Modesto Tax Resolution

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

There are a number of ways to keep this from happening. The first method we will look at is called Offer in Compromise. 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. Once there is an offer pending, the IRS will not levy your property. This offer can be in one of three basic forms.

Doubt as to Liability is the first. The lawfulness of the debt is what is in question here.

Doubt as to Collectability is the second type of offer. This is the most common type of offer made in an Offer of Compromise.

Effective Tax Administration is the third type of offer. This type of offer is one of the most rarely accepted by the IRS. In this type of settlement, there is usually some difficulty in implementing payment.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. The IRS must collect the income tax within a specific amount of time. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. 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). 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). This is fairly straightforward.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. In this case, some of the taxes and penalties owed may become discharged.

Penalty abatement is the sixth of your options. Cancellation of any penalties is what this actually is. The original tax debt is still owed.

Finally, there is what is referred to as Innocent Spouse Relief. This, too, is what it sounds like - if your current or former spouse failed to report income, you may be entitled to relief.

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.