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Are all taxpayers eligible to submit an offer in compromise?

At the time a taxpayer submits an offer in compromise to Treasury, all of the following must be true:

  • The taxpayer must have been assessed for the tax debts specified in the offer in compromise application.

  • All opportunities for the taxpayer to appeal the assessed tax debt at informal conference, Michigan Tax Tribunal or the Court of Claims, must have expired.

  • The taxpayer must have filed returns for all applicable taxes for all outstanding tax years.

  • The taxpayer must have no open bankruptcy proceedings

Note: For Doubt as to Liability a final decision or judgment from the Michigan Tax Tribunal or a Court must have not been established