Miami Tax Debt Relief

There can be a bit of trouble if you have unresolved issues 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. The first method we will look at is called Offer in Compromise. To settle their tax debt in full, taxayers can use this Congress-mandated program. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Your property or wages will no longer be seizable once there is an offer in place. This type of offer has three basic forms.

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

The second of these is called Doubt as to Collectability. This is the most common type of offer and what people typically think of when they think of an Offer in Compromise.

Effective Tax Administration is the third type of compromise. This type of offer is one of the most rarely accepted 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.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. There is a time limit for the collection of income tax by the IRS. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. You can sometimes simply wait for this date.

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. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

The fourth alternative is to set up an installment agreement of payment plan. This is fairly straightforward.

Another method of obtaining relief from IRS tax debt is via bankruptcy. If you have filed for bankruptcy, some of the taxes and penalties are dischargeable and those that can't be may be paid without interest.

Penalty abatement is your sixth option. This is forgiveness by requesting a cancellation of penalties. The original tax must still be fully paid.

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

When you have had tax issues with the IRS, you are well advised to seek professional assistance for resolving the matter.

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.