Philadelphia IRS Tax Relief

You are probably familiar with the Internal Revenue Service or IRS and the importance 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. It is not uncommon for taxpayers to be able to pay the 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 helps taxpayers settle their IRS debt for less than what they actually owe. Basically the tax payer will appeal to the IRS for leniency on their tax debts. The IRS makes the final decision on whether you 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.

Under these circumstances the IRS can offer plans that benefit financially burdened tax payers. 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. 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. People who file for this offer dispute that they actually owe the money.

The IRS insists that you present evidence to show that you do not owe the money in question. This offer is not commonly used and is commonly used in cases of mistaken identity or Identity Theft.

The second offer, Doubt as to Collectability, is the second and most common offer. 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.

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. 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 least accepted offer by the IRS and final offer available to taxpayers is the Effective Tax Administration.

Some taxpayers based on their income 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.