Modesto Tax Resolution

You do not want to have unresolved problems with the IRS. 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 to keep this from happening. An Offer in Compromise is the first method we will discuss. Taxpayers have the option to settle their tax debt in full via this Congress-mandated program. 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 different types of offers.

Doubt as to Liability is the first. What is in question here is whether the taxpayer lawfully owes the debt.

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

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

The second basic way of resolving your IRS problems is a fairly well-kept secret. The IRS has a time limit for the collection of income tax. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. It is sometimes possible to wait for the elapse of this date.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). The debt, in this case, is put into a status called Currently Not Collectible. 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. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

Setting up a payment plan or installment agreement is the fourth alternative. This is just what it sounds like.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. 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. In penalty abatement, quite simply, you are asking for those to be cancelled. You must still fully pay your original tax debt.

Finally, there is what is referred to as Innocent Spouse Relief. 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.

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.