"Doubt as to liability" is a term used in tax law to refer to a situation where a taxpayer has good reason to dispute whether they actually owe a tax liability. In other words, the taxpayer is sure they are not liable for paying certain taxes.
In such cases, the taxpayer can request relief through the IRS's Doubt as to Liability (DAL) process. This process allows the taxpayer to provide evidence or arguments to the IRS to demonstrate why they are not liable for the taxes in question.
If the IRS agrees with the taxpayer's arguments, it may reduce or eliminate the amount of taxes owed. However, it's important to note that the IRS will only grant relief through the DAL process if the taxpayer can provide clear and convincing evidence that they are not actually liable for the taxes in question.
When preparing a Doubt as to liability offer, it is essential to remember that:
- You cannot offer the IRS nothing, even if you can prove you don't owe the tax. You must offer something, even if it is $1.00.
- You cannot receive a refund.
If you or someone you know is dealing with an IRS nightmare and needs help, contact me at 702-469-9426 or candy@numbercruncherllc.tax.
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