Offer In Compromise of Tax Liability

Under certain circumstances the department may accept a taxpayer's offer to settle their tax liability for less than the full amount due. Taxpayers who meet the following qualifications may initiate the process by submitting the documentation listed below. The taxpayer bears the burden of establishing the grounds for a potential settlement and has no legal entitlement to have any tax liability settled through an Offer in Compromise (OIC).
Any submitted offer must reflect the taxpayer's maximum capacity to pay. The department reserves the right to conduct an independent examination of the taxpayer's financial condition in review of the documentation submitted to determine the veracity of the information contained therein. Any previously initiated collection activity will continue while a submitted offer is being considered. The state may rescind any acceptance of an offer if the taxpayer fails to comply with the required terms and conditions, if additional information becomes available or if the information provided by the taxpayer is found to be false.