Modesto IRS Help

There can be severe consequences to having unresolved problems with the IRS. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

You can keep consequences to a minimum in any one of a number of ways. The first method we will look at 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 offer can be less than the full amount but is calculated by the IRS. Once there is an offer pending, the IRS will not levy your property. This type of offer has three basic forms.

Doubt as to Liability is the first. Whether the taxpayer lawfully owes the money at all is what is in question here.

Doubt as to Collectability is the second type of offer. When you think of an Offer in Compromise, this is the most common type of offer you would make.

The name of the third type of compromise is Effective Tax Administration. It is a rare event when the IRS 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 just wait for this date to elapse.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. Curently Not Collectible Status is what this type of status is called. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. 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 fairly straightforward.

Another method of obtaining relief from IRS tax debt is via bankruptcy. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Penalty abatement is your sixth option. In penalty abatement, quite simply, you are asking for those to be cancelled. You still owe your original debt.

The last of our seven methods is Innocent Spouse Relief. If your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits, you may be entitled to relief from an IRS debt.

Although some of these 'methods' may seem simple to implement, you are well advised to seek professional assistance when dealing with the IRS.

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.