Philadelphia IRS Tax Relief

In most cases individuals are familiar with the IRS and the necessity of filing yearly taxes. If you fail to pay taxes for several years or do not pay enough taxes you may owe the IRS a substantial amount. Many times individuals are unable to pay their large IRS debt. In response to Congress demands the IRS came up with a special program known as the Offer in Compromise that is designed to help people legally settle their debt.

The Offer in Compromise Program helps taxpayers settle their IRS debt for less than what they actually owe. The taxpayer gets a chance to formally appeal to the IRS for leniency on their tax debts. The IRS makes the final decision on whether you can have a break. It is the taxpayer's responsibility to either prove they are unable to pay off the entire debt or prove they are not legally liable for the debt reported.

The IRS may be able to set you up with a plan that helps you with your financial obligations. Generally the offer is less than what you really owe but is it important to note that the final amount is calculated using an IRS calculation method. Under the Offer in Compromise Program taxpayers fall under 3 main offers or plans. Doubt as to Liability is the first offer.

This offer is fairly straightforward because in this situation the tax payer is able to demonstrate that the tax debt is actually incorrect. In other wards the individual disputes the fact that they actually owe the money.

It is the responsibility of the taxpayer to prove that they do not owe the money. The Doubt as to Liability offer is not commonly used and is generally offered in cases of mistaken identity such as Identity Theft.

Doubt as to Collectability is the second type of offer and the most common. Basically the IRS has come to the conclusion that no matter how much time they get the individual will not be able to pay the full amount due.

Basically this type of offer is for those situations where the IRS knows that they will probably not be able to collect their entire debt. After taking into account your disposable income as well as your assets the IRS is generally able to come up with a reasonable settlement. The least accepted offer by the IRS and final offer available to taxpayers is the Effective Tax Administration.

Some people may be able to afford to pay their tax debt but making them do so might seem unfair.

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 benefits clients tremendously. He may be reached by calling toll free (888) 438-6474.