Modesto Tax Lawyers

There can be severe consequences to having unresolved problems with the IRS. Failing to address the matter can result in the IRS putting a levy (seize) your assets - from your paycheck or 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. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Once there is an offer pending, the IRS will not levy your property. There are three basic forms of this type of offer.

The first 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. When you think of an Offer in Compromise, this is typically what you would refer to.

Effective Tax Administration is the third type of compromise. This is a rare offer in terms of acceptance by the IRS. In this type of settlement, usually the taxpayer is able to make the payment, but for some reason it is determined that it would be difficult to implement payment.

The second basic way of resolving your IRS problems is a fairly well-kept secret. 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.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. The debt, in this case, is put into a status called Currently Not Collectible. 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. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). You are probably already with this, it is straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Penalty abatement is your sixth option. This means you are requesting that penalties be cancelled. You must still fully pay your original tax debt.

The last method is Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

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.