Philadelphia Tax Attorneys

In most cases people are aware of the Internal Revenue Service or IRS and the importance of filing yearly taxes. If you fall in the category where you have not paid taxes for several years or have not paid out enough money you may owe a large amount to the IRS. In a lot of cases people are unable to pay the large amount that the IRS demands. Congress asked the IRS to design a special program, known as the Offer in Compromise that is designed to help people legally settle their debts.

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 you 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 is authorized to offer plans that benefit financially burdened taxpayers. 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. There are 3 main offers available under the Offer in Compromise Program. The first offer is called Doubt as to Liability.

Under this straightforward plan you must be able to prove that the tax debt is incorrect. Basically the taxpayer disputes the fact that they actually owe the money.

It is your responsibility to prove that you do not owe the money using documentation or other evidence. The Doubt as to Liability option is oftentimes simply offered to those who have suffered a case of mistaken identity or Identity Theft.

Doubt as to Collectability is the second type of offer and the most common. 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 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. 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 third and final plan is the Effective Tax Administration and it is the least accepted offer by the IRS.

In these types of cases taxpayers are able to pay off their tax debt but making them do so would cause financial problems.

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.