Dallas IRS 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 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 Offer in Compromise Program is designed to help consumers settle their debt with the IRS for less than what they actually owe. The tax payer appeals to the IRS for a break on their tax debts. The decision of whether or not a tax payer will get leniency is decided by the IRS. It is the duty of the taxpayer to prove that they are unable financially to pay off the entire debt or that they are not legally liable for the debt.

The IRS does have plans that they can offer to taxpayers who are in a financial bind. 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. There are 3 main offers available 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. Basically the taxpayer does not believe they owe the money.

You must present evidence, such as with documentation, that you do not owe the money. Those individuals who have found themselves a victim of mistaken identity or Identity Theft are generally offered the Doubt as to Liability plan.

The second IRS offer is Doubt as to Collectability and it is considered 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.

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. Under these circumstances the IRS will try to come up with a reasonable settlement by taking into account the total of amount of disposable income as well as assets the individual has. The third and final plan is the Effective Tax Administration and it is the least accepted offer by the IRS.

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.