St. Paul IRS Help

Having unresolved problems with the IRS can lead to severe consequences. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

There are a number of ways you can keep this from occurring. The first is called 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. The offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Having an offer in place, or pending, will cease the levy on your property or wages. There are three basic forms of this type of offer.

Doubt as to Liability is the first. This type of offer can only be made when the taxpayer questions whether he lawfully owes the money at all.

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.

Effective Tax Administration is the third type of compromise. These offers are rare, at least in terms of acceptance by the IRS. In this type of settlement, there is usually some difficulty in implementing payment.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. There is a time limit for the collection of income tax by the IRS. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. Sometimes, you can simply sit and wait.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. 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. 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.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). It is straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Your sixth option is penalty abatement. Cancellation of any penalties is what this actually is. You still must pay the original tax.

Finally, there is what is referred to as Innocent Spouse Relief. 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.