Akron IRS Attorney

Having unresolved problems with the IRS can lead to severe consequences. Funds from your bank account(s) or paycheck and be levied by the IRS without your even realizing it.

There are many ways to keep the consequences to a minimum. Offer in Compromise is the first method we will look at. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. The IRS will no longer levy your property once there is an offer pending. This offer can be in one of three basic forms.

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.

The second offer type that comes under this category is Doubt as to Collectability. Within the Offer of Compromise Category, this is the most common.

Effective Tax Administration is the third type of compromise. These offers are rare, at least in terms of acceptance by the IRS. It is designed for taxpayers whom the IRS feels can afford to pay their debt and applies when there may be some mitigating circumstances.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. There is a time limit for the collection of income tax by the IRS. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. Sometimes, you can simply sit and wait.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. The debt, in this case, is put into a status called Currently Not Collectible. It is also called Status 53, as the number 53 corresponds to the screen number that an IRS employee sees upon not collectible status being implemented. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

An installment agreement or payment plan can also be initiated. This is just what it sounds like.

Another method of obtaining relief from IRS tax debt is via bankruptcy. In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is the sixth of your options. In penalty abatement, quite simply, you are asking for those to be cancelled. You must still fully pay your original tax debt.

The last of our seven methods 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 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.