Skip to main content

What is Offer in Compromise?

An offer in compromise is a proposal, by the taxpayer, to pay less than the full amount due to the Michigan Department of Treasury.  If accepted the offer in compromise settles the tax debt for less than the full amount due, based on the program criteria established by MCL 205.23a.  The opportunity for an offer in compromise is limited to only the following situations:

(a)  An offer in compromise was granted by the Internal Revenue Service for federal taxes for the same tax year/tax period and tax types

(b)  A doubt exists as to liability

(c)  A doubt exists as to collectability