advised to seek professional assistance when dealing with the IRS.

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.