Offer 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.

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

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

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

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

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).