Minneapolis Tax Attorney

If you have unresolved issues with the IRS, you can be in for a bit of trouble. Failing to address the matter can result in the IRS putting a levy (seize) your 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. Taxpayers have the option to settle their tax debt in full via 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 type of offer has three basic forms.

The first is called a Doubt as to Liability. The lawfulness of the debt is what is in question here.

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

Effective Tax Administration is the third type of compromise. This type of offer is one of the most rarely accepted by the IRS. It is for taxpayers who can afford to pay (at least on paper) but forcing them to do so would be difficult.

The second basic way of resolving your IRS problems is a fairly well-kept secret. The IRS must collect the income tax within a specific amount of time. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. You can sometimes simply wait for this date.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. 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. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

The fourth alternative is to set up an installment agreement of payment plan. This is fairly straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Penalty abatement is your sixth option. Cancellation of any penalties is what this actually is. The original tax debt is still owed.

The last of our seven methods is Innocent Spouse Relief. Under specific circumstances, taxes due by a former or current spouse can be forgiven.

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.