Dallas IRS Attorney

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.

The Offer in Compromise Program helps taxpayers settle their IRS debt for less than what they actually owe. The tax payer appeals to the IRS for a break on their tax debts. The decision of whether or not a tax payer will get leniency is decided by the IRS. 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.

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. Under the Offer in Compromise Program taxpayers fall under 3 main offers or plans. The first offer is Doubt as to Liability.

This offer is fairly straightforward because in this situation the tax payer is able to demonstrate that the tax debt is actually incorrect. People who file for this offer dispute that they actually owe the money.

It is your responsibility to prove that you do not owe the money using documentation or other evidence. The Doubt as to Liability option is oftentimes simply offered to those who have suffered a case of mistaken identity or Identity Theft.

Doubt as to Collectability is the second type of offer and 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.

The IRS has concluded that regardless of your circumstances or your financial situation you will not be able to pay off the entire debt. 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 Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

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.