What to do if you don’t really owe the IRS

Services for Real Estate Pros with Backoffice Squared

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS can assess taxes through its many audit programs. Many of these programs are automated to an extent that no human was involved in the process. Inevitably, this leads to situations where the taxpayer has little understanding of why he or she owes taxes. There are two main options to fixing this situation.

You can request an Audit Reconsideration by filing Form 12661 and including all of the documents that were not considered in the original audit process. To qualify for this process, you must still owe the money and have not signed any agreements acknowledging that you owed the tax.

Your second option is to make an Offer-in-Compromise based on the “Doubt as to Liability”. This is done with Form 656-L and is an offer to settle the liability for an amount that is less than the assessment. Again, this won’t work if you have already agreed that you owe the money.

The Offer-in-Compromise approach would typically be used if you never received an audit notice and the IRS subsequently disallowed all your expenses or the IRS assessed the Trust Funds penalty on you even though you were not a responsible person. The big advantage of the Offer-in-Compromise approach over the Audit Reconsideration is that you can make a low offer, say $10, and if accepted the balance of the debt is written off.

 If you or someone you know has received a Notice of Intent to Levy or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email jim@backoffice2.net.


Jim Payne, CPA


Gainesville, FL

Cell (352) 317-5692

Office (352) 376-9401

Fax (352) 376-9440




This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Local News and Events
trust funds
tax representation
audit reconsideration
audit reassessment
doubt as to liability

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Jim Payne, CPA

CPA firm practicing in the area of IRS Collections
Ask me a question
Spam prevention