St. Paul 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).

There are a number of ways you can keep this from occurring. The first method we will look at is called Offer in Compromise. 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. Having an offer in place, or pending, will cease the levy on your property or wages. This type of offer has three basic forms.

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

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.

Effective Tax Administration is the third type of compromise. These offers are rare, at least in terms of acceptance by the IRS. 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 fairly well-kept secret that is the second basic way of resolving problems with the IRS. There is a time limit for the collection of income tax by the IRS. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. It is sometimes possible to wait for the elapse of this date.

This third method happens if the IRS determines that 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. 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.

Penalty abatement is your sixth option. This is cancellation of any penalties that have been incurred. 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.

Regardless what your particular situation is, you are well advised to consult a professional to help implement any of these methods.

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.