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Offer in Compromise Doubt as to Collectibility

Most people who owe back taxes have heard the term ‘offer in compromise’
In fact there are three different types of Offer in Compromise.
The one most common is referred to as offer in compromise doubt as to collectibility. There is a lot of information about this type of offer on my website. In summary it is an effective tool if you cannot pay the full amount Of the tax that you owe. Most of my clients obtain a settlement with the IRS under this type Of offer,

But what do you do if you don’t qualify for the above type of offer. Another option is known as offer in compromise with doubt as to liability. In this type of situation you have to be able to make a good-faith argument you are not responsible for all or a portion of the tax. Some examples of this are when there is confusion about the taxpayers name or for example when Junior is assessed a tax bill That really belongs to senior.

Another example maybe when you have been improperly assessed a payroll tax obligation. There are many possibilities but the guideline is can you make a good-faith argument you are not responsible For the tax?

There is also a third type of offer which is known as “effective tax administration”. This is a catchall category which is really based on “fairness”

I explain this in more detail in other blog entries and videos