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

Once an offer in compromise has been received, it is considered eligible or ineligible.

Eligible: Collection action, including telephone calls, garnishment and levies, and tax due notices will stop once your submission becomes pending and throughout the review process. Note that penalty and interest will still accrue while your submission is pending.  Your submission becomes pending when Treasury receives the required Form 5181, along with required schedules and documentation, and the required initial payment of $100 or 20% of the offer, whichever is greater. Treasury will notify you in writing when your submission is received.

 

Ineligible: Treasury will notify you in writing and collection action will continue. You may be eligible to submit a new offer. Please visit www.michigan.gov/oic to review the Guidelines for Offer in Compromise Program for more information on the eligibility requirements for submitting an offer in compromise and the requirements for review of an offer in compromise.