Chicago IRS Attorney

Most people are probably familiar with the Internal Revenue Service or the 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 many cases individuals are unable to pay the large amount 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.

The Offer in Compromise Program helps taxpayers settle their IRS debt for less than what they actually owe. The taxpayer gets a chance to formally appeal to the IRS for leniency on their tax debts. Ultimately the IRS will decide whether or not you 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.

The IRS is authorized to offer plans that benefit financially burdened taxpayers. In most cases the offer is less than the amount that is actually owed but the final settlement amount is calculated using a method designed by the IRS. Under the Offer in Compromise Program taxpayers fall under 3 main offers or plans. The first offer is called Doubt as to Liability.

Under this straightforward plan you must be able to prove that the tax debt is incorrect. Basically the taxpayer disputes the fact that they actually owe the money.

It is your responsibility to prove that you do not owe the money using documentation or other evidence. Those individuals who have found themselves a victim of mistaken identity or Identity Theft are generally offered the Doubt as to Liability plan.

The second offer, Doubt as to Collectability, is the second and most common offer. Generally the IRS feels that the individuals under this offer will not be able to make full payment on their debt.

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.

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.