San Francisco Tax Attorneys

In most cases individuals are familiar with the IRS and the necessity of filing yearly taxes. If you fall in the category where you have not paid taxes for several years or have not paid out enough money you may owe a large amount to the IRS. Oftentimes people are not able to pay off their 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.

This particular program is a legal way for taxpayers to settle their IRS debt for less than what they actually 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. In most cases the taxpayer has to prove that they are financially unable to pay off their debt or they are not legally responsible for the tax debt reported.

The IRS does have plans that they can offer to taxpayers who are in a financial bind. 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. The IRS has 3 main offers for tax payers under its Offer in Compromise Program. The first offer is called Doubt as to Liability.

This offer is fairly straightforward because in this situation the tax payer is able to demonstrate that the tax debt is actually incorrect. People who file for this offer dispute that they actually owe the money.

It is the responsibility of the taxpayer to prove that they do not owe the money. 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. 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.

In other wards no matter the circumstances or the individual's future financial situation the IRS concludes that they will not be able to pay the entire amount. Generally the IRS will offer you are reasonable settlement after they take into account your disposable income and assets. The third and final plan is the Effective Tax Administration and it is the least accepted offer by the IRS.

Some people may be able to afford to pay their tax debt but making them do so might seem 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.