Letter from IRS

I live in Vermont and about 3 years ago took out my retirement fund, but didn't pay taxes. I submitted an offer in compromise to the IRS, but they wrote me a letter stating that I didn't owe any taxes. Can this letter be used in a court of law if they try to come after me later? Thank you.

It can be used as evidence that you were not attempting tax evasion or fraud; however, if it is incorrect, they could still come after the tax.

Another point is that depending on the type of retirement fund you had, it may not be taxable when you take it out. For example, a nonqualified plan. So ask your employer about the taxablility.