Fort Worth 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. 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. Basically the tax payer will appeal to the IRS for leniency on their tax debts. The IRS has the final say so on whether the individual can have a break. The taxpayer is ultimately responsible for proving that they are financially unable to make full payment on the debt or there is a possibility that the debt reported does not belong to them.

In these types of situations the IRS can legally offer taxpayers certain plans to help with the debt. In most cases the offer is less than the amount that is actually owed but the final settlement amount is calculated using a method designed by the IRS. Under the Offer in Compromise Program taxpayers fall under 3 main offers or plans. The first offer they consider is 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.

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.

The second offer, Doubt as to Collectability, is the second and most common offer. 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. The IRS will generally try to come up with a reasonable settlement amount by going over your disposable income as well as your 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 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.