Philadelphia IRS Tax Relief

Generally individuals are familiar with the Internal Revenue Service of the IRS and the important of filing yearly taxes. However if people fail to pay taxes for several years or do not pay enough taxes the amount of debt that they owe the IRS may be substantial. Oftentimes people are not able to pay off 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 Offer in Compromise Program is designed to help consumers settle their debt with the IRS for less than what they actually owe. You get a chance to formally appeal to the IRS for leniency on your tax debts. The IRS has the final say so on whether the individual 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.

The IRS is authorized to offer plans that benefit financially burdened taxpayers. Generally the offer is less than what you really owe but is it important to note that the final amount is calculated using an IRS calculation method. Individuals have 3 main offers to choose from under the Offer in Compromise Program. The first offer they consider is Doubt as to Liability.

The Doubt as to Liability offer is simple because the taxpayer must be able to prove that the tax debt is incorrect. Basically you feel that you do not 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.

The second offer, Doubt as to Collectability, is the second and most common offer. In other wards the IRS feels that they will never fully collect the amount that they are due from the taxpayer.

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. Generally the IRS will offer you are reasonable settlement after they take into account your disposable income and assets. The Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

In some cases taxpayers appear to be able to pay off their debts but making them do so would 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.