Akron Tax Lawyer

If you have unresolved issues with the IRS, you can be in for a bit of trouble. 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. One way is referred to as making an Offer in Compromise. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Your property or wages will no longer be seizable once there is an offer in place. There are three basic forms of this type of offer.

The first is called a 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. Within the Offer of Compromise Category, this is the most common.

The name of the third type of compromise is Effective Tax Administration. The IRS rarely 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 fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. The IRS has a time limit for the collection of income tax. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. It is possible to simply wait this out.

This third method happens if the IRS determines that a taxpayer has no ability to pay. Curently Not Collectible Status is what this type of status is called. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

The fourth alternative is to set up an installment agreement of 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). Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

The sixth of your options is penalty abatement. Cancellation of any penalties is what this actually is. The original tax debt is still owed.

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.