New York IRS Help

You are probably familiar with the Internal Revenue Service or IRS and the importance of filing yearly taxes. If you fail to pay taxes for several years or do not pay enough taxes you may owe the IRS a substantial amount. 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. Basically the tax payer will appeal to the IRS for leniency on their tax debts. The IRS makes the final decision on whether they will issue a break. It is the taxpayer's responsibility to either prove they are unable to pay off the entire debt or prove they are not legally liable for the debt reported.

The IRS does have plans that they can offer to taxpayers who are in a financial bind. Most people will find that the offered amount is less than what they actually owe but the final settlement amount is based on an IRS calculation. The IRS has 3 main offers that are available to individuals under the Offer in Compromise Program. The first offer is Doubt as to Liability.

The Doubt as to Liability offer is simple because the taxpayer 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 taken into account your current situation as well as your financial standings and concluded that you will not be able to pay off the entire amount. After taking into account your disposable income as well as your assets the IRS is generally able to come up with a reasonable settlement. The third and final plan is the Effective Tax Administration and it is the least accepted offer by the IRS.

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.