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Reasons for the offer Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayers assets and income are less than the full amount of the tax liability.
Doubt as to liability exists where there is a genuine dispute as to the existence or amount of the correct tax debt under the law. If you have a legitimate doubt that you owe part or all of the tax debt, you will need to complete a Form 656-L, Offer in Compromise (Doubt as to Liability).
Doubt as to Liability occurs when the taxpayer feels they do not owe the debt. The taxpayer must include an explanation as to why they feel they do not owe all or part of the tax and supply any supporting documentation.
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