San Francisco Tax Lawyer

Most people are probably familiar with the Internal Revenue Service or the IRS and the importance of filing yearly taxes. In cases where people do not pay their taxes for several years or do not pay enough taxes they may owe the IRS a substantial amount. Many times individuals are unable to pay their large IRS debt. The IRS has come up with a special program known as the Offer in Compromise that is designed to help people settle their IRS debt.

The Offer in Compromise Program was developed to assist consumers with settling their IRS debt for less than they actually owe. The tax payer appeals to the IRS for a break on their tax debts. The IRS has the final say so on whether the individual can have a break. In most cases the taxpayer has to prove that they are financially unable to pay off their debt or they are not legally responsible for the tax debt reported.

The IRS does have plans that they can offer to taxpayers who are in a financial bind. Most people will find that the offered amount is less than what they actually owe but the final settlement amount is based on an IRS calculation. The IRS has 3 main offers that are available to individuals under the Offer in Compromise Program. The first offer is called Doubt as to Liability.

This offer is fairly straightforward because in this situation the tax payer is able to demonstrate that the tax debt is actually incorrect. Basically the taxpayer does not believe they owe the money.

You must present evidence, such as with documentation, that you do not owe the money. This offer is not commonly used and is commonly used in cases of mistaken identity or Identity Theft.

The second offer is referred to as Doubt as to Collectability and it is the most common type. Taxpayers who are eligible for this option have showcased to the IRS that they will not be able to pay their IRS debt in full.

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. In most cases after the IRS looks at your disposable income as assets they are able to come up with a reasonable settlement. Effective Tax Administration is the final and least offered plan by the IRS.

Some taxpayers based on their income can afford to pay their tax debt but making them do so might be 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.