Once your debt has become final or during an appeal process, the Offer in Compromise (OIC) program may be the solution for you if:
- It has been determined it is unlikely the tax liability can be collected in full within a reasonable time frame;
- You do not believe you owe the amount due; or
- Repayment in full will create an economic hardship.
If your Offer in Compromise Agreement is accepted, you will have the opportunity to settle your debt for less than your current balance due if the program requirements have been met.
There are several situations where the Offer in Compromise program may not be appropriate. Some of those situations include, but are not limited to:
- You collected but failed to forward taxes held in trust for the state
- You have a history of non-compliance
- You have been granted a compromise within the past five years
- You have the financial and economical means to repay a valid debt.
Offer in Compromise forms include:
Additional information about the Offer in Compromise program is available in our technical guide.