Denver IRS Help

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).

There are many ways to keep the consequences to a minimum. Offer in Compromise is the first method we will look at. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Once there is an offer in place, your property and wages are no longer seizable. There are three different types of offers.

The first is Doubt as to Liability. The lawfulness of the debt is what is in question here.

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.

The third type of compromise is called Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. In this type of settlement, it is determined that the taxpayer can afford to pay but that there would be some difficulty in the procedure.

The second basic way of resolving your IRS problems is a fairly well-kept secret. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. 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.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. Currently Not Collectible is the name of the status of this situation. This is also referred to as Status 53, so named because the number on the screen that an IRS employee sees for this procedure is: 53. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

You can set up, as your fourth alternative, a payment plan or installment agreement. This is just what it sounds like.

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.

The sixth of your options is penalty abatement. In penalty abatement, quite simply, you are asking for those to be cancelled. You must still fully pay your original tax debt.

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.

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.