Modesto Tax Relief

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

Keeping this fron happening is possible. The first method we will look at is called Offer in Compromise. 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. The IRS will no longer levy your property once there is an offer pending. This type of offer has three basic forms.

The first is Doubt as to Liability. What is in question here is whether the taxpayer lawfully owes the debt.

The second of these is called Doubt as to Collectability. When you think of an Offer in Compromise, this is typically what you would refer to.

Effective Tax Administration is the third type of offer. These offers are rare, at least in terms of acceptance by the IRS. In this type of settlement, there is usually some difficulty in implementing payment.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. It is possible to simply wait this out.

This third method happens if the IRS determines that a taxpayer has no ability to pay. Curently Not Collectible Status is what this type of status is called. 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. Taxpayer's accounts are placed in hardship status for a year or so at a time, but 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 fairly 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.

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 the last of our seven methods. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

Regardless what your particular situation is, you are well advised to consult a professional to help implement any of these methods.

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.