Daytona Beach Tax Resolution

If you have unresolved issues with the IRS, you can be in for a bit of trouble. If one does not address the matter, the IRS can eventually levy (seize) 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. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. The taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. 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 of these is Doubt as to Liability. The lawfulness of the debt is what is in question here.

The second offer type that comes under this category is Doubt as to Collectability. Within the Offer of Compromise Category, this is the most common.

The name of the third type of compromise is Effective Tax Administration. The IRS rarely accepts this type of offer. It is for taxpayers who can afford to pay (at least on paper) but forcing them to do so would be difficult.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. The IRS must collect the income tax within a specific amount of time. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. It is sometimes possible to wait for the elapse of this date.

This third method happens if the IRS determines that a taxpayer has no ability to pay. Currently Not Collectible is the name of the status of this situation. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). This is just like any other payment plan you might be familiar with.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

The sixth of your options is penalty abatement. This is forgiveness by requesting a cancellation of penalties. The original tax debt is still owed.

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.

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.