Minneapolis Tax Lawyers

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.

Keeping this fron happening is possible. Offer in Compromise is the first method we will look at. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt in full. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Once there is an offer pending, the IRS will not levy your property. There are three different types of offers.

Doubt as to Liability is the first. 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 and what people typically think of when they think of an Offer in Compromise.

The third type of offer is called Effective Tax Administration. The IRS rarely accepts this type of offer. In this type of settlement, there is usually some difficulty in implementing payment.

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. In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. Although the collection statute continues to run, a taxpayer's 'debt' is put into hardship status for a year at a time under this Status.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). It is straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. 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 must pay the original tax.

Finally, there is what is referred to as Innocent Spouse Relief. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

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.