Ft. Lauderdale Tax Relief

You do not want to have unresolved problems with the IRS. If one does not address the matter, the IRS can eventually levy (seize) assets from your paycheck or bank account(s).

There are a number of ways you can keep this from occurring. 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 offer can be less than the full amount but is calculated by the IRS. Your property or wages will no longer be seizable once there is an offer in place. This offer can be in one of three basic forms.

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

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

Effective Tax Administration is the third type of offer. The IRS rarely accepts this type of offer. 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. It is based on the fact that the IRS actually has a time limit during which they must collect their tax. Generally ten years from assessment of the tax, the Collection Statute Expiration Date (CSED) occurs. It is possible to simply wait this out.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. The debt, in this case, is put into a status called Currently Not Collectible. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. Although the collection statute continues to run, a taxpayer's 'debt' is put into hardship status for a year at a time under this Status.

An installment agreement or payment plan can also be initiated. You are probably already with this, it is straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

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

The last of our seven methods is Innocent Spouse Relief. Under specific circumstances, taxes due by a former or current spouse can be forgiven.

Regardless what your particular situation is, you are well advised to consult a professional to help implement any of these methods.

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.