Stockton Tax Lawyers

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. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt in full. The offer can be less than the full amount but is calculated by the IRS. The IRS will no longer levy your property once there is an offer pending. The offer can be one of three different types.

The first is called a Doubt as to Liability. One makes this type of offer only when there are questions as to whether the debt is lawfully owed.

The second of these is called Doubt as to Collectability. When you think of an Offer in Compromise, this is typically what you would refer to.

Effective Tax Administration is the third type of compromise. These offers are rare, at least in terms of acceptance by the IRS. It is for taxpayers who can afford to pay (at least on paper) but forcing them to do so would be difficult.

The second basic way of resolving your IRS problems is a fairly well-kept secret. It is based on the time limit for the collection of income tax. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. It is possible to simply wait this out.

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. 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 is to set up an installment agreement of payment plan. This is just like any other payment plan you might be familiar with.

If you are in Chapter 13, a bankrupt status, you may also obtain 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. In penalty abatement, quite simply, you are asking for those to be cancelled. You must still fully pay your original tax debt.

The last of our seven methods is Innocent Spouse Relief. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

When you are ready to resolve your IRS problems, you are well advised to seek professional 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.