Orlando Income Tax Help

There can be a bit of trouble if you have unresolved issues with the IRS. 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. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. The offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Having an offer in place, or pending, will cease the levy on your property or wages. The offer can be one of three different types.

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

The second type of offer is called Doubt as to Collectability. 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. This type of offer is one of the most rarely accepted 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.

There is a second way of resolving IRS issues, and it is actually a fairly well-kept secret. The IRS must collect the income tax within a specific amount of time. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. It is sometimes possible to wait for the elapse of this date.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. When this happen, the taxpayer's account goes into Currently Not Collectible Status. It is also called Status 53, as the number 53 corresponds to the screen number that an IRS employee sees upon not collectible status being implemented. 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. This is just what it sounds like.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Penalty abatement is the sixth of your options. This means you are requesting that penalties be cancelled. The original tax must still be fully paid.

Innocent Spouse relief is also possible. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

When you are ready to resolve your IRS problems, you are well advised to seek professional 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.