Melbourne Tax Advice

If you have unresolved issues with the IRS, you can be in for a bit of trouble. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

Keeping this fron happening is possible. The first method we will look at is called Offer in Compromise. 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 the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. 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. What is in question here is whether the taxpayer lawfully owes the debt.

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.

The third type of compromise is called Effective Tax Administration. 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. The IRS must collect the income tax within a specific amount of time. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. It is possible to simply wait this out.

A third way of resolving IRS problems occurs when 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. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

Setting up a payment plan or installment agreement is the fourth alternative. It is straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Penalty abatement is your sixth option. This is cancellation of any penalties that have been incurred. You still must pay the original tax.

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

Regardless what your particular situation is, you are well advised to consult a professional to help implement any of these methods.

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.