Offer In Compromise Frequently Asked Questions

Note: Failure to submit a completed application, including supporting documentation may delay the processing of the application.

General Information
Can a corporate officer apply for an offer in compromise?

Where do I submit a complete offer in compromise application and the initial offer payment?

What is Offer in Compromise?

What is the definition of "Receipt of a Federal Offer in Compromise"?

Can a successor apply for an offer in compromise?

I have a state tax lien on my property. Will this be released when I submit my offer in compromise?

Where do I find my assessment information?

Are all offers in compromise reviewed?

Will I have to make payments on my current installment agreement while my offer is being considered?

Can a business participate in the offer in compromise program?

Will I receive formal notification advising me that the Treasury has received my offer in compromise submission?

What happens if the Michigan Department of Treasury determines that my offer is too low?

Are all taxpayers eligible to submit an offer in compromise?

What is the definition of "Doubt as to Liability"?

What is the definition of "Doubt as to Collectability"?

What taxes qualify for an offer in compromise?

Can I e-file or fax my offer in compromise application?

Will penalty and interest continue to accrue after I've submitted my application?

If my offer in compromise application is rejected can I reapply?

Can I file missing tax returns at the same time as my offer in compromise?

What happens if my offer in compromise is submitted using the wrong forms?

Will Treasury stop collection action once my offer in compromise application has been received?

What forms of payment are accepted for the initial offer payment?

Will I receive formal notification of the acceptance or rejection of the offer in compromise?

If I forget to list an assessment will it be compromised?
Payment Information
If my offer in compromise is accepted and the accepted offer is in the form of a periodic payment or installment plan, can I make my installment payments electronically?
If my offer in compromise is accepted, can I have my payments automatically deducted from my bank account?
What forms of payment are accepted for the initial offer payment?
If my offer in compromise is accepted, what are the payment term options available to pay the compromised balance?
Will I have to make payments on my current installment agreement while my offer is being considered?
Will the state accept a personal check for the initial offer payment?
Will my initial offer payment be refunded if my application is rejected?
Doubt as to Collectability - Business
What taxes qualify for an offer in compromise based on Doubt as to Collectability?
What is the definition of "Doubt as to Collectability"?
If my offer in compromise is accepted, what are the payment term options available to pay the compromised balance?
Doubt as to Collectability - Individual
What is the definition of "Doubt as to Collectability"?
What taxes qualify for an offer in compromise based on Doubt as to Collectability?
If my offer in compromise is accepted, what are the payment term options available to pay the compromised balance?
What is the definition of "total household resources"?
What are the Michigan Department of Treasury Financial Standards, how are they used for an offer in compromise and where can they be found?
Federal (based on receipt of a Federal Offer in Compromise)
What is the definition of "Receipt of a Federal Offer in Compromise"?
What taxes qualify for an offer in compromise based on receipt of an Offer in Compromise from the Internal Revenue Service?
I received a letter from the Michigan Department of Treasury requesting my Federal Account Transcripts, what does that mean and where can I obtain them?
If my offer in compromise is accepted, what are the payment term options available to pay the compromised balance?
Doubt as to Liability
What is the definition of "Doubt as to Liability"?
If my offer in compromise is accepted, what are the payment term options available to pay the compromised balance?
What taxes qualify for an offer in compromise based on Doubt as to Liability?
Acceptance of an Offer in Compromise
If my offer in compromise is accepted, will the initial offer payment be applied towards the accepted offer balance?
If my offer in compromise is accepted, can I have my payments automatically deducted from my bank account?
If my offer in compromise application is accepted, will my state tax lien on my property be released?
What happens if I have received an accepted offer in compromise but I do not file my tax return or pay my taxes next year?
If my offer in compromise is accepted, what are the payment term options available to pay the compromised balance?
If my offer in compromise is accepted, and the accepted offer is in the form of a periodic payment or installment plan, can I make my installment payments electronically?
Will I receive formal notification of the acceptance of the offer in compromise?
Will the offsets of my income tax refund stop once my offer in compromise is accepted?
Will the offsets of my State of Michigan vendor payments stop once my offer in compromise is accepted?
Rejection or Ineligibility of an Offer in Compromise
If Treasury considers my offer in compromise application ineligible, can I appeal to the Court of Claims, Tax Tribunal or request an Independent Administrative Review?
Will my initial offer payment be refunded if my application is rejected?
If Treasury rejects my offer in compromise application, can I appeal to the Court of Claims or Tax Tribunal?
If my offer in compromise was rejected or considered ineligible and I want to reapply, do I have to send in a new initial offer payment?
Will I receive formal notification of the rejection or ineligibility of the offer in compromise?
Why was my application considered ineligible?
If my offer in compromise application is rejected or considered ineligible can I reapply?
Revocation of an Offer in Compromise
Why did I receive a Pre-Revoke notice?
If I receive a new assessment(s) on my account, what will happen?
What does it mean if my offer in compromise is revoked?
What happens if I do not make my payment by the due date or I miss my payment all together?
Independent Administrative Review
What is the purpose of form 5186 titled, "Request for Independent Administrative Review of Rejected Offer in Compromise?"
When I apply for an Independent Administrative Review, do I resubmit my application and new payment?
When I apply for an Independent Administrative Review, can I include corrections to amend my original application?
What documentation is considered during an Independent Administrative Review?
My original offer application was rejected because I did not include the minimum $100 or 20% of my offer (whichever is the greater amount). Can I submit a request for an Independent Administrative Review and include the correct payment amount?
Can I send in a new application with form 5181 even after my original offer in compromise is rejected by Treasury personnel?

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Offer In Compromise Frequently Asked Questions