Sacramento Tax Problems

There can be severe consequences to having unresolved problems with the IRS. Funds from your bank account(s) or paycheck and be levied by the IRS without your even realizing it.

There are many ways to keep the consequences to a minimum. The first is called Offer in Compromise. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. 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 type of offer has three basic forms.

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

Doubt as to Collectability is the second type of offer. When you think of an Offer in Compromise, this is the most common type of offer you would make.

The third type of compromise is called Effective Tax Administration. This type of offer is one of the most rarely accepted by the IRS. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. 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. Sometimes you can just wait for this date to elapse.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. 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 Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). This is just what it sounds like.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. 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. Cancellation of any penalties is what this actually is. The original tax must still be fully paid.

Innocent Spouse relief is also possible. 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.