Orlando Tax Lawyer

If you have unresolved issues with the IRS, you can be in for a bit of trouble. 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. An Offer in Compromise is the first method we will discuss. 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. Having an offer in place, or pending, will cease the levy on your property or wages. This type of offer has three basic forms.

Doubt as to Liability is the first. One makes this type of offer only when there are questions as to whether the debt is lawfully owed.

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

Effective Tax Administration is the third type of compromise. This type of offer is one of the most rarely accepted by the IRS. In this type of settlement, there is usually some difficulty in implementing payment.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. 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.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. Curently Not Collectible Status is what this type of status is called. 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. 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 is to set up an installment agreement of payment plan. This is fairly straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is another choice (the sixth we discuss here). This is forgiveness by requesting a cancellation of penalties. You must still fully pay your original tax debt.

Finally, there is what is referred to as Innocent Spouse Relief. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

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.