Daytona Beach Tax Problem

There can be severe consequences to having unresolved problems with the IRS. Failing to address the matter can result in the IRS putting a levy (seize) your assets - from your paycheck or bank account(s).

Keeping this fron happening is possible. An Offer in Compromise is the first method we will discuss. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt in full. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Having an offer in place, or pending, will cease the levy on your property or wages. This offer can be in one of three basic forms.

Doubt as to Liability is the first. Whether the taxpayer lawfully owes the money at all is what is in question here.

Doubt as to Collectability is the second type of offer. When you think of an Offer in Compromise, this is typically what you would refer to.

The third type of offer is called Effective Tax Administration. These offers are rare, at least in terms of acceptance by the IRS. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. The IRS must collect the income tax within a specific amount of time. 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 just wait for this date to elapse.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. The debt, in this case, is put into a status called Currently Not Collectible. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. 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.

You can set up, as your fourth alternative, a payment plan or installment agreement. You are probably already with this, it is straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. 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. You still owe your original debt.

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

No matter which of these ‘methods' you choose to solve your IRS problems, it is wise to seek special counsel for 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.