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 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. Congress instructed the IRS to come up with a special program, known as the Offer in Compromise, to help people legally settles their IRS debt.

The program is basically a way for consumers to settle their debt with the IRS for less than they owe. The tax payer appeals to the IRS for a break on their tax debts. The IRS has the final say so on whether the individual can have a break. It is the duty of the taxpayer to prove that they are unable financially to pay off the entire debt or that they are not legally liable for the debt.

The IRS does have plans that they can offer to taxpayers who are in a financial bind. 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. Under the Offer in Compromise Program taxpayers fall under 3 main offers or plans. The first offer is Doubt as to Liability.

The Doubt as to Liability offer is simple because the taxpayer must be able to prove that the tax debt is incorrect. Basically the taxpayer does not believe they 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.

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