Chicago Tax Attorneys

Generally individuals are familiar with the Internal Revenue Service of the IRS and the important of filing yearly taxes. In cases where people do not pay their taxes for several years or do not pay enough taxes they may owe the IRS a substantial amount. Oftentimes people are not able to pay off 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. The taxpayer gets a chance to formally appeal to the IRS for leniency on their tax debts. Ultimately the IRS will decide whether or not you can have 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.

The IRS is authorized to offer plans that benefit financially burdened taxpayers. In the majority of the cases the IRS offer is less than what you actually owe but the final amount that you have to pay is calculated by an IRS method. Individuals have 3 main offers to choose from under the Offer in Compromise Program. Doubt as to Liability is the first offer.

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.

The IRS insists that you present evidence to show that you do not owe the money in question. Those individuals who have found themselves a victim of mistaken identity or Identity Theft are generally offered the Doubt as to Liability plan.

Doubt as to Collectability is the second offer and 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. 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 Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

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.