Dallas IRS Tax Help

Most people are probably familiar with the Internal Revenue Service or the IRS and the importance 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 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 Offer in Compromise Program was developed to assist consumers with settling their IRS debt for less than they actually owe. In other wards the taxpayer has a chance to appeal to the IRS for leniency for their tax debts. Ultimately the IRS will decide whether or not you can have a break. 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.

Under these circumstances the IRS can offer plans that benefit financially burdened tax payers. 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. Doubt as to Liability is the first offer.

Under this straightforward plan you must be able to prove that the tax debt is incorrect. People who file for this offer dispute that they actually owe the money.

It is the responsibility of the taxpayer to prove that they do not owe the money. This offer is not commonly used and is commonly used in cases of mistaken identity or Identity Theft.

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. 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. The third type of offer available in the program is Effective Tax Administration and it is the least accepted offer by the IRS.

Some people may be able to afford to pay their tax debt but making them do so might seem 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.