Cleveland Tax Help

There can be a bit of trouble if you have unresolved issues with the IRS. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

There are a number of ways you can keep this from occurring. The first is called Offer in Compromise. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The IRS can calculate an amount less than the full payment originally deemed due. Your property or wages will no longer be seizable once there is an offer in place. This offer can be in one of three basic forms.

The first is called a 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 offer type that comes under this category is Doubt as to Collectability. This is the most common type of offer made in an Offer of Compromise.

The third type of compromise is called Effective Tax Administration. These offers are rare, at least in terms of acceptance by the IRS. 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.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. The IRS must collect the income tax within a specific amount of time. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. 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. In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

You can set up, as your fourth alternative, a payment plan or installment agreement. This is fairly straightforward.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. In this case, some of the taxes and penalties owed may become discharged.

The sixth of your options is penalty abatement. This means you are requesting that penalties be cancelled. The original tax must still be fully paid.

Innocent Spouse relief is also possible. 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.

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.