Offer in Compromise
Please be advised of the following
policy changes to the Offer in Compromise Program effective July
1, 2005:
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Any payment submitted with an offer will be
applied as a partial payment to the tax debt. The payment
will not be refunded if the offer is declined or withdrawn.
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Payment of an accepted offer must be made
within 30 days of notification of acceptance.
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Statutory collection activity will not be
suspended while an offer is pending.
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Taxpayers are restricted to one offer
application only in a 10 year period.
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Taxpayers must remain in compliance for
filing and paying any required state tax return for ten
years following offer acceptance.
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Only applications with a revision date of
7/05 or later will be accepted after 9/1/2005.
Notice: $100 Processing Fee Required as
of July 1, 2005
Effective July 1, 2005, a processing fee of
$100 must accompany all Offer in Compromise applications
submitted on Form OIC-1. The application fee does not apply
to individuals whose income falls at or below levels based
on poverty guidelines established by the U.S. Department of
Health and Human Services (HHS) under authority of section
673(2) of the Omnibus Reconciliation Act of 1981 (95 Stat.
357, 511). The exception for taxpayers with incomes below
these levels only applies to individuals; it does not apply
to other entities such as corporations, proprietorships or
partnerships.
Your offer must include the $100
application fee or a completed Form OIC-11 (Income
Certification of Offer in Compromise Application Fee), if
you are requesting an exception of the fee because of your
income. Offers received without the $100 fee or a completed
OIC-11 will not be accepted for processing. Any payment over
and above the $100 fee made with the offer will be applied
as a partial payment to the applicant’s tax liability
regardless of the disposition of the offer. The application
fee is nonrefundable and will be credited to the tax debt
only if the offer is accepted. The application fee will not
be credited to the tax debt if the offer is declined.
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Form OIC-1 Offer in Compromise
Application (rev. 7/05)
(PDF File
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Form OIC-1
Instructions (rev. 7/05) (PDF
File)
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Form OIC-11 Offer in
Compromise Application Fee Waiver Request (Rev 7/05) (PDF File)
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Form OIC-11 WKS Application
Fee Worksheet (Rev 7/05) (PDF File)
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Offer in Compromise Application Fee
Information Sheet (Rev 7/05) (PDF File)
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Form CD LO-14B Statement of
Financial Condition for Individuals (rev. 3/04) (PDF File)
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Form CD LO-14C Statement of
Financial Condition for Businesses (rev. 3/04) (PDF File)
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