Philadelphia IRS Tax Attorney

In most cases individuals are familiar with the IRS and the necessity 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. Oftentimes people are not able to pay off their 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. The tax payer appeals to the IRS for a break on their tax debts. The IRS makes the final decision on whether they will issue 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.

In these types of situations the IRS can legally offer taxpayers certain plans to help with the debt. 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. Individuals have 3 main offers to choose from under the Offer in Compromise Program. The first offer is called 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 the taxpayer does not believe they owe the money.

It is the responsibility of the taxpayer to prove that they do not owe the money. 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 type of offer and the most common. In other wards the IRS feels that they will never fully collect the amount that they are due from the taxpayer.

Basically this type of offer is for those situations where the IRS knows that they will probably not be able to collect their 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 least accepted offer by the IRS and final offer available to taxpayers is the Effective Tax Administration.

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.