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:: Washington Offer In Compromise
Appeals Guide
Is it possible to settle with the Department?
Yes. The Department can settle tax disputes when
appropriate.
When will the Department consider settlement?
The Department will consider settling if one or more of the
following criteria are met:
-
the issue is nonrecurring
-
there is conflict between a statute, rule, or
written instructions to the taxpayer
-
a strict application of the law would have harsh
consequences
-
there is uncertainty to the outcome of the decision
if it were presented in a court of law
When will the Department not consider settlement?
The Department will not consider settlement if:
-
the same issue is being litigated by the
Department.
-
you challenge a long-standing department policy or
rule.
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you present issues where relief cannot be given
(such as to reduce the cost and inconvenience of litigation).
-
you argue that a statute is unconstitutional.
What if I want to settle because I cannot afford to pay?
The Appeals Division will not consider settlements where
the only reason is your inability to pay. In such cases, you should contact
the Department?s Compliance Division about a payment plan or other
resolution based on financial hardship.
How do I propose settlement?
At any time you may submit a written proposal to the
Administrative Law Judge (ALJ) handling your appeal. In your proposal,
state:
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the amount in dispute.
-
why your case should be settled.
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the amount you are offering in settlement.
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why the amount you are offering is reasonable. (A
reasonable compromise offer is more likely to be accepted.)
What happens once I propose settlement?
In most cases, the ALJ will send your proposal through a
review process within the Department.
-
On larger dollar cases, your offer may need to be
reviewed by a designee of the Director, which may include the
Assistant Director, Deputy Director, or a manager in the Appeals
division.
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For small claims cases, the ALJ as a designee of
the Director, may accept an offer without further review.
-
In some cases, the Department will make a
counter-offer.
What happens after a settlement agreement?
Once a settlement is made, a ?closing agreement? is
prepared by the ALJ. Both you and the Department must sign the agreement
before the case is settled. Oral agreements are not valid or enforceable.
Washington – Offer
in Compromise Forms
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