Philadelphia Tax Attorney

Most people are probably familiar with the Internal Revenue Service or the IRS and the importance of filing yearly taxes. If you fail to pay taxes for several years or do not pay enough taxes you may owe the IRS a substantial amount. Many times individuals are unable to pay their large IRS debt. Congress asked the IRS to design a special program, known as the Offer in Compromise that is designed to help people legally settle their debts.

The program is basically a way for consumers to settle their debt with the IRS for less than they owe. The taxpayer gets a chance to formally appeal to the IRS for leniency on their tax debts. The IRS has the final say so on whether the individual can have a break. In most cases the taxpayer has to prove that they are financially unable to pay off their debt or they are not legally responsible for the tax debt reported.

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 they consider is Doubt as to Liability.

This offer is simple to understand because if you fall under this offer you feel you can prove that the tax debt is incorrect. People who file for this offer dispute that they actually owe the money.

It is your responsibility to prove that you do not owe the money using documentation or other evidence. This type of offer is not used often and is generally offered to those who are a victim of mistaken identity.

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.

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. The IRS will generally try to come up with a reasonable settlement amount by going over your disposable income as well as your assets. Effective Tax Administration is the final and least offered plan 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.