St. Paul Tax Attorney

There can be severe consequences to having unresolved problems with the IRS. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

Keeping this fron happening is possible. One way is referred to as making an Offer in Compromise. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt in full. The IRS can calculate an amount less than the full payment originally deemed due. Your property or wages will no longer be seizable once there is an offer in place. There are three different types of offers.

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

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

Effective Tax Administration is the third type of offer. It is a rare event when the IRS accepts this type of offer. 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 time limit for the collection of income tax. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. It is sometimes possible to wait for the elapse of this date.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). The debt, in this case, is put into a status called Currently Not Collectible. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

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

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Your sixth option is penalty abatement. This is cancellation of any penalties that have been incurred. You must still fully pay your original tax debt.

The last method is Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

When you have had tax issues with the IRS, you are well advised to seek professional assistance for resolving the matter.

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.