Daytona Beach Tax Settlement

Having unresolved problems with the IRS can lead to severe consequences. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

There are a number of ways you can keep this from occurring. The first is called Offer in Compromise. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. The offer can be less than the full amount but is calculated by the IRS. Your property or wages will no longer be seizable once there is an offer in place. This type of offer has three basic forms.

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

Doubt as to Collectability is the second of this offer type. Within the Offer of Compromise Category, this is the most common.

Effective Tax Administration is the third type of offer. This type of offer is one of the most rarely accepted by the IRS. It is for taxpayers who can afford to pay (at least on paper) but forcing them to do so would be difficult.

There is a second way of resolving IRS issues, and it is actually a fairly 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.

This third method happens if the IRS determines that a taxpayer has no ability to pay. 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.

You can set up, as your fourth alternative, a payment plan or installment agreement. It is straightforward.

Another method of obtaining relief from IRS tax debt is via bankruptcy. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Penalty abatement is your sixth option. This is forgiveness by requesting a cancellation of penalties. You must still fully pay your original tax debt.

The last of our seven methods is Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

When you have had tax issues with the IRS, you are well advised to seek professional assistance for resolving the matter.

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.