New York Tax Advice

You are probably familiar with 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 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 program is basically a way for consumers to settle their debt with the IRS for less than they 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. The taxpayer is ultimately responsible for proving that they are financially unable to make full payment on the debt or there is a possibility that the debt reported does not belong to them.

The IRS may be able to set you up with a plan that helps you with your financial obligations. 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. There are 3 main offers available under the Offer in Compromise Program. The first offer is called 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 does not believe they owe the money.

It is your responsibility to prove that you do not owe the money using documentation or other evidence. This type of offer is not used often and is generally offered to those who are a victim of mistaken identity.

Doubt as to Collectability is the second type of offer and the most common. In other wards the IRS feels that they will never fully collect the amount that they are due from the taxpayer.

Basically this type of offer is for those situations where the IRS knows that they will probably not be able to collect their entire debt. In most cases after the IRS looks at your disposable income as assets they are able to come up with a reasonable settlement. 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.