Stockton Tax Settlement

There can be a bit of trouble if you have unresolved issues with the IRS. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

There are a number of ways to keep this from happening. An Offer in Compromise is the first method we will discuss. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. 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 offer can be in one of three basic forms.

Doubt as to Liability is the first. What is in question here is whether the taxpayer lawfully owes the debt.

Doubt as to Collectability is the second of this offer type. When you think of an Offer in Compromise, this is typically what you would refer to.

The name of the third type of compromise is Effective Tax Administration. This type of offer is one of the most rarely accepted by the IRS. 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. The IRS has a time limit for the collection of income tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). Sometimes, you can simply sit and wait.

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. 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 fairly straightforward.

Another method of obtaining relief from IRS tax debt is via bankruptcy. 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 forgiveness by requesting a cancellation of penalties. You must still fully pay your original tax debt.

The last of our seven methods is 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.

When you are ready to resolve your IRS problems, you are well advised to seek professional 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.