Denver IRS Tax Relief

If you have unresolved issues with the IRS, you can be in for a bit of trouble. The IRS can even seize funds from your paycheck or bank account(s) if you fail to address the matter.

You can keep consequences to a minimum in any one of a number of ways. One way is referred to as making an Offer in Compromise. To settle their tax debt in full, taxayers can use this Congress-mandated program. The offer can be less than the full amount but is calculated by the IRS. 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 of these. One makes this type of offer only when there are questions as to whether the debt is lawfully owed.

The second offer type that comes under this category is Doubt as to Collectability. When you think of an Offer in Compromise, this is typically what you would refer to.

The third type of offer is called Effective Tax Administration. This is a rare offer 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.

There is a fairly well-kept secret that constitutes the second basic way to resolve IRS difficulties. The IRS has a time limit for the collection of income tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). Sometimes, you can simply sit and wait.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. Curently Not Collectible Status is what this type of status is called. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. Taxpayer's accounts are placed in hardship status for a year or so at a time, but the collection statute continues to run.

The fourth alternative is to set up an installment agreement of payment plan. This is just like any other payment plan you might be familiar with.

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.

Your sixth option is penalty abatement. This is forgiveness by requesting a cancellation of penalties. You must still fully pay your original tax debt.

The last method 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.