Miami Tax Settlement

You do not want to have unresolved problems with the IRS. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

You can keep consequences to a minimum in any one of a number of ways. An Offer in Compromise is the first method we will discuss. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The IRS can calculate an amount less than the full payment originally deemed due. Your property or wages will no longer be seizable once there is an offer in place. The offer can be one of three different types.

Doubt as to Liability is the first of these. The lawfulness of the debt is what is in question here.

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

The third type of compromise is called Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. In this type of settlement, there is usually some difficulty in implementing payment.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. It is based on the time limit for the collection of income tax. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. Sometimes you can just wait for this date to elapse.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. The debt, in this case, is put into a status called Currently Not Collectible. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. 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. You are probably already with this, it is straightforward.

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.

Penalty abatement is your sixth option. In penalty abatement, quite simply, you are asking for those to be cancelled. The original tax debt is still owed.

Innocent Spouse relief is also possible. Under specific circumstances, taxes due by a former or current spouse can be forgiven.

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.