Taxes IconOffer In Compromise

  • An Offer in Compromise is a request by a taxpayer for the Michigan Department of Treasury to compromise an assessed tax liability for less than the full amount. An assessed tax liability includes tax and any related interest and penalty. The Michigan Department of Treasury Offer in Compromise program is established pursuant to Public Act (PA) 240 of 2014, which amended the Revenue Act, PA 122 of 1941.

  • Guidelines

    The Guidelines generally describe the State of Michigan's Offer in Compromise program, including when a taxpayer may be eligible to participate in the program, the process by which Treasury will evaluate a taxpayer's offer, and what a taxpayer may expect with respect to any acceptance or rejection by Treasury of the taxpayer's offer.

  • Forms and Instructions

    Forms and instructions used to submit a Michigan Department of Treasury Offer in Compromise and forms and instructions for requesting an independent administrative review.

  • Frequently Asked Questions PDF icon

    A list of the most frequently asked questions and answers related to Offer in Compromise.

  • Reporting Requirements

    Reports of each accepted Offer in Compromise as required by Revenue Act MCL 205.23a (2)

  • Related Links

    IRS Offer in Compromise
    Revenue Act MCL 205.23a
    Michigan Legislative Website

  • What Do I Need To Know?

    Michigan Department of Treasury is providing an Offer in Compromise program beginning January 1, 2015. This program allows taxpayers to submit an offer to compromise a tax debt for less than the amount due based on these specific criteria:

    1. A doubt as to the liability based on evidence provided by the taxpayer.
    2. A doubt exists as to the collectability of the tax due based on the taxpayer's financial condition.
    3. A federal offer in compromise has been given for the same tax year(s).