Dallas IRS Attorney

In most cases people are aware of 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. It is not uncommon for taxpayers to be able to pay the large IRS debt. In response to Congress mandate, the IRS has established a special program known as the Offer in Compromise that is designed to legally settle their debt.

The Offer in Compromise Program is designed to help consumers settle their debt with the IRS for less than what they actually owe. The tax payer appeals to the IRS for a break on their tax debts. The IRS makes the final decision on whether they will issue a break. 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.

Under these circumstances the IRS can offer plans that benefit financially burdened tax payers. Oftentimes the offer that you get is less than the amount that you actually owe but the final amount is calculated using a method designed by the IRS> There are 3 main offers available 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.

The IRS insists that you present evidence to show that you do not owe the money in question. This offer is not commonly used and is commonly used in cases of mistaken identity or Identity Theft.

The second IRS offer is Doubt as to Collectability and it is considered the most common. The IRS feels that they will not be able to collect the full amount that they are seeking from taxpayers that fall under this offer group.

The IRS has concluded that regardless of your circumstances or your financial situation you will not be able to pay off the entire debt. Under these circumstances the IRS will try to come up with a reasonable settlement by taking into account the total of amount of disposable income as well as assets the individual has. The third type of offer available in the program is Effective Tax Administration and it is the least accepted offer 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.