Chicago Tax Attorneys

Most people are probably familiar with the Internal Revenue Service or the 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. 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.

The program is basically a way for consumers to settle their debt with the IRS for less than they owe. The tax payer appeals to the IRS for a break on their tax debts. The IRS makes the final decision on whether they will issue a break. In most cases the taxpayer has to prove that they are financially unable to pay off their debt or they are not legally responsible for the tax debt reported.

The IRS may be able to set you up with a plan that helps you with your financial obligations. Most people will find that the offered amount is less than what they actually owe but the final settlement amount is based on an IRS calculation. There are 3 main offers available under the Offer in Compromise Program. The first offer is called Doubt as to Liability.

Those who fall under this straightforward situation can legally prove that the tax debt does not belong to them. Basically the taxpayer disputes the fact that they actually owe the money.

You are responsible for presenting evidence such as documents that prove you do not owe the money. 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 offer and is considered the most common. In other wards the IRS feels that they will never fully collect the amount that they are due from the taxpayer.

The IRS has concluded that regardless of your circumstances or your financial situation you will not be able to pay off the entire debt. Generally the IRS will offer you are reasonable settlement after they take into account your disposable income and assets. The third and final plan is the Effective Tax Administration and it is the least accepted offer by the IRS.

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.