St. Paul Tax Problem

If you have unresolved issues with the IRS, you can be in for a bit of trouble. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

Keeping this fron happening is possible. Offer in Compromise is the first method we will look at. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt in full. 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.

Doubt as to Liability is the first. What is in question here is whether the taxpayer lawfully owes the debt.

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.

The name of the third type of compromise is Effective Tax Administration. This type of offer is one of the most rarely accepted by the IRS. 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 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. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). You can sometimes simply wait for this date.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. When this happen, the taxpayer's account goes into Currently Not Collectible Status. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

The fourth alternative is to set up an installment agreement of payment plan. This is fairly 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 another choice (the sixth we discuss here). Cancellation of any penalties is what this actually is. You still must pay the original tax.

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

When you have had tax issues with the IRS, you are well advised to seek professional assistance for resolving the matter.

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.