Stockton Tax Lawyer

You do not want to have unresolved problems with the IRS. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

There are many ways to keep the consequences to a minimum. One way is referred to as making an Offer in Compromise. To settle their tax debt in full, taxayers can use this Congress-mandated program. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Having an offer in place, or pending, will cease the levy on your property or wages. There are three basic forms of this type of offer.

The first is called a Doubt as to Liability. Whether the taxpayer lawfully owes the money at all is what is in question here.

The second offer type that comes under this category is Doubt as to Collectability. When you think of an Offer in Compromise, this is the most common type of offer you would make.

Effective Tax Administration is the third type of offer. This type of offer is one of the most rarely accepted 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 is the second basic way of resolving problems with the IRS. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). Sometimes you can just wait for this date to elapse.

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. This is also referred to as Status 53, so named because the number on the screen that an IRS employee sees for this procedure is: 53. 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.

The fourth alternative is to set up an installment agreement of payment plan. It is straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is your sixth option. This is forgiveness by requesting a cancellation of penalties. The original tax debt is still owed.

The last of our seven methods is Innocent Spouse Relief. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

Regardless what your particular situation is, you are well advised to consult a professional to help implement any of these methods.

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.