Minneapolis Tax Lawyer

There can be a bit of trouble if you have unresolved issues 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 a number of ways to keep this from happening. 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 taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Once there is an offer in place, your property and wages are no longer seizable. This offer can be in one of three basic forms.

The first is 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 is a rare offer in terms of acceptance 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.

The second basic way of resolving your IRS problems is a fairly well-kept secret. There is a time limit for the collection of income tax by the IRS. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. 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. Curently Not Collectible Status is what this type of status is called. 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 Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

Setting up a payment plan or installment agreement is the fourth alternative. This is just like any other payment plan you might be familiar with.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Penalty abatement is your sixth option. This is cancellation of any penalties that have been incurred. You still owe your original debt.

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.

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.