Miami Tax Settlement

You do not want to have unresolved problems 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 to keep this from happening. Offer in Compromise is the first method we will look at. To settle their tax debt in full, taxayers can use this Congress-mandated program. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Having an offer in place, or pending, will cease the levy on your property or wages. This offer can be in one of three basic forms.

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

The second of these is called Doubt as to Collectability. This is the most common type of offer made in an Offer of Compromise.

The third type of offer is called Effective Tax Administration. The IRS rarely 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. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. You can sometimes simply wait for this date.

This third method happens if the IRS determines that a taxpayer has no ability to pay. Curently Not Collectible Status is what this type of status is called. 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. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

Setting up a payment plan or installment agreement is the fourth alternative. This is fairly straightforward.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Your sixth option is penalty abatement. This is forgiveness by requesting a cancellation of penalties. You still owe your original debt.

Innocent Spouse Relief is the last of our seven methods. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

When you are ready to resolve your IRS problems, you are well advised to seek professional assistance.

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.