Cleveland Tax Attorney

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.

Keeping this fron happening is possible. The first method we will look at is called Offer in Compromise. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. The IRS can calculate an amount less than the full payment originally deemed due. The IRS will no longer levy your property once there is an offer pending. There are three basic forms of this type of offer.

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

Doubt as to Collectability is the second type of offer. 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. In this type of settlement, there is usually some difficulty in implementing payment.

The second basic way of resolving your IRS problems is a fairly well-kept secret. It is based on the time limit for the collection of income tax. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. 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. Status 53 refers to the screen number of Currently Not Collectible Status at the IRS. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

Setting up a payment plan or installment agreement is the fourth alternative. This is fairly straightforward.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Your sixth option is penalty abatement. This is forgiveness by requesting a cancellation of penalties. You still must pay the original tax.

The last method 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.

When you are ready to resolve your IRS problems, you are well advised to seek professional assistance.

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.