Chicago Tax Attorney

In most cases people are aware of the Internal Revenue Service or IRS and the importance of filing yearly taxes. If you fall in the category where you have not paid taxes for several years or have not paid out enough money you may owe a large amount to the IRS. Oftentimes people are not able to pay off 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 Offer in Compromise Program is designed to help consumers settle their debt with the IRS for less than what they actually owe. Basically the tax payer will 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.

The IRS does have plans that they can offer to taxpayers who are in a financial bind. In the majority of the cases the IRS offer is less than what you actually owe but the final amount that you have to pay is calculated by an IRS method. 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 fairly straightforward because in this situation the tax payer is able to demonstrate that the tax debt is actually 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.

Doubt as to Collectability is the second offer and is considered the most common. Generally the IRS feels that the individuals under this offer will not be able to make full payment on their debt.

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. Generally the IRS will offer you are reasonable settlement after they take into account your disposable income and assets. The least accepted offer by the IRS and final offer available to taxpayers is the Effective Tax Administration.

In these types of cases taxpayers are able to pay off their tax debt but making them do so would cause financial problems.

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.