New York Tax Lawyer

In most cases individuals are familiar with the IRS and the necessity of filing yearly taxes. It is important that you understand that if you do not pay your taxes for several years or you fail to pay enough taxes you may end up owing a substantial amount to the IRS. In many cases individuals are unable to pay the large amount the IRS demands. 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 was developed to assist consumers with settling their IRS debt for less than they actually owe. In other wards the taxpayer has a chance to appeal to the IRS for leniency for 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.

In these types of situations the IRS can legally offer taxpayers certain plans to help with the debt. 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 IRS offer is Doubt as to Liability.

This offer is simple to understand because if you fall under this offer you feel you can prove that the tax debt is incorrect. Basically you feel that you do not actually owe the money.

You must present evidence, such as with documentation, that you do not owe the money. This type of offer is not used often and is generally offered to those who are a victim of mistaken identity.

The second offer is referred to as Doubt as to Collectability and it is the most common type. Generally the IRS feels that the individuals under this offer will not be able to make full payment on their debt.

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. Under these circumstances the IRS will try to come up with a reasonable settlement by taking into account the total of amount of disposable income as well as assets the individual has. The third type of offer available in the program is Effective Tax Administration and it is the least accepted offer by the IRS.

In these types of cases taxpayers are able to pay off their tax debt but making them do so would cause financial problems.

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.