Modesto IRS 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).

You can keep consequences to a minimum in any one of a number of ways. The first method we will look at is called Offer in Compromise. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts 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. What is in question here is whether the taxpayer lawfully owes the debt.

The second of these is called Doubt as to Collectability. Within the Offer of Compromise Category, this is the most common.

Effective Tax Administration is the third type of compromise. The IRS rarely accepts this type of offer. 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.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). It is possible to simply wait this out.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). Curently Not Collectible Status is what this type of status is called. 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.

An installment agreement or payment plan can also be initiated. This is just like any other payment plan you might be familiar with.

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.

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

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.

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.