Akron Income Tax Help

There can be severe consequences to having unresolved problems with the IRS. Failing to address the matter can result in the IRS putting a levy (seize) your assets - from your paycheck or bank account(s).

There are a number of ways to keep this from happening. The first is called Offer in Compromise. To settle their tax debt in full, taxayers can use this Congress-mandated program. The IRS can calculate an amount less than the full payment originally deemed due. Your property or wages will no longer be seizable once there is an offer in place. This type of offer has three basic forms.

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 of these is called Doubt as to Collectability. When you think of an Offer in Compromise, this is the most common type of offer you would make.

The third type of compromise is called Effective Tax Administration. This is a rare offer 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. 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.

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. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. 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 just like any other payment plan you might be familiar with.

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS 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.

Penalty abatement is another choice (the sixth we discuss here). This means you are requesting that penalties be cancelled. You still must pay the original tax.

Finally, there is what is referred to as Innocent Spouse Relief. Under specific circumstances, taxes due by a former or current spouse can be forgiven.

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.