Philadelphia IRS Attorney

You are probably familiar with the Internal Revenue Service or IRS and the importance of filing yearly taxes. It is important that you understand that if you do not pay your taxes for several years or you fail to pay enough taxes you may end up owing a substantial amount to the IRS. In a lot of cases people are unable to pay the large amount that the IRS demands. Congress asked the IRS to design a special program, known as the Offer in Compromise that is designed to help people legally settle their debts.

This particular program is a legal way for taxpayers to settle their IRS debt for less than what they actually owe. In other wards the taxpayer has a chance to appeal to the IRS for leniency for their tax debts. The IRS has the final say so on whether the individual can have a break. In most cases the taxpayer has to prove that they are financially unable to pay off their debt or they are not legally responsible for the tax debt reported.

In these types of situations the IRS can legally offer taxpayers certain plans to help with the debt. 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.

Under this straightforward plan you must be able to prove that the tax debt is incorrect. Basically the taxpayer does not believe they 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. 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 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 Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

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.