St. Paul IRS Attorney

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.

There are a number of ways you can keep this from occurring. The first method we will look at is called Offer in Compromise. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. The IRS will no longer levy your property once there is an offer pending. There are three basic forms of this type of offer.

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

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

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. In this type of settlement, usually the taxpayer is able to make the payment, but for some reason it is determined that it would be difficult to implement payment.

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. This is called the Collection Statute Expiration Date (CSED) and is generally ten years from the date of the assessment of the tax. It is possible to simply wait this out.

A third way of resolving IRS problems occurs when a taxpayer has no ability to pay. When this happen, the taxpayer's account goes into Currently Not Collectible Status. When you are in status of Currently Not Collectible, the screen number that the IRS employee looks at is 53 - hence the name. When in this status, a taxpayer's accounts are put into hardship for a year or so at a time.

You can set up, as your fourth alternative, a payment plan or installment agreement. This is fairly straightforward.

The fifth method of obtaining relief from IRS issues is available via bankruptcy (in Chapter 13). If you have filed for bankruptcy, some of the taxes and penalties are dischargeable and those that can't be may be paid without interest.

Penalty abatement is the sixth of your options. This is cancellation of any penalties that have been incurred. You must still fully pay your original tax debt.

Innocent Spouse Relief is the last of our seven methods. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

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.