St. Paul Income Tax Help

There can be severe consequences to having unresolved problems with the IRS. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

You can keep consequences to a minimum in any one of a number of ways. The first method we will look at is called Offer in Compromise. 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. The IRS will no longer levy your property once there is an offer pending. The offer can be one of three different types.

The first of these is Doubt as to Liability. Whether the taxpayer lawfully owes the money at all is what is in question here.

The second of these is called Doubt as to Collectability. When you think of an Offer in Compromise, this is typically what you would refer to.

Effective Tax Administration is the third type of offer. These offers are rare, at least in terms of acceptance 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 is the second basic way of resolving problems with the IRS. 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). When this happen, the taxpayer's account goes into Currently Not Collectible Status. It is also called Status 53, as the number 53 corresponds to the screen number that an IRS employee sees upon not collectible status being implemented. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

You can set up, as your fourth alternative, a payment plan or installment agreement. This is just what it sounds like.

Another method of obtaining relief from IRS tax debt is via bankruptcy. In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is your sixth option. Cancellation of any penalties is what this actually is. You still must pay the original tax.

The last method is Innocent Spouse Relief. Under specific circumstances, taxes due by a former or current spouse 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.