Modesto IRS Help

There can be a bit of trouble if you have unresolved issues with the IRS. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

There are a number of ways to keep this from happening. Offer in Compromise is the first method we will look at. This is a program mandated by Congress that allows taxpayers the option of making an offer to settle their tax debt in full. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Your property or wages will no longer be seizable once there is an offer in place. This offer can be in one of three basic forms.

The first of these is Doubt as to Liability. One makes this type of offer only when there are questions as to whether the debt is lawfully owed.

The second offer type that comes under this category is Doubt as to Collectability. This is the most common type of offer made in an Offer of Compromise.

The third type of compromise is called Effective Tax Administration. 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 constitutes the second basic way to resolve IRS difficulties. It is based on the time limit for the collection of income tax. 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). Curently Not Collectible Status is what this type of status is called. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

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

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. 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.

The sixth of your options 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. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

No matter which of these ‘methods' you choose to solve your IRS problems, it is wise to seek special counsel for 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.