Daytona Beach IRS Lawyer

You do not want to have unresolved problems 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 many ways to keep the consequences to a minimum. Offer in Compromise is the first method we will look at. 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 in place, your property and wages are no longer seizable. This type of offer has three basic forms.

The first of these is Doubt as to Liability. This type of offer can only be made when the taxpayer questions whether he lawfully owes the money at all.

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

The third type of compromise is called Effective Tax Administration. The IRS rarely accepts this type of offer. In this type of settlement, usually the taxpayer is able to make the payment, but for some reason it is determined that it would be difficult to implement payment.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. There is a time limit for the collection of income tax by the IRS. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. It is possible to simply wait this out.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). Currently Not Collectible is the name of the status of this situation. 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. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

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 owed may become discharged.

Penalty abatement is another choice (the sixth we discuss here). Cancellation of any penalties is what this actually is. You must still fully pay your original tax debt.

Innocent Spouse relief is also possible. 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.