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 ExistsDoubt 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.