Cleveland Tax Settlement

If you have unresolved issues with the IRS, you can be in for a bit of trouble. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

You can keep consequences to a minimum in any one of a number of ways. An Offer in Compromise is the first method we will discuss. There is a Congress-mandated program that allows taxpayers to try to make 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. This offer can be in one of three basic forms.

Doubt as to Liability is the first of these. One makes this type of offer only when there are questions as to whether the debt is lawfully owed.

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. This type of offer is one of the most rarely accepted 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. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. It is possible to simply wait this out.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. When this happen, the taxpayer's account goes into Currently Not Collectible Status. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). This is just like any other payment plan you might be familiar with.

Another method of obtaining relief from IRS tax debt is via bankruptcy. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Penalty abatement is another choice (the sixth we discuss here). Cancellation of any penalties is what this actually is. You still owe your original debt.

The last method is Innocent Spouse Relief. 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 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.