Stockton Tax Lawyer

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

There are many ways to keep the consequences to a minimum. Offer in Compromise is the first method we will look at. To settle their tax debt in full, taxayers can use 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. Once there is an offer in place, your property and wages are no longer seizable. The offer can be one of three different types.

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 of these is called Doubt as to Collectability. This is the most common type of offer and what people typically think of when they think of an Offer in Compromise.

The third type of compromise is called Effective Tax Administration. 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.

There is a second way of resolving IRS issues, and it is actually a fairly well-kept secret. 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. Sometimes, you can simply sit and wait.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. Currently Not Collectible is the name of the status of this situation. 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 this status, a taxpayer's accounts are put into hardship for a year or so at a time.

The fourth alternative is to set up an installment agreement of payment plan. This is fairly straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in 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 means you are requesting that penalties be cancelled. You still must pay the original tax.

Innocent Spouse relief is also possible. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

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.