San Francisco Tax Resolution

Generally individuals are familiar with the Internal Revenue Service of the IRS and the important 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 demands the IRS came up with a special program known as the Offer in Compromise that is designed to help people legally settle their debt.

The Offer in Compromise Program helps taxpayers settle their IRS debt for less than what they actually owe. You get a chance to formally appeal to the IRS for leniency on your tax debts. The decision of whether or not a tax payer will get leniency is decided by the IRS. 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.

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 that are available to individuals under the Offer in Compromise Program. 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 the taxpayer 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. This type of offer is not used often and is generally offered to those who are a victim of mistaken identity.

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.

Basically regardless of the circumstances or the individual's financial situation the IRS concludes that the tax payer will not be able to pay the entire amount due. After taking into account your disposable income as well as your assets the IRS is generally able to come up with a reasonable settlement. Effective Tax Administration is the final and least offered plan by the IRS.

Some taxpayers based on their income 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.