Orlando IRS Attorney

There can be severe consequences to having unresolved problems with the IRS. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

You can keep consequences to a minimum in any one of a number of ways. The first is called Offer in Compromise. Taxpayers have the option to settle their tax debt in full via 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. Once there is an offer pending, the IRS will not levy your property. This type of offer has three basic forms.

The first is Doubt as to Liability. The lawfulness of the debt 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 name of the third type of compromise is Effective Tax Administration. This type of offer is one of the most rarely accepted by the IRS. 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. It is based on the time limit for the collection of income tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). Sometimes you can just wait for this date to elapse.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. This is also referred to as Status 53, so named because the number on the screen that an IRS employee sees for this procedure is: 53. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

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.

The fifth method of obtaining relief from IRS issues is available via bankruptcy (in Chapter 13). Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

The sixth of your options is penalty abatement. This is forgiveness by requesting a cancellation of penalties. The original tax debt is still owed.

Innocent Spouse relief is also possible. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

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.