Denver Tax Problems

Having unresolved problems with the IRS can lead to severe consequences. Funds from your bank account(s) or paycheck and be levied by the IRS without your even realizing it.

There are a number of ways you can keep this from occurring. 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 IRS can calculate an amount less than the full payment originally deemed due. Once there is an offer in place, your property and wages are no longer seizable. There are three different types of offers.

The first of these 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. 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 offer. These offers are rare, at least in terms of acceptance 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 second way of resolving IRS issues, and it is actually a fairly well-kept secret. It is based on the time limit for the collection of income tax. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. It is sometimes possible to wait for the elapse of 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. It is also called Status 53, as the number 53 corresponds to the screen number that an IRS employee sees upon not collectible status being implemented. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

You can set up, as your fourth alternative, a payment plan or installment agreement. You are probably already with this, 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.

Your sixth option is penalty abatement. Cancellation of any penalties is what this actually is. The original tax must still be fully paid.

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.

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.