Hi! My name is Darrin Mish and I am an attorney with National Tax Problem Resolution Practice Base in Tampa, Florida. In turning my 15 years of practice there are questions that arise again and again so, I thought it was take this opportunity to answer some of those questions in this video format. There are 20 videos all together and you’d like to have access to the other 19 videos, please visit my website at GetIRSHelpVideos.com.
Now, the first question that comes to mind that people out call a time, they say I owe the IRS a lot of money. Is there any way out? Now, there are actually six policies resolutions so, we’re going to take this for a moment and talk about each of those six policies resolutions. The first thing inevitably that people want to talk about is something call an offer and comprise. An offer and compromise is actually a deal that’s all for les. The IRS made a big deal lately that they don’t want people advertising that you can sell for pennies on a dollar but it’s sometimes is possible. And offer and comprises is base product complex algebraic problem that goes something like these; monthly disposable income times 48 plus your assets equals the amount of your cash offer.
Now, there is something else called a short-term differed offer and a long term differed offer and I want to talk about those in a later video. The second possible solution is something called an installment agreement. What is an installment agreement? Well, it’s exactly what it sounds like. And installment agreement is nothing more than a payment plan. Now, there are payment plans installment agreements, they will full pay the liability and there are installment agreements that sometimes only partially paid the liability and that will be the subject of a later video as well.
The third solution is something that is very unique and a lot people don’t understand that. And that is that there is actually a collection statue of limitations for the collection of income tax liability. What people don’t understand is that the IRS only has 10 years form the day of the assessment of tax to collect the their tax. What is that mean, well in English it means, pretty much that the IRS has a limited time frame from which they can collect their tax. So, it is important that you know when that date started to run and more importantly when that date is actually expired. If the date is expired in the IRS cannot lawfully collect the tax and after release all liens, levies, etc.
The fourth option is actually something called hardship status, you might also hear us call it currently not collectable or status 53. Those things all mean at the IRS after doing the thorough financial analysis of your financial situation has determined that they have no liability to collect from you on a monthly basis. In other words, you cannot afford to pay anything on a monthly basis.
Is a hardship status a final solution? Not necessarily, it can be as a conjunction with the collection statue expiration day that we just talk about just a moment ago. But it’s not in at itself a solution, typically the IRS will put you on hardship status for a year or two at a time, and revisit your financial situation in a year or two, and determine that at that time whether or not you have any ability to pay on a monthly basis.
The fifth option is something even more unusual, lot of people really don’t get this and that is the bankruptcy can discharge taxes in circumstances. So, that is something that is very complex and it will also to be subject of the later video.
The six option is something called innocence spouse relief, an innocence spouse relief is also very complicated, there are actually three types of innocence spouse relief, and we’ll get to those in a later video as well. But typically, if your spouse did something that to calls a large tax liability that you are unaware of or that you have nothing to do it. In certain circumstances you can get relief by filling for innocence spouse relief.
Now, if you meet with an organization or individual who can out of those six possible solutions claim to taking go ahead and pick the magic pill and pick which solution is the best for you after this short conversation, I think you need to keep looking. Each of these solutions is complicated in and out of its self and requires a detail, a range of analysis before you can decide which of this solution is the best is for you.
Now, that’s all the time I have for this video, if you’d like to have access to the other 19 videos dealing with the resolution of the IRS problems. Please visit my website and GetIRSHelpVideos.com.
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