Minneapolis IRS Tax Help

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).

Keeping this fron happening is possible. 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 taxpayer can make an offer to 'settle for less' and the IRS would determine the amount. Having an offer in place, or pending, will cease the levy on your property or wages. There are three basic forms of this type of offer.

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

The second type of offer is called Doubt as to Collectability. When you think of an Offer in Compromise, this is the most common type of offer you would make.

Effective Tax Administration is the third type of compromise. These offers are rare, at least in terms of acceptance 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.

Now we will discuss the second basic way of resolving your problem, and it is a well-kept secret. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). 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. This is also referred to as Status 53, so named because the number on the screen that an IRS employee sees for this procedure is: 53. 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 fairly straightforward.

The fifth method of obtaining relief from IRS issues is available via bankruptcy (in Chapter 13). Some of the taxes and penalties or interest levied by the IRS may be discharged in this case.

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

The last of our seven methods is Innocent Spouse Relief. Failure of a current or former spouse to file or pay taxes 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.