OFFER IN COMPROMISE
Submitting An Offer In Compromise -
In some accounts, the amount of accruing
penalties and interest is so large that the monthly payments
may never pay off the tax. An Offer in Compromise may be a
practical way for you to resolve your outstanding tax bill.
Under certain conditions the DE DOR will settle unpaid
accounts for less than the full amount of the balance due.
This applies to all tax types arising under the DE DOR
administration.
An Offer in Compromise
must be made in writing, addressed to the attention of
your account assignee, Delaware Division of Revenue, 820
N. French Street, Wilmington, Delaware 19801, requesting
a reduction in the penalty and interest on your account.
A collection information statement must
be completed and returned. This can be mailed to you or
obtained from The Delaware Division of Revenue web site.
All past tax returns must be filed with
DE DOR before an Offer would be considered.
Grounds For Filing An Offer In
Compromise - You can submit a letter for an
Offer in Compromise if it is made on one or both of the
following grounds:
(1) Doubt as to the liability
for the amount owed;
or
(2) Doubt as to your ability to fully pay the
amount owed. (If this is due to health reasons,
documentation from your physician should also be
submitted.)
Upon receipt of your letter, your
account is forwarded for calculation of a compromise
amount. Please allow 3 to 4 months. If you have
previously compromised with the Internal Revenue
Service, include a copy of that compromise acceptance
and documentation of the total due to the IRS before the
compromise. This will make a difference in the method
used to calculate the amount of the compromise.
Note: Submission of an Offer in
Compromise does not automatically stop collection action
on your account. If there is any indication that you
filed the offer simply to delay collection of the tax or
that the delay would interfere with collecting tax, we
will immediately continue our collection efforts.
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