New York IRS Tax Attorney

In most cases individuals are familiar with the IRS and the necessity of filing yearly taxes. However if people fail to pay taxes for several years or do not pay enough taxes the amount of debt that they owe the IRS may be substantial. Oftentimes people are not able to pay off their large IRS debt. 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 helps taxpayers 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.

The IRS is authorized to offer plans that benefit financially burdened taxpayers. Generally the offer is less than what you really owe but is it important to note that the final amount is calculated using an IRS calculation method. Individuals have 3 main offers to choose from under the Offer in Compromise Program. 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. Basically you feel that you do not actually owe the money.

The IRS insists that you present evidence to show that you do not owe the money in question. Those individuals who have found themselves a victim of mistaken identity or Identity Theft are generally offered the Doubt as to Liability plan.

Doubt as to Collectability is the second offer and is considered the most common. Basically the IRS has come to the conclusion that no matter how much time they get the individual will not be able to pay the full amount due.

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. Effective Tax Administration is the final and least offered plan by the IRS.

After going over income statements some individuals 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.