I was hit by a big IRS tax bill, and I filed (by myself) a “doubt as to collectability” claim under the Offer in Compromise program. My offer was rejected because the revenue officer said I neglected to mention my retirement account. What can I do?

This is one reason it is never a good idea to deal with the IRS yourself, rather than hiring an experienced tax lawyer. When you file a “doubt as to collectability” claim, you are telling the government you simply don’t have enough money to cover your tax debt, and they have no choice but to drastically reduce the size of your bill (or even, in rare cases, eliminate it entirely). This is, needless to say, a very bold statement, and the IRS will do everything in its power to prove you are not as “broke” as you may think.

The IRS may or may not be able to touch the contents of your retirement accounts; that’s something only a tax lawyer can tell you for sure. But, if you failed to divulge the existence of these accounts when making your “doubt as to collectability” claim, that was a foolish mistake. The IRS revenue officer may well wonder what other assets you neglected to mention in your claim, and you will have lost whatever small reservoir of trust that existed at the beginning of the audit process.

What’s more, even if you re-file your “doubt as to collectability” claim with more exhaustive documentation, you may not necessarily get a better result, since your agent already has put your dossier in the “dishonest” file.

What can you do in this situation? Well, a good first step is to hire an experienced Oklahoma tax expert from the law firm of Travis W. Watkins, PC. We may be able to resuscitate your “doubt as to collectability” claim and reduce the size of your tax bill. Call us today at 800-721-7054 to learn what we can do for you!