Dallas Tax Lawyer

In most cases people are aware of the Internal Revenue Service or IRS and the importance 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 mandate, the IRS has established a special program known as the Offer in Compromise that is designed to legally settle their debt.

The program is basically a way for consumers to settle their debt with the IRS for less than they 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 they will issue 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.

In these types of situations the IRS can legally offer taxpayers certain plans to help with the debt. Oftentimes the offer that you get is less than the amount that you actually owe but the final amount is calculated using a method designed by the IRS> There are 3 main offers available under the Offer in Compromise Program. The first IRS offer is Doubt as to Liability.

Under this straightforward plan you must be able to prove that the tax debt is incorrect. In other wards the individual disputes the fact that they actually 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 IRS offer is Doubt as to Collectability and it is considered 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 regardless of the circumstances or the individual's financial situation the IRS concludes that the tax payer will not be able to pay the entire amount due. Generally the IRS will offer you are reasonable settlement after they take into account your disposable income and assets. The third type of offer available in the program is Effective Tax Administration and it is the least accepted offer 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.