St. Paul Tax Relief

You do not want to have unresolved problems with the IRS. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

There are a number of ways to keep this from happening. Offer in Compromise is the first method we will look at. To settle their tax debt in full, taxayers can use 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. The IRS will no longer levy your property once there is an offer pending. The offer can be one of three different types.

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

The second type of offer is called Doubt as to Collectability. Within the Offer of Compromise Category, this is the most common.

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 fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. 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. It is possible to simply wait this out.

This third method happens if the IRS determines that a taxpayer has no ability to pay. When this happen, the taxpayer's account goes into Currently Not Collectible Status. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

Setting up a payment plan or installment agreement is the fourth alternative. It is straightforward.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. In this case, some of the taxes and penalties owed may become discharged.

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

The last method is 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.

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.