San Francisco IRS Tax Attorney
In most cases people are aware of 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. Many times individuals are unable to pay their 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 was developed to assist consumers with settling their IRS debt for less than they actually owe. Basically the tax payer will appeal to the IRS for leniency on their tax debts. Ultimately the IRS will decide whether or not you can have 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. Oftentimes the offer that you get is less than the amount that you actually owe but the final amount is calculated using a method designed by the IRS> Individuals have 3 main offers to choose from under the Offer in Compromise Program. The first offer is Doubt as to Liability.
Those who fall under this straightforward situation can legally prove that the tax debt does not belong to them. In other wards the individual disputes the fact that they actually owe the money.
It is the responsibility of the taxpayer to prove that they do not owe the money. The Doubt as to Liability option is oftentimes simply offered to those who have suffered a case of mistaken identity or Identity Theft.
The second offer, Doubt as to Collectability, is the second and most common offer. 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. After taking into account your disposable income as well as your assets the IRS is generally able to come up with a reasonable settlement. The third and final plan is the Effective Tax Administration and it is the least accepted offer by the IRS.
In some cases taxpayers appear to be able to pay off their debts but making them do so would 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.
Filed under Offer in Compromise by on Dec 29th, 2011.
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