New York Income Tax Help

You are probably familiar with the Internal Revenue Service or IRS and the importance of filing yearly taxes. In cases where people do not pay their taxes for several years or do not pay enough taxes they may owe the IRS a substantial amount. Oftentimes people are not able to pay off their large IRS debt. 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.

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. The IRS has the final say so on whether the individual can have a break. 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.

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. There are 3 main offers available under the Offer in Compromise Program. Doubt as to Liability is the first offer.

Those who fall under this straightforward situation can legally prove that the tax debt does not belong to them. Basically the taxpayer disputes the fact that they actually owe the money.

It is the responsibility of the taxpayer to prove that they do not owe the money. The Doubt as to Liability offer is not commonly used and is generally offered in cases of mistaken identity such as Identity Theft.

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.

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. Generally the IRS will offer you are reasonable settlement after they take into account your disposable income and assets. The Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

After going over income statements some individuals 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.