St. Paul IRS Tax Relief

Having unresolved problems with the IRS can lead to severe consequences. 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. The first method we will look at is called Offer in Compromise. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt 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 is called a 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. This is the most common type of offer and what people typically think of when they think of an Offer in Compromise.

Effective Tax Administration is the third type of compromise. These offers are rare, at least in terms of acceptance by the IRS. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

The second basic way of resolving your IRS problems is a fairly well-kept secret. The IRS has a time limit for the collection of income tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). Sometimes you can just wait for this date to elapse.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. Currently Not Collectible is the name of the status of this situation. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

The fourth alternative is to set up an installment agreement of payment plan. This is just what it sounds like.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Penalty abatement is your sixth option. This is forgiveness by requesting a cancellation of penalties. The original tax must still be fully paid.

Innocent Spouse relief is also possible. Failure of a current or former spouse to file or pay taxes can be forgiven.

When you have had tax issues with the IRS, you are well advised to seek professional assistance for resolving the matter.

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.