Stockton IRS Help

If you have unresolved issues with the IRS, you can be in for a bit of trouble. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

There are many ways to keep the consequences to a minimum. Offer in Compromise is the first method we will look at. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. The offer can be less than the full amount but is calculated by the IRS. Having an offer in place, or pending, will cease the levy on your property or wages. This offer can be in one of three basic forms.

The first is called a Doubt as to Liability. Whether the taxpayer lawfully owes the money at all is what is in question here.

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 third type of compromise is called Effective Tax Administration. The IRS rarely accepts this type of offer. In this type of settlement, it is determined that the taxpayer can afford to pay but that there would be some difficulty in the procedure.

There is a second way of resolving IRS issues, and it is actually a fairly well-kept secret. The IRS must collect the income tax within a specific amount of time. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. You can sometimes simply wait for this date.

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. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

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.

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.

Your sixth option is penalty abatement. This is cancellation of any penalties that have been incurred. The original tax debt is still owed.

The last of our seven methods is Innocent Spouse Relief. If your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits, you may be entitled to relief from an IRS debt.

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.