Los Angeles Tax Help

Generally individuals are familiar with the Internal Revenue Service of the IRS and the important 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. 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 program is basically a way for consumers to settle their debt with the IRS for less than they 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.

The IRS is authorized to offer plans that benefit financially burdened taxpayers. Oftentimes the offer that you get is less than the amount that you actually owe but the final 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.

This offer is fairly straightforward because in this situation the tax payer is able to demonstrate that the tax debt is actually incorrect. In other wards the individual disputes the fact that they actually owe the money.

You must present evidence, such as with documentation, that 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.

Doubt as to Collectability is the second offer and is considered the most common. Taxpayers who are eligible for this option have showcased to the IRS that they will not be able to pay their IRS debt in full.

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. Generally the IRS will offer you are reasonable settlement after they take into account your disposable income and assets. The Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

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.