Miami Tax Lawyers

There can be severe consequences to having unresolved problems with the IRS. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

Keeping this fron happening is possible. Offer in Compromise is the first method we will look at. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. The offer can be less than the full amount but is calculated by the IRS. Once there is an offer pending, the IRS will not levy your property. The offer can be one of three different types.

The first is Doubt as to Liability. This type of offer can only be made when the taxpayer questions whether he lawfully owes the money at all.

The second offer type that comes under this category is Doubt as to Collectability. This is the most common type of offer and what people typically think of when they think of an Offer in Compromise.

The third type of offer is called Effective Tax Administration. These offers are rare, at least in terms of acceptance by the IRS. In this type of settlement, it is determined that the taxpayer can afford to pay but that there would be some difficulty in the procedure.

The second basic way of resolving your IRS problems is a fairly well-kept secret. The IRS must collect the income tax within a specific amount of time. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). Sometimes, you can simply sit and wait.

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. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

The fourth alternative is to set up an installment agreement of payment plan. This is just like any other payment plan you might be familiar with.

Another method of obtaining relief from IRS tax debt is via bankruptcy. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Penalty abatement is your sixth option. Cancellation of any penalties is what this actually is. You still must pay the original tax.

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

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.