The Offer in Compromise Program is used to resolve tax liabilities with the Comptroller when the taxpayer is unable to pay in full and all other efforts to resolve the liability have been unsuccessful. This program can be used for all taxes administered by the Comptroller including the Admissions and Amusement Tax, Income Tax, Sales and Use Tax and Withholding Tax.
The Offer in Compromise Program is not an appeal of the taxpayer's liability. Instead, under the program we look at your available resources, consider the resources in the light of your circumstances, and arrive at an equitable resolution of your liability by considering a reduction or abatement of the amount due.
In order to apply for this program you must meet the following eligibility requirements:
- You have incurred a delinquent tax liability that has resulted in an assessment.
- You have exhausted all other avenues of administrative appeal.
- You cannot make an offer in compromise if there is any issue remaining that can be appealed.
- Two years must have passed since you became liable for the tax.
- You must be current with respect to all returns filed or required to be filed to the Comptroller's Office.
- You must not be currently involved in an open bankruptcy proceeding.
- You are unlikely to be able to make payment in full any time in the foreseeable future due to your financial situation.
- You either are without resources or unable to apply present and/or future resources to paying the outstanding tax liability.
Comptroller's Procedures for Offers in Compromise
All decisions under the Offer in Compromise Program are final and cannot be appealed. For this reason you should carefully consider the facts and arguments you submit with the original offer.
You must remain current with respect to future filings for at least three years after the Offer in Compromise is accepted. If you do not, the full liability will become due immediately, and the Comptroller will take all necessary action to collect.
We will review the Offer in Compromise and determine if there is sufficient reason for a reduction or abatement of the amount due.
If we determine that no grounds for adjustment exist, then you will be notified that your offer has been declined. The Comptroller's Office will consider another offer in compromise if circumstances change.
If we determine that grounds for adjustment exist but that the amount offered is insufficient, you will be advised as to an acceptable amount. If we determine that your offer is acceptable, you will be notified so payment can be made.
For additional information, see Business Tax Tip 58-Offer in Compromise and the Forms and Instructions.
For more information about the Offer in Compromise Program, e-mail us at email@example.com or call 410-767-1557 from Central Maryland or 1-888-674-0020 from elsewhere.