Doubt as to Liability (“I don’t owe the IRS what they say I owe them.”) – An Offer in Compromise based upon Doubt as to Liability is used where the amount the IRS is seeking to collect is incorrect. A taxpayer does not need to disclose his or her financial condition to the IRS with this type of Offer.
Case study: IRS Claims Taxpayer Owes Incorrect Amount of TaxesThe IRS was trying to collect a liability from our taxpayer that was far in excess of what the true tax liability should have been. Before our taxpayer hired us, she “sat on her rights” and lost several opportunities to show the IRS that the liability they were seeking to assess was incorrect. After the taxpayer hired us, we tried several avenues to persuade the IRS that the liability they were seeking was incorrect. We then filed an Offer in Compromise with the IRS based upon Doubt as to Liability. The IRS finally agreed that the liability they were attempting to collect was incorrect and adjusted the tax liability to what the taxpayer should have paid in the first place. Our taxpayer is no longer wrestling with the IRS as to the amount of her liability and has moved forward with her life knowing that her IRS debt is now a correct and manageable amount.
The IRS Trouble Solvers have had tremendous success in obtaining IRS Offers in Compromise for taxpayers since its inception in 1991. When he was an attorney for the IRS, Mr. Sheehan said yes or no to every single Offer in Compromise at the IRS District Counsel level. Mr. Sheehan left the IRS in 1991 to represent taxpayers. Since that time, most of our Offers in Compromise have been accepted by the IRS.