Dallas IRS Tax Relief

In most cases people are aware of the Internal Revenue Service or IRS and the importance of filing yearly taxes. However if people fail to pay taxes for several years or do not pay enough taxes the amount of debt that they owe the IRS may be substantial. Oftentimes people are not able to pay off 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 tax payer appeals to the IRS for a break on their tax debts. Ultimately the IRS will decide whether or not 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.

The IRS is authorized to offer plans that benefit financially burdened taxpayers. 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. The IRS has 3 main offers that are available to individuals under the Offer in Compromise Program. Doubt as to Liability is the first offer.

This offer is simple to understand because if you fall under this offer you feel you can prove that the tax debt is incorrect. In other wards the individual disputes the fact that they actually owe the money.

You are responsible for presenting evidence such as documents that prove 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.

Doubt as to Collectability is the second offer and is considered the most common. The IRS feels that they will not be able to collect the full amount that they are seeking from taxpayers that fall under this offer group.

The IRS has concluded that regardless of your circumstances or your financial situation you will not be able to pay off the entire debt. 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 least accepted offer by the IRS and final offer available to taxpayers is the Effective Tax Administration.

In some cases taxpayers appear to be able to pay off their debts but making them do so would 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.