New York Tax Lawyer

You are probably familiar with 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. 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 Offer in Compromise Program is designed to help consumers settle their debt with the IRS for less than what they actually owe. In other wards the taxpayer has a chance to appeal to the IRS for leniency for their tax debts. Ultimately the IRS will decide whether or not you can have a break. Generally the tax payer has to prove that they are either financially unable to make full payment on the debt or there is a possibility that they are not legally liable for the tax debt reported.

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. The IRS has 3 main offers that are available to individuals under the Offer in Compromise Program. The first offer is Doubt as to Liability.

Those who fall under this straightforward situation can legally prove that the tax debt does not belong to them. People who file for this offer dispute 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 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. The IRS feels that they will not be able to collect the full amount that they are seeking from taxpayers that fall under this offer group.

The IRS has taken into account your current situation as well as your financial standings and concluded that you will not be able to pay off the entire amount. 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 type of offer available in the program is Effective Tax Administration and it is the least accepted offer by the IRS.

After going over income statements some individuals 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.