Akron IRS Help

Having unresolved problems with the IRS can lead to severe consequences. Failing to address the matter can result in the IRS putting a levy (seize) your assets - from your paycheck or bank account(s).

Keeping this fron happening is possible. Offer in Compromise is the first method we will look at. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The offer can be less than the full amount but is calculated by the IRS. Having an offer in place, or pending, will cease the levy on your property or wages. This type of offer has three basic forms.

Doubt as to Liability is the first of these. Whether the taxpayer lawfully owes the money at all is what is in question here.

Doubt as to Collectability is the second of this offer type. Within the Offer of Compromise Category, this is the most common.

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, it is determined that the taxpayer can afford to pay but that there would be some difficulty in the procedure.

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.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). When this happen, the taxpayer's account goes into Currently Not Collectible Status. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. 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. 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.

Penalty abatement is another choice (the sixth we discuss here). In penalty abatement, quite simply, you are asking for those to be cancelled. The original tax debt is still owed.

Finally, there is what is referred to as Innocent Spouse Relief. If your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits, you may be entitled to relief from an IRS debt.

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.