What if the IRS tries to collect taxes you do not owe.
- September 23, 2015
- David Greene
- Comments Off on What if the IRS tries to collect taxes you do not owe.
If you receive collection letters stating that you owe taxes for years that you do not think you owe, you need to proceed under the approach to compromising tax liability known as the “Doubt As To Liability” doctrine. As the name implies, you must convince the IRS of your non-liability! This is usually done through negotiations with a local Revenue Officer or an Offer in Compromise. Some situations where this approach works are: (1) if the tax was assessed more than ten (10) years ago. If the tax hasn’t been collected within ten years, the IRS cannot force you to pay the tax. However this time can be extended by events such as bankruptcy or filing an Offer In Compromise. (2) If your employer files a W-2 or 1099 form with the wrong information. (3) If the IRS seeks to impose the Trust Fund penalty on an employee of a corporation. Each case will be assessed on an individual basis.