Sacramento Tax Lawyers

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

There are many ways to keep the consequences to a minimum. 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. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Your property or wages will no longer be seizable once there is an offer in place. This type of offer has three basic forms.

The first is called a 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. This is the most common type of offer made in an Offer of Compromise.

Effective Tax Administration is the third type of offer. The IRS rarely accepts this type of offer. In this type of settlement, there is usually some difficulty in implementing payment.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. It is based on the time limit for the collection of income tax. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. It is sometimes possible to wait for the elapse of this date.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. Curently Not Collectible Status is what this type of status is called. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

Setting up a payment plan or installment agreement is the fourth alternative. It is straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

The sixth of your options is penalty abatement. This is forgiveness by requesting a cancellation of penalties. You still must pay the original tax.

Innocent Spouse relief is also possible. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

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.