Completing Form 5181CI

List you and your spouse’s occupation. If you or your spouse are self-employed fill out parts 10 - 12.

Determine an offer amount by:

1. identifying the total amount of debt owed;
2. deciding the most you can afford to offer;
3. calculating the initial payment of 20% of the total offer amount, or $100, whichever is greater; then
4. subtracting the initial payment from the remaining offer balance, this is the remaining balance you will select payment terms for.

Determine the payment terms (how you will pay the remaining balance if the offer gets accepted by Treasury) by selecting one of the following:

• a lump sum payment amount with the balance paid in full in 30 days;
• equal, periodic payments with the balance paid in full within 5 months; or
• an installment plan with monthly installments between 6 to 24 months.

NOTES

• A state tax lien will be placed if you select to pay within 6 - 24 months.
• Submission of an OIC does not suspend interest or penalties from accruing on the outstanding tax amount.

Explain where the funds will be coming from to pay your offer. Be specific. For example, family or friends, a bank loan, withdrawing from or liquidating an IRA or 401K, etc.

Read through the rest of the application, informing you of the offer’s terms and conditions, then sign the application.

Submit all application materials to:

Michigan Department of Treasury
Offer in Compromise
P.O. Box 30190
Lansing, MI 48909

You are not able to fax or e-file the OIC application at this time.

If multiple OIC reasons (doubt as to liability, doubt as to collectability, accepted OIC by the IRS) apply to your debt, you must submit separate applications with all required forms.

Treasury will notify you in writing when your submission is received, either acknowledging that it is eligible for further review or notifying you of the reason(s) it is ineligible.

List all assets, including a spouse’s assets, and include each asset's most current statement.

List all income for anyone who contributes to household resources, including adult children.

Review the Treasury Collection Financial Standards for Individuals to complete your Doubt as to Collectability application.

Complete these sections if you or your spouse are self-employed.

You will identify the business and its financial condition, as well as list all assets and liabilities for the business. The most current statement for each asset listed for the business (accounts, mortgages, assets) must be attached and submitted with your doubt as to collectability application.