Modesto IRS Help

You do not want to have unresolved problems with the IRS. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

You can keep consequences to a minimum in any one of a number of ways. Offer in Compromise is the first method we will look at. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. The IRS can calculate an amount less than the full payment originally deemed due. The IRS will no longer levy your property once there is an offer pending. There are three different types of offers.

Doubt as to Liability is the first. 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. Within the Offer of Compromise Category, this is the most common.

The name of the third type of compromise is 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.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. The IRS has a time limit for the collection of income tax. There is something called a Collection Statute Expiration Date (CSED), which is generally ten years. It is possible to simply wait this out.

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 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. You are probably already with this, it is straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

The sixth of your options is penalty abatement. Cancellation of any penalties is what this actually is. You still must pay the original tax.

Innocent Spouse Relief is the last of our seven methods. If your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits, you may be entitled to relief from an IRS debt.

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.