San Francisco IRS Tax Help

In most cases individuals are familiar with the IRS and the necessity 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. It is not uncommon for taxpayers to be able to pay the large IRS debt. In response to Congress demands the IRS came up with a special program known as the Offer in Compromise that is designed to help people legally settle their debt.

This particular program is a legal way for taxpayers to settle their IRS debt 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 duty of the taxpayer to prove that they are unable financially to pay off the entire debt or that they are not legally liable for the debt.

The IRS may be able to set you up with a plan that helps you with your financial obligations. 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. Doubt as to Liability is the first offer.

The Doubt as to Liability offer is simple because the taxpayer 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. This type of offer is not used often and is generally offered to those who are a victim of mistaken identity.

Doubt as to Collectability is the second offer and is considered 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.

In other wards no matter the circumstances or the individual's future financial situation the IRS concludes that they will not be able to pay the entire amount. In most cases after the IRS looks at your disposable income as assets they are able to come up with a reasonable settlement. The least accepted offer by the IRS and final offer available to taxpayers is the Effective Tax Administration.

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.