Akron Tax Lawyers

There can be a bit of trouble if you have unresolved issues with the IRS. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

You can keep consequences to a minimum in any one of a number of ways. The first is called Offer in Compromise. There is a Congress-mandated program that allows taxpayers to try to make 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. Your property or wages will no longer be seizable once there is an offer in place. There are three different types of offers.

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 the most common type of offer you would make.

The third type of offer is called Effective Tax Administration. This is a rare offer in terms of acceptance 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 fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. Sometimes, you can simply sit and wait.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). When this happen, the taxpayer's account goes into Currently Not Collectible Status. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

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

Another method of obtaining relief from IRS tax debt is via bankruptcy. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Your sixth option is penalty abatement. Cancellation of any penalties is what this actually is. The original tax must still be fully paid.

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.

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.