Modesto Tax Attorney

You do not want to have unresolved problems with the IRS. 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. To settle their tax debt in full, taxayers can use this Congress-mandated program. The offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Your property or wages will no longer be seizable once there is an offer in place. This offer can be in one of three basic forms.

Doubt as to Liability is the first. 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 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, there is usually some difficulty in implementing payment.

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.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. When this happen, the taxpayer's account goes into Currently Not Collectible Status. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). 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 are dischargeable, and those that are not may be paid without interest.

Your sixth option is penalty abatement. This means you are requesting that penalties be cancelled. The original tax must still be fully paid.

Finally, there is what is referred to as 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.

No matter which of these ‘methods' you choose to solve your IRS problems, it is wise to seek special counsel for 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.