Orlando Tax Problems

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

You can keep consequences to a minimum in any one of a number of ways. The first method we will look at is called Offer in Compromise. To settle their tax debt in full, taxayers can use this Congress-mandated program. The offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Once there is an offer in place, your property and wages are no longer seizable. There are three different types of offers.

The first is 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. 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. 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.

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. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. Sometimes, you can simply sit and wait.

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. 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. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

Setting up a payment plan or installment agreement is the fourth alternative. This is just what it sounds like.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. If you have filed for bankruptcy, some of the taxes and penalties are dischargeable and those that can't be may be paid without interest.

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

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.