A doubt as to liability Offer in Compromise (OIC) can be used to settle tax debt when there is a legitimate dispute about whether you actually owe the debt. If accepted, you may use a Doubt as to Liability OIC to settle your tax debt for much less than owe, sometimes for pennies on the dollar.
The process of preparing a Doubt as to Liability OIC takes a lot of effort and knowledge of IRS practices, so consult a tax attorney for assistance.
When Doubt As To Liability Exists
Doubt as to liability generally exits when there is a dispute about the tax assessment that couldn’t be argued earlier for some reason. In other words, the time to dispute the tax liability has passed, but you have a good argument for disputing it.
Doubt as to liability may come up in the following situations:
- New evidence is found after a tax assessment.
- You were unaware of a tax assessment and never received notices from the IRS.
- The IRS audited your return and adjusted your tax liability, but you didn’t receive notices from the IRS.
- You filed an amended return, but it was never processed by the IRS.
- Errors made by employers on wage information returns or errors made by the IRS.
