If you have been hit with an enormous back tax bill by the IRS, your first recourse may be to say you simply don’t have the money. There are a variety of different ways you can phrase this sentiment: “I’m flat broke,” “my ex-wife took it all,” “I can’t even pay my mortgage, how can I pay you?” But, technically, it is known as a “doubt as to collectability” claim under the IRS’ Offer in Compromise program.

The trouble is, when an Oklahoma taxpayer says “I’m flat broke,” that’s not usually what he means. Sure, his savings account may be down to the double digits, but he still owns a car and house; or, he may have sold his car and house to make ends meet, and has a reasonably healthy balance in his savings account to cover day-to-day expenses. It’s very rare for an individual to have absolutely no money or assets to speak of, which is why the IRS will be extremely skeptical about that person’s “doubt as to collectability” claim.

As any tax lawyer will tell you, the most you can expect from this strategy is for your IRS revenue officer to marginally (or, in rare cases, drastically) slash the amount of taxes you owe to the government. This is not an easy battle to win; the IRS will ask to look into every corner of your financial life, and probably will interview your family members, your co-workers, and even your acquaintances to make sure you are every bit as “broke” as you claim to be.

In order to make your “doubt as to collectability” claim stick, you need to enlist the aid of an experienced tax lawyer. Contact the Oklahoma tax experts at Travis W. Watkins, PC (800-721-7054) to find out what we can do for you!

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