New York IRS Tax Relief

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. Many times individuals are unable to pay their large IRS debt. In response to Congress demands the IRS came up with a special program known as the Offer in Compromise that is designed to help people legally settle their debt.

The Offer in Compromise Program helps taxpayers 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 has the final say so on whether the individual can have a break. It is the taxpayer's responsibility to either prove they are unable to pay off the entire debt or prove they are not legally liable for the debt reported.

The IRS is authorized to offer plans that benefit financially burdened taxpayers. 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. There are 3 main offers available under the Offer in Compromise Program. Doubt as to Liability is the first offer.

This offer is simple to understand because if you fall under this offer you feel you can prove that the tax debt is incorrect. Basically the taxpayer disputes the fact that they actually owe the money.

It is the responsibility of the taxpayer to prove that they 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.

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.

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. In most cases after the IRS looks at your disposable income as assets they are able to come up with a reasonable settlement. The third type of offer available in the program is Effective Tax Administration and it is the least accepted offer 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.