Stockton Tax 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).

You can keep consequences to a minimum in any one of a number of ways. One way is referred to as making an Offer in Compromise. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. 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 in place, your property and wages are no longer seizable. There are three basic forms of this type of offer.

The first is Doubt as to Liability. 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 typically what you would refer to.

Effective Tax Administration is the third type of offer. This type of offer is one of the most rarely accepted by the IRS. In this type of settlement, usually the taxpayer is able to make the payment, but for some reason it is determined that it would be difficult to implement payment.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. There is a time limit for the collection of income tax by the IRS. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. Sometimes, you can simply sit and wait.

This third method happens if the IRS determines that a taxpayer has no ability to pay. The debt, in this case, is put into a status called Currently Not Collectible. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

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.

Another method of obtaining relief from IRS tax debt is via bankruptcy. In this case, some of the taxes and penalties owed may become discharged.

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

The last of our seven methods is Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

Although some of these 'methods' may seem simple to implement, you are well advised to seek professional assistance when dealing with the IRS.

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.