Minneapolis IRS Attorney

There can be severe consequences to having unresolved problems with the IRS. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

There are a number of ways to keep this from happening. One way is referred to as making an 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. 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 is Doubt as to Liability. Whether the taxpayer lawfully owes the money at all is what is in question here.

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

The third type of offer is called Effective Tax Administration. This is a rare offer in terms of acceptance by the IRS. In this type of settlement, it is determined that the taxpayer can afford to pay but that there would be some difficulty in the procedure.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. Sometimes you can just wait for this date to elapse.

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. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). It is straightforward.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is your sixth option. This is forgiveness by requesting a cancellation of penalties. The original tax must still be fully paid.

Finally, there is what is referred to as Innocent Spouse Relief. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

Regardless what your particular situation is, you are well advised to consult a professional to help implement any of these methods.

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.