Cleveland IRS Tax Help

Having unresolved problems with the IRS can lead to severe consequences. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

Keeping this fron happening is possible. The first method we will look at is called Offer in Compromise. Taxpayers have the option to settle their tax debt in full via 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. Having an offer in place, or pending, will cease the levy on your property or wages. This type of offer has three basic forms.

Doubt as to Liability is the first of these. This type of offer can only be made when the taxpayer questions whether he lawfully owes the money at all.

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

The third type of offer is called Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. 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 fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). Sometimes you can just wait for this date to elapse.

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. 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. 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.

The sixth of your options is penalty abatement. This is cancellation of any penalties that have been incurred. You still must pay the original tax.

Finally, there is what is referred to as Innocent Spouse Relief. If your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits, you may be entitled to relief from an IRS debt.

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.