Melbourne Income Tax Help

Having unresolved problems with the IRS can lead to severe consequences. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

There are a number of ways you can keep this from occurring. 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. Having an offer in place, or pending, will cease the levy on your property or wages. This offer can be in one of three basic forms.

Doubt as to Liability is the first of these. 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 third type of offer is called Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

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. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. It is sometimes possible to wait for the elapse of this date.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). The debt, in this case, is put into a status called Currently Not Collectible. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. 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 fairly straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. If you have filed for bankruptcy, some of the taxes and penalties are dischargeable and those that can't be may be paid without interest.

The sixth of your options is penalty abatement. This is forgiveness by requesting a cancellation of penalties. You still owe your original debt.

Innocent Spouse relief is also possible. Failure of a current or former spouse to file or pay taxes 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.