Stockton Tax Settlement

Having unresolved problems with the IRS can lead to severe consequences. 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. An Offer in Compromise is the first method we will discuss. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The offer can be less than the full amount but is calculated by the IRS. The IRS will no longer levy your property once there is an offer pending. This offer can be in one of three basic forms.

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

Doubt as to Collectability is the second of this offer type. When you think of an Offer in Compromise, this is typically what you would refer to.

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.

There is a second way of resolving IRS issues, and it is actually a fairly well-kept secret. The IRS must collect the income tax within a specific amount of time. 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.

This third method happens if the IRS determines that a taxpayer has no ability to pay. The debt, in this case, is put into a status called Currently Not Collectible. It is also called Status 53, as the number 53 corresponds to the screen number that an IRS employee sees upon not collectible status being implemented. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

An installment agreement or payment plan can also be initiated. You are probably already with this, it is 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 the sixth of your options. This is forgiveness by requesting a cancellation of penalties. You still owe your original debt.

Finally, there is what is referred to as Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

No matter which of these ‘methods' you choose to solve your IRS problems, it is wise to seek special counsel for 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.