Los Angeles Tax Attorney

You are probably familiar with the Internal Revenue Service or IRS and the importance of filing yearly taxes. It is important that you understand that if you do not pay your taxes for several years or you fail to pay enough taxes you may end up owing a substantial amount to the IRS. It is not uncommon for taxpayers to be able to pay the large IRS debt. 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. In other wards the taxpayer has a chance to appeal to the IRS for leniency for their tax debts. The IRS makes the final decision on whether they will issue a break. Generally the tax payer has to prove that they are either financially unable to make full payment on the debt or there is a possibility that they are not legally liable for the tax 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. Individuals have 3 main offers to choose from under the Offer in Compromise Program. The first offer is called 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. In other wards the individual 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 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. Generally the IRS feels that the individuals under this offer will not be able to make full payment on their debt.

Basically regardless of the circumstances or the individual's financial situation the IRS concludes that the tax payer will not be able to pay the entire amount due. 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.

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.