Philadelphia IRS Tax Relief

Generally individuals are familiar with the Internal Revenue Service of the IRS and the important of filing yearly taxes. In cases where people do not pay their taxes for several years or do not pay enough taxes they may owe the IRS a substantial amount. Oftentimes people are not able to pay off their large IRS debt. The IRS has come up with a special program known as the Offer in Compromise that is designed to help people settle their IRS debt.

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 makes the final decision on whether they will issue 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 may be able to set you up with a plan that helps you with your financial obligations. 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. Under the Offer in Compromise Program taxpayers fall under 3 main offers or plans. The first offer 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. Basically you feel that you do not actually owe the money.

You must present evidence, such as with documentation, that you do not owe the money. The Doubt as to Liability offer is not commonly used and is generally offered in cases of mistaken identity such as Identity Theft.

Doubt as to Collectability is the second type of offer and the most common. Basically the IRS has come to the conclusion that no matter how much time they get the individual will not be able to pay the full amount due.

In other wards no matter the circumstances or the individual's future financial situation the IRS concludes that they will not be able to pay 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. The Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

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.