Cleveland Income Tax Help

You do not want to have 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 a number of ways you can keep this from occurring. The first is called Offer in Compromise. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. The IRS can calculate an amount less than the full payment originally deemed due. Once there is an offer in place, your property and wages are no longer seizable. There are three basic forms of this type of offer.

The first is called a Doubt as to Liability. One makes this type of offer only when there are questions as to whether the debt is lawfully owed.

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.

The third type of compromise is called Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. 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. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. 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. 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. Although the collection statute continues to run, a taxpayer's 'debt' is put into hardship status for a year at a time under this Status.

You can set up, as your fourth alternative, a payment plan or installment agreement. This is fairly straightforward.

The fifth method of obtaining relief from IRS issues is available via bankruptcy (in Chapter 13). In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is another choice (the sixth we discuss here). In penalty abatement, quite simply, you are asking for those to be cancelled. You must still fully pay your original tax debt.

The last method is Innocent Spouse Relief. If your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits, you may be entitled to relief from an IRS debt.

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.