Daytona Beach Tax Settlement

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).

There are a number of ways you can keep this from occurring. 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 offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Once there is an offer pending, the IRS will not levy your property. There are three basic forms of this type of offer.

The first is Doubt as to Liability. This type of offer can only be made when the taxpayer questions whether he lawfully owes the money at all.

The second offer type that comes under this category is Doubt as to Collectability. Within the Offer of Compromise Category, this is the most common.

The third type of offer is called Effective Tax Administration. 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.

The second basic way of resolving your IRS problems is a fairly well-kept secret. The IRS must collect the income tax within a specific amount of time. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. You can sometimes simply wait for this date.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). When this happen, the taxpayer's account goes into Currently Not Collectible Status. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). This is just what it sounds like.

Another method of obtaining relief from IRS tax debt is via bankruptcy. 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.

The sixth of your options is penalty abatement. This is cancellation of any penalties that have been incurred. You still owe your original 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.

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.