Offers In Compromise
Taxpayers may be eligible for an Offer in Compromise if they owe more tax than they can pay. However, not everyone qualifies for an Offer in Compromise. To determine eligibility, taxpayers must ask these questions:
- Do I receive Social Security income, Social Security disability, pension payments or public assistance?
- Am I over age 60?
- Are my total assets worth less than I owe?
- Have I had a significant reduction in income?
- Is my tax debt older than seven years?
- Are my tax returns in full filing compliance?
- Are my licenses current?
- Is the business that I was a principal member of defunct and closed?
Taxpayers who answer yes to two or more questions may be eligible for an Offer in Compromise.
When you sign and submit an offer, you agree to the waiver and suspension of any statutory periods of limitations for assessment and collections of the tax liability while the offer-in-compromise is pending, during the time the offered amount remains unpaid and for one (1) year after the satisfaction of the terms of the offer-in-compromise.
Contact us for more information or fill out the Offer In Compromise Statement of Offer.
APPLICATION FOR AN OFFER IN COMPROMISE
Checklist for required information
Please include with your Statement of Offer and financial statements any of the following which apply. The department will review all information.
- Signed Statement of Offer.
- Completed Collection Information Statements (financial statement business - Form 10847) and attachments.
- A copy of your last federal tax return.
- A copy of your IRS Offer-in-Compromise agreement.
- All bank statements 90 days prior to close of operations for all bank accounts held.
- Copies of credit card statements for last 90 days for all credit cards held.
