Doubt as to Collectibility (DATC)
This applies when the taxpayer agrees they owe the tax, but can’t afford to pay it in full — now or in the foreseeable future.
Examples:
- The taxpayer’s assets and income are insufficient to cover the liability.
- Paying the full amount would cause economic hardship.
Form used: Form 656
Requires a Collection Information Statement (Form 433-A (OIC) or 433-B (OIC)) to prove inability to pay.