Ft. Lauderdale Tax Problem

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.

Keeping this fron happening is possible. The first method we will look at is called Offer in Compromise. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt in full. The offer can be less than the full amount but is calculated by the IRS. Your property or wages will no longer be seizable once there is an offer in place. There are three different types of offers.

The first 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 of these is called Doubt as to Collectability. When you think of an Offer in Compromise, this is typically what you would refer to.

Effective Tax Administration is the third type of offer. It is a rare event when the IRS accepts this type of offer. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. There is a time limit for the collection of income tax by the IRS. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. Sometimes you can just wait for this date to elapse.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. Currently Not Collectible is the name of the status of this situation. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. 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 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 owed may become discharged.

Penalty abatement is your sixth option. In penalty abatement, quite simply, you are asking for those to be cancelled. The original tax must still be fully paid.

The last method is 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.

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.