The Offer in Compromise program is a voluntary program that is offered to certain taxpayers who are delinquent in their taxes. There are three types of offers, including this one. The other two types are an Offer in Compromise based on uncollectibility and an Offer in Compromise based on Effective Tax Administration. There is no filing fee for the Offer based on doubt as to liability..  As the name implies, you state to the IRS that you do not think you owe the tax.  However, you must convince the service of that!  One situation where this approach works is if the tax was assessed more than ten (10) years ago.  If the tax hasn’t been collected within ten years, it will be written off.  Of course, there are several events that can toll  (i.e. stop the statute from running) the statute for a period of time.  Examples are if you file bankruptcy or file an Offer In Compromise.   You do not have to submit any financial information with this Offer; however, you do have to give a detailed explanation why you are not liable for the tax and submit supporting documentation to prove you are right.  However, you must still offer to pay some amount.  This is because there is always an uncertainty whether or not a tax court judge would find the taxpayer liable for the tax.  Therefore, both you and the IRS are “gambling” on the outcome and both must be willing to compromise to obtain a sure result.