Offer in Compromise - Doubt as to LIABILITY - when is this procedure used?

Most talk of the Offer in Compromise procedure is related to DOUBT AS TO COLLECTABILITY or OIC - DAC-- when someone cannot afford to pay the IRS is full. The rarer form of Offer is: the "Doubt as to liability" Offer - OIC - DAL. When is it used?

Filing an OIC - DAL is like telling the IRS to AUDIT you - when you think an audit will actually help you. In one example, the IRS may have filed substitute for returns for you, but you missed the deadline to replace them. OR, say you were audited previously but NOT given a fair audit? You could say filing an OIC - DAL is like going to Tax Court WITHOUT actually going to Court.

OIC - DAL is a rare procedure indeed, but it has its place.

Please call me at 1-866-525-7302 to see if an Offer in Compromise -- Doubt as to Liability is the right procedure for your situation. Jay Freeborne, Enrolled Agent