Sacramento IRS Tax Relief

If you have unresolved issues with the IRS, you can be in for a bit of trouble. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

There are many ways to keep the consequences to a minimum. 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 IRS can calculate an amount less than the full payment originally deemed due. Your property or wages will no longer be seizable once there is an offer in place. There are three basic forms of this type of offer.

The first of these is Doubt as to Liability. The lawfulness of the debt is what is in question here.

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. The IRS rarely accepts this type of offer. 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. The IRS has a time limit for the collection of income tax. 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 simply sit and wait.

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. This is also referred to as Status 53, so named because the number on the screen that an IRS employee sees for this procedure is: 53. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

Setting up a payment plan or installment agreement is the fourth alternative. 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 another choice (the sixth we discuss here). This means you are requesting that penalties be cancelled. You still owe your original debt.

Innocent Spouse Relief is the last of our seven methods. Under specific circumstances, taxes due by a former or current spouse can be forgiven.

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.