Melbourne IRS Attorney

There can be a bit of trouble if you have unresolved issues with the IRS. Funds from your bank account(s) or paycheck and be levied by the IRS without your even realizing it.

There are a number of ways you can keep this from occurring. The first is called Offer in Compromise. To settle their tax debt in full, taxayers can use this Congress-mandated program. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Your property or wages will no longer be seizable once there is an offer in place. 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 of these is called 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. These offers are rare, at least in terms of acceptance by the IRS. In this type of settlement, there is usually some difficulty in implementing payment.

There is a second way of resolving IRS issues, and it is actually a fairly well-kept secret. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. Sometimes you can just wait for this date to elapse.

This third method happens if the IRS determines that a taxpayer has no ability to pay. The debt, in this case, is put into a status called Currently Not Collectible. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

An installment agreement or payment plan can also be initiated. This is just like any other payment plan you might be familiar with.

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 are dischargeable, and those that are not may be paid without interest.

Your sixth option is penalty abatement. This is cancellation of any penalties that have been incurred. You must still fully pay your original tax debt.

Innocent Spouse relief is also possible. 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.