Ft. Lauderdale IRS Tax 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.

You can keep consequences to a minimum in any one of a number of ways. One way is referred to as making an Offer in Compromise. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Once there is an offer in place, your property and wages are no longer seizable. This offer can be in one of three basic forms.

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

The second type of offer is called Doubt as to Collectability. This is the most common type of offer made in an Offer of Compromise.

The name of the third type of compromise is Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. In this type of settlement, there is usually some difficulty in implementing payment.

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. 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). In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. 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 to handling unresolved IRS issues is to set up an installment agreement (payment plan). You are probably already with this, 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. This is cancellation of any penalties that have been incurred. You still owe your original debt.

Finally, there is what is referred to as Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

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.