Sacramento IRS Lawyer

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. 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. The offer can be less than the full amount but is calculated by the IRS. Once there is an offer in place, your property and wages are no longer seizable. There are three basic forms of this type of offer.

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

The third type of offer is called Effective Tax Administration. This type of offer is one of the most rarely accepted by the IRS. In this type of settlement, usually the taxpayer is able to make the payment, but for some reason it is determined that it would be difficult to implement payment.

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. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. It is sometimes possible to wait for the elapse of this date.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. In this case, the taxpayer's account can be placed into a status called Currently Not Collectible. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

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

If you are in bankruptcy, you may be eligible for the fifth 'method' of obtaining IRS tax debt relief. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

Penalty abatement is your sixth option. This means you are requesting that penalties be cancelled. You must still fully pay your original tax debt.

Innocent Spouse Relief is the last of our seven methods. Failure of a current or former spouse to file or pay taxes can be forgiven.

Although some of these 'methods' may seem simple to implement, you are well advised to seek professional assistance when dealing with the IRS.

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.