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Los Angeles, CA: The Holy Grail of Tax Settlement Part 4 – OIC DATL
An Offer in Compromise Doubt as to Liability (OIC DATL) is filed by a taxpayer that does not agree to some or all of the amount of a tax assessed by the IRS. 
This is in contrast to an Offer in Compromise Doubt as to Collectibility (OIC DATC) that I wrote about in a previous post where the tax assessment is accepted as accurate by the taxpayer who does not have the financial means to pay the tax debt in full.
 
Benefits of an Offer in Compromise Doubt as to Liability (OIC DATL) include:
1. If an OIC DATL is accepted, it can wipe out part or the total tax liability.
2. Stops collection enforcement (bank levies, wage garnishments, etc.) during the offer review. 
3. Taxpayer does not have to disclose financial information because they are asserting that they do not owe part or all of the tax.
4. Do not have to calculate Reasonable Collection Potential (RCP) as opposed to an Offer in Compromise Doubt as to Collectibility (OIC DATC).
5. Can offer only $1 to settle the debt or the partial amount of debt the taxpayer thinks they owe.
 
If there has been a court decision related to the tax assessment an Offer in Compromise Doubt as to ... more

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