Sacramento IRS Tax Attorney

Having unresolved problems with the IRS can lead to severe consequences. Funds from your bank account(s) or paycheck and be levied by the IRS without your even realizing it.

There are a number of ways you can keep this from occurring. The first method we will look at is called Offer in Compromise. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. The offer the taxpayer makes can be for less than the full amount owed, but it is calculated by the IRS. Having an offer in place, or pending, will cease the levy on your property or wages. The offer can be one of three different types.

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

Doubt as to Collectability is the second type of offer. This is the most common type of offer and what people typically think of when they think of an Offer in Compromise.

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, it is determined that the taxpayer can afford to pay but that there would be some difficulty in the procedure.

The second basic way of resolving your IRS problems is a fairly well-kept secret. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. Sometimes, you can simply sit and wait.

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. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. 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). You are probably already with this, it is straightforward.

The fifth method of obtaining relief from IRS issues is available via bankruptcy (in Chapter 13). In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is the sixth of your options. In penalty abatement, quite simply, you are asking for those to be cancelled. The original tax debt is still owed.

Innocent Spouse relief is also possible. 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 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.