Chicago Tax Attorneys

In most cases individuals are familiar with the IRS and the necessity 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. In many cases individuals are unable to pay the large amount the IRS demands. The IRS has come up with a special program known as the Offer in Compromise that is designed to help people settle their IRS 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. The decision of whether or not a tax payer will get leniency is decided by the IRS. 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. The IRS has 3 main offers for tax payers under its Offer in Compromise Program. The first offer is Doubt as to Liability.

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.

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 type of offer and the most common. The IRS feels that they will not be able to collect the full amount that they are seeking from taxpayers that fall under this offer group.

The IRS has taken into account your current situation as well as your financial standings and concluded that you will not be able to pay off 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 third type of offer available in the program is Effective Tax Administration and it is the least accepted offer by the IRS.

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.