Stockton Tax Settlement

If you have unresolved issues with the IRS, you can be in for a bit of trouble. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

There are a number of ways you can keep this from occurring. One way is referred to as making an Offer in Compromise. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. The IRS can calculate an amount less than the full payment originally deemed due. Having an offer in place, or pending, will cease the levy on your property or wages. There are three different types of offers.

Doubt as to Liability is the first of these. This type of offer can only be made when the taxpayer questions whether he lawfully owes the money at all.

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

Effective Tax Administration is the third type of compromise. This type of offer is one of the most rarely accepted by the IRS. In this type of settlement, usually the taxpayer is able to make the payment, but for some reason it is determined that it would be difficult to implement payment.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. The IRS must collect the income tax within a specific amount of time. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. Sometimes, you can simply sit and wait.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). The debt, in this case, is put 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. Although the collection statute continues to run, a taxpayer's 'debt' is put into hardship status for a year at a time under this Status.

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

Another method of obtaining relief from IRS tax debt is via bankruptcy. In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is another choice (the sixth we discuss here). Cancellation of any penalties is what this actually is. The original tax must still be fully paid.

The last method is Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

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.