Stockton IRS Tax Lawyer

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).

There are many ways to keep the consequences to a minimum. 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 taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Having an offer in place, or pending, will cease the levy on your property or wages. There are three basic forms of this type of offer.

Doubt as to Liability is the first. Whether the taxpayer lawfully owes the money at all is what is in question here.

Doubt as to Collectability is the second type of offer. This is the most common type of offer made in an Offer of Compromise.

Effective Tax Administration is the third type of compromise. This type of offer is one of the most rarely accepted 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.

There is a second way of resolving IRS issues, and it is actually a fairly well-kept secret. The IRS must collect the income tax within a specific amount of time. 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.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). Curently Not Collectible Status is what this type of status is called. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. 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 is to set up an installment agreement of payment plan. It is straightforward.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. In this case, some of the taxes and penalties owed may become discharged.

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

Innocent Spouse Relief is the last of our seven methods. Under specific circumstances, taxes due by a former or current spouse can be forgiven.

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.