Orlando Tax Attorney

There can be severe consequences to having unresolved problems with the IRS. 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. One way is referred to as making an Offer in Compromise. To settle their tax debt in full, taxayers can use this Congress-mandated program. The IRS can calculate an amount less than the full payment originally deemed due. The IRS will no longer levy your property once there is an offer pending. This type of offer has three basic forms.

The first of these is Doubt as to Liability. Whether the taxpayer lawfully owes the money at all is what is in question here.

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

The name of the third type of compromise is 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.

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. 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. It is also called Status 53, as the number 53 corresponds to the screen number that an IRS employee sees upon not collectible status being implemented. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

An installment agreement or payment plan can also be initiated. It is straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. 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. You still owe your original debt.

Innocent Spouse Relief is the last of our seven methods. 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.