Cleveland IRS Tax Relief

There can be severe consequences to having unresolved problems with the IRS. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

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 IRS can calculate an amount less than the full payment originally deemed due. Once there is an offer in place, your property and wages are no longer seizable. There are three different types of offers.

The first of these 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 the most common type of offer you would make.

The name of the third type of compromise is Effective Tax Administration. The IRS rarely accepts this type of offer. In this type of settlement, there is usually some difficulty in implementing payment.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. The IRS has a time limit for the collection of income tax. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. Sometimes you can just wait for this date to elapse.

This third method happens if the IRS determines that a taxpayer has no ability to pay. The debt, in this case, is put into a status called Currently Not Collectible. 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 like any other payment plan you might be familiar with.

The fifth method of obtaining relief from IRS issues is available via bankruptcy (in Chapter 13). Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

The sixth of your options is penalty abatement. Cancellation of any penalties is what this actually is. You must still fully pay your original tax debt.

The last of our seven methods is Innocent Spouse Relief. Under specific circumstances, taxes due by a former or current spouse can be forgiven.

Although some of these 'methods' may seem simple to implement, you are well advised to seek professional assistance when dealing with the IRS.

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.