When to Use an IRS “Doubt-As-To-Liability” Offer

You should use an IRS "Doubt-As-To-Liability" offer when you believe you don't owe the full tax amount. This could be due to receiving a notice of deficiency, discovering new info, or finding evidence that contradicts the IRS claims. You can also contest misapplications of tax law or insufficient documentation from the IRS. If any of these situations apply to you, there's a way to present your case effectively. There's more to explore on how to submit this offer.

Key Takeaways

• Use a DATL offer when you receive a notice of deficiency indicating the IRS may have made an assessment error.
• File for a DATL if you discover new information that contradicts the IRS's claims about your tax liability.
• Consider a DATL when you suspect a misapplication of tax law in your specific case.
• A DATL offer is appropriate if the IRS lacks sufficient documentation to support their claims against you.
• Submit a DATL when you have credible evidence that supports your position and reduces your tax liability.

Understanding the Doubt-As-To-Liability Offer

When you face a tax bill that seems overwhelming, the IRS offers a "Doubt-As-To-Liability" (DATL) option to help you challenge the amount owed. This provision allows you to contest the tax liability if you genuinely believe you don't owe the full amount. It's a way for you to present your case, showing evidence or arguments that support your position.

By filing a DATL offer, you can potentially reduce or eliminate the tax bill, providing relief from financial stress.

Situations That Warrant a Doubt-As-To-Liability Offer

Certain situations may justify filing a Doubt-As-To-Liability (DATL) offer, particularly if you believe the IRS has assessed your tax obligation incorrectly. If you've received a notice of deficiency, and you're confident there's a mistake in how your income or deductions were evaluated, a DATL offer can be a viable option.

Additionally, if you've uncovered new information that contradicts the IRS's claim, this might warrant a DATL submission.?It's also useful when you suspect that the tax law has been misapplied to your case.

Finally, if you can demonstrate that the IRS lacks sufficient documentation to support their claims, filing a DATL offer could help you contest their assessment effectively.

Steps to Submit a Doubt-As-To-Liability Offer

To submit a Doubt-As-To-Liability (DATL) offer, you'll first need to gather all relevant documentation that supports your claim. This evidence is crucial in demonstrating your position to the IRS.

Once we have everything, we complete the Form 656-L, ensuring all details are accurate. After that, we prepare a cover letter that explains your reasoning clearly.

When we speak to taxpayers who have unfortunately fallen into the IRS Collection Division and believe their hardship can be settled with a hardship letter and the IRS just goes away unfortunately that's not how it works. These individuals are confronted with the prospect of dealing with federal tax issues imposed by the (IRS) and not having a clear understanding of what the rules are and what's available to the taxpayer.

If you find yourself dealing with any tax-related issues in Orlando, Florida or anywhere in the Central Florida or for that matter anywhere in the USA we are a phone call away. call 407-531-8705

Here's what we include in your submission:

• Tax returns: Provide copies of your tax returns for the years in question.
• Supporting documents: Attach any documents that back up your claim, like bank statements or receipts.
• Payment: Include the required application fee, if applicable.

Finally, we send your completed package to the appropriate IRS address.

Conclusion

In conclusion, using a Doubt-As-To-Liability offer can be a smart move when you genuinely believe you owe less than the IRS claims. By understanding your situation, gathering the right documentation, and following the submission steps, we empower you to challenge perceived tax liabilities. Book a Free tax consultation here.?https://calendly.com/taxdebtreliefgroup/tax-debt-consultation

Peter Kici EA