Miami Tax Problem

Having unresolved problems with the IRS can lead to severe consequences. Funds from your bank account(s) or paycheck and be levied by the IRS without your even realizing it.

There are many ways to keep the consequences to a minimum. Offer in Compromise is the first method we will look at. To settle their tax debt in full, taxayers can use this Congress-mandated program. The offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Once there is an offer in place, your property and wages are no longer seizable. This type of offer has three basic forms.

The first is called a Doubt as to Liability. 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.

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, there is usually some difficulty in implementing payment.

The second basic way of resolving your IRS problems is a fairly well-kept secret. There is a time limit for the collection of income tax by the IRS. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. Sometimes you can just wait for this date to elapse.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

An installment agreement or payment plan can also be initiated. You are probably already with this, it is straightforward.

Another method of obtaining relief from IRS tax debt is via 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.

Your sixth option is penalty abatement. Cancellation of any penalties is what this actually is. You must still fully pay your original tax debt.

The last of our seven methods is Innocent Spouse Relief. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

Although some of these 'methods' may seem simple to implement, you are well advised to seek professional assistance when dealing with the IRS.

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.