Sacramento Tax Problems

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. One way is referred to as making an Offer in Compromise. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Once there is an offer pending, the IRS will not levy your property. There are three basic forms of this type of offer.

The first of these is Doubt as to Liability. The lawfulness of the debt is what is in question here.

The second offer type that comes under this category is Doubt as to Collectability. When you think of an Offer in Compromise, this is the most common type of offer you would make.

The third type of offer is called Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. It is for taxpayers who can afford to pay (at least on paper) but forcing them to do so would be difficult.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. 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). It is sometimes possible to wait for the elapse of this date.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

Setting up a payment plan or installment agreement is the fourth alternative. This is just what it sounds like.

The fifth method of obtaining relief from IRS issues is available via bankruptcy (in Chapter 13). In this case, some of the taxes and penalties owed may become discharged.

Your sixth option is penalty abatement. This means you are requesting that penalties be cancelled. You still owe your original debt.

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.