Georgia –Offers in Compromise

SALT Report 1544 – The Georgia Department of Revenue has updated and reissued its booklet regarding offers in compromise.  Offers in compromise are agreements between a taxpayer and the government in which the taxpayer is allowed to settle a tax liability for less than the full amount owed.  The department will generally accept an offer in compromise when it is not likely that a tax liability will be fully collected and when the amount offered is reasonable.
Eligibility
Each of the following statements must be “True” in order for the Department to process your request:
  • You have filed all required tax returns and reports,
  • You have received a final notice of assessment for all Georgia state taxes that you owe, and
  • You are not the subject of an open or active bankruptcy case
Submitting an Offer
  • You must file all tax returns that you were legally required to file prior to submitting the offer
  • All estimated payments must be paid to date for the current year
  • If your basis for compromise is due to a disputed liability, you must include a computation of the adjusted tax amount, an explanation of how you arrived at the amount, and any verifying documentation
The Department provides two different methods to submit an offer:
  • If the offer concerns an individual income tax liability of less than $25,000, Forms OIC-1S Offer in Compromise – Short Form and CD-14A Collection Information Statement must be submitted, or
  • For all other offers, Forms OIC-1 and CD-14B Statement of Financial Condition for Businesses and/or CD-14C Statement of Financial Condition for Wage Earners of Self-Employed must be completed and signed with all appropriate identification numbers.  Items that do not apply to you should be marked with “N/A”
The Department will notify you by mail if the offer is accepted.  All payments must be made within 60 days from date of the acceptance letter, unless otherwise noted.
For Further Information: