Daytona Beach IRS Lawyer

There can be severe consequences to having unresolved problems with the IRS. Failing to address the matter can result in the IRS putting a levy (seize) your assets - from your paycheck or bank account(s).

You can keep consequences to a minimum in any one of a number of ways. 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. The offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Once there is an offer pending, the IRS will not levy your property. This offer can be in one of three basic forms.

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

The second offer type that comes under this category is 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. It is a rare event when the IRS accepts this type of offer. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. There is a time limit for the collection of income tax by the IRS. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. You can sometimes simply wait for this date.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. Curently Not Collectible Status is what this type of status is called. 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.

You can set up, as your fourth alternative, a payment plan or installment agreement. It is straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. If you have filed for bankruptcy, some of the taxes and penalties are dischargeable and those that can't be may be paid without interest.

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

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.

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.