San Francisco Tax Problem

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. In response to Congress mandate, the IRS has established a special program known as the Offer in Compromise that is designed to legally settle their debt.

The Offer in Compromise Program was developed to assist consumers with settling their IRS debt for less than they actually 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 you can have a break. Generally the tax payer has to prove that they are either financially unable to make full payment on the debt or there is a possibility that they are not legally liable for the tax debt reported.

In these types of situations the IRS can legally offer taxpayers certain plans to help with the debt. Generally the offer is less than what you really owe but is it important to note that the final amount is calculated using an IRS calculation method. The IRS has 3 main offers for tax payers under its Offer in Compromise Program. The first offer 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.

You must present evidence, such as with documentation, that you do not owe the money. This offer is not commonly used and is commonly used in cases of mistaken identity or Identity Theft.

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.

The IRS has concluded that regardless of your circumstances or your financial situation you will not be able to pay off the 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.

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.