Indiana State Offer In Compromise Overview & Details

Indiana’s Department of Revenue has a division called the Taxpayer Advocate Office (TAO). This office handles the Offer in Compromise program. The Offer in Compromise program provides taxpayers with the ability to settle their tax liabilities with the DOR for an amount less than what they owe. The financial condition of the taxpayer and their tax situation determine eligibility. In other words, if a taxpayer can pay in full, then they likely will not qualify. The Department of Revenue states that the taxpayer’s total taxes owed and their earnings potential are all factors in determining whether an offer is reasonable.

Eligibility Requirements

Indiana’s DOR provides three possible examples of taxpayers who may qualify for an Offer In Compromise:

• If the taxpayer encountered personal devastation due to a natural disaster or an economic event beyond their control
• If the taxpayer currently suffers from a significant sickness or an immediate family member does
• The taxpayer presently faces financial hardship or has financial problems

How to Apply for an Indiana OIC

Taxpayers who wish to file an Offer in Compromise must do so by filing Form FS-OIC, including all required attachments.  Alternatively, taxpayers can submit a copy of an IRS Offer in Compromise application along with supporting documentation. Moreover, if the taxpayer had an OIC approved by the IRS, they can submit the IRS OIC application with the required documentation. They will also need to send proof they had an IRS liability at the time they filed the OIC with the IRS and the letter of approval from the IRS.

Collections Halted Once You Apply?

The DOR will not suspend collection activities while DOR evaluates an Offer in Compromise application. The Indiana Department of Revenue will keep any levy proceeds before an Offer in Compromise acceptance. The DOR will not release any professional license, tax liens, or permits until the taxpayer pays the full offer amount for any accepted OIC. Once the DOR places a lien on a taxpayer's vehicle, they can't sell it. 

OIC Requirements

The first requirement that taxpayers should ensure they meet before beginning the application is that they are current on all tax return filings. The DOR will automatically deny the OIC application if a taxpayer is currently delinquent on any individual or business tax filings. Moreover, the taxpayer cannot be in bankruptcy. In other words, all bankruptcy filings must be discharged or dismissed already.

Next, taxpayers must ensure that they attach all supporting documentation that is requested to be filed with Form FS-OIC. The list of these documents, if applicable to the taxpayer, is detailed on the Form FS-OIC. The DOR will automatically reject an application that is submitted without all of the required supporting documentation. Examples of accepted documents are:

• Income-related documents: paystubs, profit and loss statements, government benefit letters, pension statements, and bank statements
• Expense-related documents: utility statements, credit card or loan statements, car payment bills, medical bills, etc.
• Account-related documents: bank statements, retirement statements, investment statements, etc.

Lastly, the DOR requires that taxpayers attach a statement explaining their specific circumstances that resulted in the inability to pay the taxes. The DOR calls this a Letter of Circumstance. This letter should include all pertinent facts that were the result of the liability becoming assessed including:

• the reasons or extenuating circumstances preventing the full payment or the ability to pay monthly, such as financial hardships or medical diagnosis or treatments
• and how the taxpayer intends to pay the settlement offer (if accepted).

Where to Mail Your OIC Application & Documents

The DOR and the TAO state that they will review OIC applications within 15 to 20 days. They ask that taxpayers send completed applications to:

Office of the Taxpayer Advocate
Indiana Department of Revenue
P.O. Box 6155
Indianapolis, IN 46206-6155

The Offer Amount

The Taxpayer Advocate Office (TAO) will consider whether the offer amount made by the taxpayer is reasonable and in the best interest of the State. Again, the TAO will evaluate if the offer is the largest possible the taxpayer can put forth or by which can be collected realistically.

If the DOR Accepts the Offer

If Indiana’s DOR accepts the offer, the taxpayer must sign a “legal and binding Offer in Compromise Agreement.” Furthermore, the DOR will generally expect the taxpayer to pay the agreed-upon settlement amount in full within 60 days. However, in some circumstances, a payment plan will be authorized by the TAO. If a payment plan is allowed, the taxpayer will be required to make a 20% down payment. Once DOR accepts the Offer in Compromise, it is contingent on the taxpayer filing all tax returns and paying all taxes that become due in a timely fashion moving forward. If a taxpayer fails to do this, then the DOR will cancel the settlement agreement. Moreover,  it will reassess the original taxes owed, including back penalties, interest, and fees.

If a taxpayer does not qualify for an Offer in Compromise, the taxpayer or their representative can consider other tax resolution options. Above all, it is essential to work with a licensed tax professional when considering the Offer in Compromise option as the paperwork and process can be cumbersome. When in doubt, work with a licensed tax professional that has experience in resolving tax problems with Indiana's DOR.  You can find a list here, or you can start your search below. 

Disclaimer: The content on this website is for educational purposes only and does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.

Overview of Indiana’s State Tax Payment Plan

Unable to pay an Indiana state tax bill in full? Just like the Internal Revenue Service, Indiana’s Department of Revenue (DOR) offers taxpayers who cannot pay their state taxes in full the ability to pay it off over time. Generally, taxpayers who qualify with the DOR’s guidelines can pay their taxes off over a series of monthly payments. We discuss details below such as payment plan durations, requirements, and other considerations.

Payment Plan Durations

Individual Payment Plan

Indiana’s DOR offers payment plan durations that vary based on the amount the taxpayer owes. Below you will find a breakdown of how durations change depending on the tax balance. Keep in mind before the Covid-19 crisis, Indiana’s DOR allowed payment plans from 12-36 months generally and the taxpayer had to have a balance over $100. However, because of the Covid-19 pandemic, they have relaxed the general guidelines whereby under special circumstances taxpayers can obtain payment plans if they owe under $100 dollars up to 4 months. Moreover, they extended the payment plan durations based on the tax balance up to 60 months. The chart below gives some details.

Indiana Individual Income Tax Payment Plan Duration By Tax Balance

If a taxpayer owes less than $100 and wants a payment plan, they will have to call the DOR directly at 317-232-2165

Business Tax Payment Plan

Businesses can also set up tax payment plans with Indiana’s DOR. Just like individual tax payment plans, the amount owed generally determines the duration of the tax payment plan.

Indiana Business Tax Payment Plan Duration By Tax Balance

Penalties Associated With Payment Plans

Indiana’s DOR will still assess a 10% percent penalty on the unpaid balance during the life of the payment plan. Furthermore, they will tack on interest as well. Therefore, if a taxpayer can pay off the entire balance in full without setting up a payment plan, this can result in the avoidance of interest and penalties. Taxpayers can also reduce penalties and interest by paying more than their minimum monthly payment amount (if they can).  Taxpayers need to weigh all options including receiving a personal loan from a bank, refinancing their mortgage with cash out along with other options to determine the most inexpensive way to pay off their taxes.

How to Apply for an Indiana Tax Payment Plan

Taxpayers can set up a state tax payment plan with Indiana’s DOR in a variety of ways. Taxpayers can request a payment plan by leveraging Indiana DOR’s website call INtax Pay or by calling the DOR.  Individuals with income taxes and businesses who conduct retail sales can leverage the website. However, if a taxpayer owes less than $100 dollars, they cannot use the website and must call DOR at 317-232-2165. Taxpayers can select the day of the month they want to make a payment on their plan.

Because of policy changes in 2018, Indiana’s DOR provides more flexibility for individuals looking to set up a payment plan with little or no down payment. Unlike some other states, taxpayers need to login into their INtax Pay account each month and make a payment as the department does not do automatic payments.

If You Cannot Make Monthly Payments

If the taxpayer cannot make minimum monthly payments with a tax payment plan, he or she may want to look at Indiana’s Hardship Program, an Offer in Compromise, or some other type of resolution. With a large tax balance, working with a licensed tax professional can ensure optimal results.

If a taxpayer starts a tax payment plan and misses a payment, Indiana’s DOR will most likely cancel the payment plan and refer the case to an outside collection agency. If you miss a payment or foresee yourself having trouble making a monthly payment, call the DOR immediately.

Future Refunds

Taxpayers need to understand that DOR can seize any federal or state tax refunds due to the taxpayer and apply it to any tax balance they have with the state. If a refund covers the entire balance on the payment plan, then the payment plan will come to an end. Otherwise, the balance simply gets reduced and the taxpayer needs to continue making payments.

When in doubt, reach out to a tax professional that has experience in resolving cases with Indiana's Department of Revenue. You can find a list here, or you can start your search below. 

Disclaimer: The content on this website is for educational purposes only and does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.

A Review of Common Indiana State Back Taxes Options

The Indiana Department of Revenue (DOR) is responsible for the administration of the income taxes for the State. The DOR administers all facets of Indiana’s tax code. Furthermore, this includes handling tax resolution matters for individual and business taxpayers.

If a taxpayer has an unpaid tax liability with DOR, they can pay the bill online, through the mail, in person, or on the phone. For more details, check out our guide to paying Indiana state taxes. The DOR also offers various options in order to assist taxpayers in resolving tax liabilities.  For instance, options exist to set up a monthly payment or apply for a settlement through the Offer In Compromise program. Additionally, certain taxpayers may qualify for non-collection status (called currently not collectible by the IRS) or Innocent Spouse relief in the case of a married individual.

Below we will discuss these options (not an exhaustive list) with the state of Indiana. Throughout this article, we may provide practical tips. However, taxpayers should seek the advice of a qualified tax professional.

Contact the Indiana Department of Revenue:

• Individual: 317-232-2240
• Business: 317-232-2240
• Corporate: 317-232-0129
• General: 317-232-2240
• Collections Number: 317-232-2240
• Website: https://www.in.gov/dor/

Tax Payment Plan

The DOR will allow taxpayers to set up a monthly tax payment plan to pay their tax liability over time. However, the DOR requires that individual taxpayers have a balance greater than $100 and that businesses owe at least $500. Payment plan durations may range from 4 to 60 months, and you can pay monthly or bi-weekly. Some downsides exist when taxpayers set up a payment plan. When you don't pay your taxes in full and on-time, the DOR will assess an additional 10% penalty on the balance of the liability plus interest. Interest will continue until the taxpayer has satisfied the entire balance. Therefore, some taxpayers may want to consider other options such as using a credit card or a loan to pay their taxes on time — this allows you to avoid the late payment fee, but you should compare the interest rates of outside financing and the DOR before making a final decision. We discuss Indiana tax payment plans here.

Offer In Compromise

The DOR has a division called the Taxpayer Advocate Office (TAO) that administers the Offer in Compromise (OIC) program. The TAO states that their office addresses complex and special tax problems.

An Offer In Compromise is a program where taxpayers may offer to settle their taxes owed with the DOR for an amount less than their tax balance. Generally, these taxpayers qualify based on their current financial status. Therefore, taxpayers with the ability to pay in full or make monthly payments rarely will qualify. Specifically, the DOR states that the taxpayer must make a reasonable offer based on their total liability and their earnings potential.

You can read more about an Indiana Offer in Compromise program here.

Hardship/Not Collectible

The TAO administers a program that allows taxpayers who are suffering from financial or medical situations. More specifically, they allow taxpayers to set up special low monthly payments or to postpone making payments for a period of time. This program is called the Hardship Program.

In order for a taxpayer to be considered eligible for the hardship program one of the following must apply:

• The outstanding taxes threatens the taxpayer’s livelihood
• A terminal illness or disability has fallen on the taxpayer or an immediate family member of the taxpayer
• The taxpayer has experienced recent personal devastation resulting from a natural disaster or uncontrollable event
• Due to recent unemployment or forced job change, the taxpayer faces financial hardship

Taxpayer’s who meet one the above-stated criteria should complete and file Form FS-H. The TAO will review the application and then determine an appropriate reasonable monthly payment plan or postponement of payments, given the specific circumstances. If accepted into the Hardship Program taxpayers should expect periodic reviews by the TAO of their financial or medical situation to determine if the Hardship Program is still necessary.

Hardship Requirements

Additional requirements of the Hardship Program include:

• being up to date on all current filing and payment obligations
• and to maintain compliance moving forward.

If the taxpayer files a tax return or makes a payment late, the Hardship Program payment plan or deferral may be canceled and normal collection activities will resume.

Taxpayers should be aware that this program is a temporary solution for resolving unpaid taxes. In other words, the Hardship Program will not cancel, discharge, or settle the taxes. Nor will the Hardship Program put a hold on the account indefinitely, or stop or reverse collection actions that have occurred prior to acceptance into the program.

The DOR and the TAO state that they will review Hardship applications within 15 to 20 days. They ask that taxpayers (or their representatives) mail completed applications to:

Office of the Taxpayer Advocate
Indiana Department of Revenue
P.O. Box 6155
Indianapolis, IN 46206-6155

Injured Spouse

In certain situations, a spouse on a jointly filed tax return may be held not liable for taxes. The IRS calls this Innocent Spouse Relief, and the DOR refers to it as Innocent Spouse Relief.

The DOR will consider granting Injured Spouse Relief in any of the following situations:

• The IRS determined that the taxpayer is entitled to Innocent Spouse relief for the same tax year
• Income was not reported on the tax return, and the innocent spouse was unaware or had no access or use of that income
• Income was earned and the innocent spouse had no compensation from this income and the innocent spouse thought all taxes had been filed and paid
• All of the income reported was the spouse’s income and the innocent spouse filed and paid the tax that was due.

If a taxpayer meets one of the above criteria they should file Form IN-40SP. The DOR asks that taxpayers mail Injured Spouse Relief requests to:

Indiana Department of Revenue
Returns Processing and Operations
P.O. Box 7207
Indianapolis, IN 46207
Or, Fax to 317-615-2697

You may also qualify for Injured Spouse Relief in cases where the Indiana DOR seizes your tax refund to cover your spouse's debts such as unpaid child support. If you're worried that the DOR is going to seize your refund for your spouse's debt, you can indicate that when you file your state tax return. Then, the DOR will contact you about the next steps to take. Alternatively, if the DOR has already seized your refund, you can apply for relief by using the Injured Spouse form linked above. 

Other Tax Resolutions

Challenge the Assessment

If the tax liability is the result of an assessment made by the DOR the taxpayer has 60 days from the date on the first notice issued to protest the amount due. The DOR names the first notice “A Proposed Assessment Bill (AR-80/NOPA).” If this does not resolve the matter the taxpayer may request a hearing by writing to the DOR legal division. If the protest is ultimately denied the taxpayer may appeal to the Indiana Tax Court.

If you miss the 60-day window, the DOR says that you lose your right to protest. In this case, you should pay the tax owed, and then request a refund to dispute the liability. Appealing Indiana tax assessments can be complicated, and you may want to work with an Indiana tax pro through the process. 

Bankruptcy

Taxpayers may want to consider speaking to a bankruptcy attorney if they have significant personal liabilities in addition to their taxes. Generally, taxpayers can discharge some state tax liabilities through bankruptcy proceedings. However, taxpayers should seek the advice of an experienced tax and bankruptcy attorney if they believe this option is right for them.

The Indiana Tax Amnesty Program

In 2015, Indiana offered a “Tax Amnesty Program.” The program was available for individuals and businesses with unreported or underreported income tax. Consequently, tax Amnesty allowed these taxpayers to file any unfiled returns and/or pay any associated liabilities or underreported liabilities free of penalty, interest, and collection fees. Taxpayers currently can not apply for this program. However, delinquent taxpayers should take advantage of the program if it opens again in the future.

Consequences of Unpaid Taxes in Indiana

If you don't pay your taxes by the due date or if you don't pay an assessment by the due date, the DOR will send you a demand for payment. Once you receive the demand, you have 20 days to pay, or the DOR will start other collection actions. You can drag out the timeline a bit by paying a third of the assessment by the 20-day deadline. Then, the DOR will send you another notice. As long as you pay half of that by the 20-day deadline, you'll receive a third notice. You must pay the entire amount shown on that notice by the 20-day deadline if you want to avoid collection actions. Here is what can happen if you don't pay your Indiana tax liability. 

Tax Liens or Warrants

If a tax liability becomes past due, the DOR will send two preliminary collection notices to the taxpayer before it pursues other collection actions. The first collection action that the DOR will initiate is to file a tax warrant with the County Clerk of any county where the taxpayer owns property. 

Taxpayers should not confuse a tax warrant with a warrant for arrest. The warrant is another term for a tax lien. It secures the state's interest in your property, and it creates an immediate lien against any vehicles registered to you. The DOR also sends the warrant to either a collection agency or the county sheriff. The collection actions that the sheriff may take under the authority of the tax warrant include auctioning off your property, garnishing wages, and/or levying bank accounts. If your bill is placed with a collection agency, the agency can levy your bank account or garnish your wages.

Failure to File and Pay Penalties

The failure to file a tax return and failure to pay tax penalties represent the main penalties that taxpayers should know about. If you don't file and the DOR has to generate a tax return on your behalf, the failure-to-file penalty equates to 20% of the tax shown on the return. The failure to pay tax penalty represents 10% of the unpaid tax liability or $5, whichever is greater. You can incur a 100% penalty if the DOR believes that you didn't file a tax return because you were trying to evade paying taxes.

Practical Tips

Taxpayers should consider escalating contentious issues to a manager within the DOR. Generally, the authority and experience of a supervisor can help resolve problems. If, after speaking with a supervisor, the taxpayer still believes that he/she is not being heard, is being discriminated against or having their rights violated, or Indiana law is not being followed, they should contact the Taxpayer Advocate Office (TAO).

Indiana Taxpayer Advocate Office

In addition to other duties already discussed, the Taxpayer Advocate Office in Indiana serves to assist taxpayers with complex tax issues. The TAO can help you apply for hardship status or an offer in compromise. They can also assist you if you are an active duty service member materially affected by tax debt collection. Moreover, they protect taxpayers’ rights and help to ensure that the DOR fairly administers its programs and processes. The TAO is part of the DOR, but it works independently. If you need assistance from the Indiana tax advocate office, you can read this guide on the Indiana TAO.

Conclusion

Taxpayers should not ignore resolved tax liabilities. In addition to the penalty, interest, and collection fees, reasonable outstanding tax balances can quickly balloon into crippling liabilities. Not to mention, taxpayers run the risk of having their assets seized and sold. Moreover, they can also face wage garnishments, and/or have their bank accounts levied. Therefore, taxpayers should address delinquent tax obligations as quickly as possible. Furthermore, they should seek help from a qualified licensed tax professional with experience in solving tax problems with Indiana's Department of Revenue. A tax professional can determine which course of action is most appropriate for their situation. Alternatively, you can find qualified tax professionals by doing a search below. 

Tax Professionals Offering Tax Relief Services in Indiana

You can either search above or browse our directory for professionals below. 

• Indiana Tax Resolution Professionals
  • Indiana Enrolled Agents
    • Indianapolis, IN Enrolled Agents
  • Indiana CPAs
  • Indianapolis, Indiana Tax Relief Professionals

IRS Certified Mail: Is a Certified Letter Always Bad News?

The IRS sends letters through certified mail when it needs to reach you about an important tax matter. Often, a certified letter means the IRS wants to meet with you to get more information about a tax return or tax debt, but the agency also uses certified letters to warn taxpayers about collection actions. Sending the notice through certified mail allows the IRS to ensure it was delivered.

In reality, the IRS sends certified letters for many reasons. That letter could be an audit letter, but it could also be a letter asking for identity verification before the IRS releases a tax refund. Review these common reasons for receiving IRS certified mail.

Why Does the IRS Send Certified Mail?

The IRS relies on the U.S. Postal Service to deliver mail to millions of Americans. Unfortunately, the mail isn’t always delivered, and sometimes it’s particularly time-sensitive and important. If problems aren’t addressed, the IRS will resort to sending certified letters.

IRS certified mail has these specific characteristics:

• Mailing receipt: Certified mail comes with a mailing receipt for the sender, in this case, the IRS. This mailing receipt is the first step in a tracking system that ensures delivery to the intended recipient.
• Signature requirement: A certified letter isn’t left in someone’s mailbox. It requires a signature as a record of delivery and will be returned if not accepted by the intended recipient.
• Electronic delivery: The final component of IRS-certified mail is electronic delivery tracking. The sender can review the delivery information online or over the phone.

What does it mean when you get a certified letter from the IRS? Certified letters are generally a last resort for the IRS. That means that, once someone starts receiving IRS certified mail, the IRS will be expecting a response within a reasonable amount of time. Failure to respond could result in serious consequences. 

Is a Certified Letter from the IRS Always Bad News?

Certified mail from the IRS is not always bad news, but it is always important. The IRS only sends certified letters when the matter is time-sensitive or legally significant, which means you should never ignore one regardless of what it contains. That said, receiving a certified letter does not automatically mean you owe money or are in trouble.

There are actually several reasons the IRS sends certified mail that have nothing to do with tax debt. The agency sends certified letters to verify your identity before releasing a refund, to ask questions about information on your return, and to notify you of a refund discrepancy that may actually work in your favor. In these cases the letter is not bad news at all, it just requires your attention and a response.

Where certified letters do become serious is when they involve collection actions. If the IRS is warning you about a wage garnishment, asset seizure, tax lien, or passport revocation, it will send that notice through certified mail specifically because it needs proof you were informed. These letters come with strict deadlines, typically 30 to 90 days, and ignoring them can make your situation significantly worse.

The honest answer is this: a certified letter from the IRS falls into one of two categories. Either it needs information from you and waiting to respond will slow things down, or it is warning you about a collection action and waiting to respond will cost you money and options. Either way, opening it immediately is always the right move.

What IRS Letters Require a Signature?

All IRS certified mail requires a signature upon delivery. Unlike standard mail that gets left in your mailbox, certified letters from the IRS are handed directly to you by a postal carrier and require your signature as proof of receipt. This is intentional. By requiring a signature, the IRS creates a legal record that you received the notice, which is important because IRS deadlines typically run from the mailing date, not the date you open it.

The IRS requires a signature on letters when the contents are legally significant. This includes final notices before collection actions like wage garnishments or asset seizures, audit letters, notices of deficiency, and letters about your right to appeal. These are notices where the IRS needs to prove delivery because your response window, typically 30 to 90 days, starts counting from the postmark.

Do You Have to Sign for IRS Certified Mail?

Technically you can refuse to sign for a certified letter, but this does not help your situation. The IRS considers the letter delivered once the postal carrier attempts delivery, and the deadline clock may still start running. If you are not home, the postal carrier will leave a pickup notice and hold the letter at your local post office for 15 days. After that it gets returned to the IRS, but the IRS will still consider you notified, and collection actions can still proceed.

The safest approach is always to sign for and open any certified mail from the IRS immediately, even if you are worried about the contents. Not knowing what is inside is worse than knowing, because it prevents you from taking action within your response window.

What Does It Mean When the IRS Sends a Signature Required Letter?

A signature-required letter from the IRS signals that whatever is inside carries legal weight and a deadline. It does not automatically mean you are in serious trouble. The IRS also sends identity verification requests and refund discrepancy notices through certified mail. But it always means the agency needs something from you and is creating a paper trail to prove you were informed.

Does the IRS Use ConnectSuite?

Yes. You may notice your certified letter shows "ConnectSuite" as the sender origin on USPS tracking. This is legitimate. ConnectSuite is a mail tracking service used by the IRS to monitor certified mail deliveries. If you see ConnectSuite on a tracking notification or as a return address on an envelope, the letter is real and should be treated with the same urgency as any other IRS certified mail.

Types of Certified Letters From the IRS

If you receive any of these notices, you should reach out to a tax professional or contact the IRS directly to make arrangements. Use the table below to quickly identify your notice number and understand how urgently you need to act.

10 Valid Types of Certified Mail From the IRS

There are many reasons the IRS might reach out to someone, but the most common reasons are related to outstanding balances and requests for more information. However, there are a few valid reasons someone might receive IRS certified mail.

1. Outstanding Balance

An unpaid tax balance is one frequent reason the IRS sends certified mail. The IRS sends standard mail when the collection process begins, but the process will escalate if the notices are ignored. The demand letter will include information on how to resolve the taxes owed with options like an offer in compromise or an installment agreement.

It’s important to contact the IRS immediately after receiving certified letters with a payment demand. This balance continues to accrue interest and penalties, and it will ultimately lead to a Notice of Federal Tax Lien, wage garnishment, bank levy, or some other type of forced collection actions.

2. Refund Discrepancy

Not all news from the IRS is bad news. Individuals and businesses that are expecting a tax refund can expect IRS-certified mail if there is a discrepancy in the return. This discrepancy could be a smaller or larger refund than anticipated, though it’s important to compare any new refund amounts with the original tax return.

Even if a certified letter is informing someone of a refund discrepancy, it’s important to read through the entire notice for any pertinent information. There may be additional steps to take to ensure the refund is processed.

3. Return Questions

Occasionally the IRS has questions about a tax return. If the questions aren’t time-sensitive or critical to processing a return, the IRS will send the request for information through standard mail. However, more critical requests will be sent as certified letters. The IRS will typically include any forms that need to be filled out, as well.

Common questions about tax returns include clarification about sources of income, discrepancies in the mailing address on file, and verification of tax credits and deductions. Delays in answering these questions will delay the refund process.

4. Identity Verification

The IRS takes identity protection seriously and will send certified letters when they need to verify someone’s information. This letter will include instructions on how to complete the identity verification process, and it will require valid forms of identification like the account numbers from a credit card or student loans.

There are other requirements to verify identity as well, such as a mobile phone number, income tax returns, filing status, and either a 5071C, 5747C, or 5447C letter. This process is usually time-sensitive and could delay refunds if not completed quickly.

5. Information Needed

Sometimes the IRS needs more information to process a tax return. There could be missing Form W-2 information or a mismatch in the employer information the IRS has on file. If the information is critical, the IRS will include directions for returning the requested information easily. This might be over the phone or through an online portal.

In some cases, taxpayers might receive an IRS audit letter. This certified letter will include directions for returning supporting documents and updating any other information. It will have a deadline too, so pay close attention to the dates.

6. Return Amendments

While not a formal audit, the IRS does occasionally need to make changes to a filed tax return. In these cases, the IRS will send a CP2000 letter. This letter will outline the changes and include directions for agreeing to or disputing the revisions. Supporting documentation might be necessary for anyone that disagrees with the changes.

These changes to a tax return are generally time-sensitive but they don’t require an amended return. The changes are critical to processing the return, so any delay in responding to the notice could further delay a tax refund.

7. Processing Delays

Processing delays are another reason the IRS sends certified mail. While they don’t send notices for general delays that impact everyone, they do send certified letters to people that are expecting a tax refund but could potentially owe other federal taxes. This notice is called the CP44 notice and it, unfortunately, doesn’t come with instructions.

IRS-certified mail for processing delays like this is a courtesy notification. Detailed information will follow once the IRS has determined whether the refund will be applied to a past-due tax balance or sent to the recipient.

8. To Make Sure You're Getting Notices

If the IRS has sent you multiple notices about unpaid taxes and you haven't responded, the agency will often send a certified letter. If you no longer live at the address, the certified letter will go back to the IRS as undeliverable, and thus, the IRS will know that you are no longer at that address. However, if you receive the letter, the IRS will know that they have been sending correspondence to the correct address, and at that point, they may call you or initiate more severe collection actions to get your attention. 

9. To Warn You About Collection Actions

The IRS may use certified letters to notify taxpayers about certain collection actions. However, it's important to note that sometimes levy notices or notices about your rights to appeals hearings are not sent by certified mail. 

10. Summons

The IRS may use certified mail when it is summoning information from a taxpayer or from a third party about a taxpayer. However, summons can also be hand delivered, sent through registered mail, or potentially delivered another way. Regardless of how the letter comes, you should never ignore an IRS summons. 

Practical Tips for Handling IRS Certified Mail

It can be intimidating to receive IRS-certified mail. It’s not uncommon for people to put the letter aside without reading it so they can deal with the problem later. This can lead to anxiety over the contents of the letter.

Instead of letting anxiety fester, follow these practical tips for dealing with IRS notices, but first, examine the letter carefully to make sure it's really from the IRS and not a scammer:

• Read the entire letter carefully: Letters from the IRS include the type of and reason for the notice, detailed instructions on the next steps, and the most appropriate method of contact.
• Make note of important deadlines: If the IRS wants forms completed or supporting documentation, the certified letter will have a deadline and instructions for returning the information.
• Establish contact to prevent collections: Individuals with outstanding tax balances should establish contact with the IRS to prevent collection activities like additional letters and phone calls.
• Hire a Certified Tax Resolution Specialist: Some people have taxes owed that is almost unmanageable without professional help from certified tax experts.

The most important tip for handling IRS-certified mail is simply not to ignore it. Ignoring certified notices can lead to federal and state liens as well as the potential for wage garnishments.

Find a Tax Relief Solution & Getting Help Through TaxCure

Outstanding taxes can lead to significant financial consequences, such as the potential for levies and tax liens. Individuals and families that find themselves receiving IRS-certified mail for their tax liabilities should reach out to a licensed tax professional with IRS experience. Even though you are receiving a certified letter, you still have options. Depending on the situation, you may be able to set up payments or make other arrangements that prevent the IRS from seizing your assets. If you've received a letter about an audit or a document request, a tax professional can help you deal with the IRS. 

Tax relief solutions can help alleviate financial burdens that hold people back. A Tax Resolution Specialist has the skills and experience to negotiate the best settlement offers for any situation. Start your search for a tax professional below. Our network of tax professionals is made up of pros from around the country with a wide array of experience. At Taxcure, we have developed a unique ranking algorithm for professionals based upon a variety of factors to help taxpayers easily find a professional who is best equipped to help resolve their tax problems. Start below by selecting the agency you have a problem with and then use the filters to select your particular problem/problems to see the professionals with the most experience in those areas. 

Overview of Virginia’s State Tax Payment Plans

If a taxpayer can’t pay back taxes in the State of Virginia, and you can’t pay in full, consider a tax payment plan. A VA tax payment plan can help a taxpayer pay off their tax balance over time.  The Virginia Department of Taxation is the entity responsible for collecting and enforcing state tax laws. The Department of Taxation has many powerful ways to collect back taxes. If a taxpayer cannot pay their back taxes in full, the Department may:

• Garnish bank account(s)
• Garnish wages – which is difficult to remove once
• Place a tax lien on the taxpayer’s property
• Levy property
• Charge you interest and penalties

The state of Virginia uses the term tax lien in a different manner than the IRS. A tax lien is used to reference wage liens, bank liens, and memorandum of lien. A Virginia lien can be an actual seizure of assets through garnishments or bank seizures. 

A Virginia State tax payment plan can help taxpayers avoid and cease such collection actions. Obtaining a payment plan with the Department of Taxation is generally under the discretion of the collections officer. In some cases, the Department will transfer a delinquent tax account to a 3rd party. If so, the taxpayer or the taxpayer’s representative will have to contact the third party and work out payment arrangements. We discuss eligibility for tax payment plans in more detail below.

Typical Duration for a VA Tax Payment Plan

The duration of tax payment plans in Virginia can vary from case to case. However, there are some general rules concerning plan durations. The majority of tax payment plans require the taxpayer to pay the full amount within 12 months. However, the Department of Taxation will consider payment plans up to 24 months based on the taxpayer’s financial condition. The Department of Taxation retains full discretion when deciding how long payment plans should be.

In some cases, the Department of Taxation may assign a taxpayer to a third-party collection agency. If so, it may be possible to negotiate a longer-duration repayment plan.

In some instances, a taxpayer can set up a step payment plan. A step payment plan allows the taxpayer to make smaller monthly payments to start and then increase to more significant amounts later (usually after 12 months). Therefore, a taxpayer can begin with a lower monthly payment over 24 months but can renegotiate after the first 12 months to keep monthly payments lower.

Possible Negative Consequences of a VA Payment Plan

Unlike a tax settlement (or Offer-In-Compromise), a taxpayer must repay the full amount of their back taxes. The significant advantage of a payment plan is that a taxpayer can make manageable monthly payments versus paying a lump sum amount if they were to pay their taxes in full or enter into an Offer-in-Compromise.

Another negative of payment plans is that penalties and interest will continue to accrue. Penalties and interest can be substantial and can significantly increase the amount the taxpayer must repay over the length of the payment plan. Therefore, a taxpayer can pay off their balance as soon as possible to avoid penalties and interest. When you're on a payment plan, the state can also take your state tax refund through the VA refund offset program. If the state takes your refund, you still have to make your regular monthly payment. 

Despite these negatives, payment plans may be the best (and only) option for many taxpayers that lack the financial means to pay back taxes. Moreover, payment plans may help you to avoid or cease further collection action.

What If You Disagree With a VA Notice of Assessment?

If the taxpayer disagrees with the bill, they have the right to request an informal review. The taxpayer can request this by calling the Department of Taxation. If the taxpayer cannot clear their tax bill, they can request a review in writing. Written inquiries require a detailed description of why the taxpayer disagrees with the tax bill, as well as supporting documentation.

If the informal review is unsuccessful, the taxpayer also has the right to file an administrative appeal. Taxpayers must file an appeal within 90 days from the date that the Department assessed the taxes.

If the taxpayer loses the appeal, or if the taxpayer receives a Notice of Assessment and does not dispute the tax liability, they can attempt to set up a payment plan with the Department of Taxation.

How Can I Apply for a Payment Plan with the State of Virginia?

To set up a payment plan, the taxpayer generally must obtain a bill from the Department of Taxation. In Virginia, initial tax bills are called a “Notice of Assessment.” The Department of Taxation will send the taxpayer a Notice of Assessment if they owe taxes when filing their tax return but did not submit payment in full. Once the taxpayer receives a Notice of Assessment, they have 30 days to pay their back taxes in full or provide an appropriate administrative response. If they fail to respond within 30 days, they will begin to accrue penalties and interest.

Taxpayers can set up a payment plan online if you owe less than $25,000 in combined taxes, penalties, and interest and do not have any of the following:

• Padlock
• Revocation
• Criminal warrant
• Bond
• Tax lien issued to an employer or bank
• Bankruptcy filing
• Assignment to a 3rd party collection agency or Virginia Tax field agent

If the taxpayer does not meet the above requirements, they can still apply for a payment plan by contacting the Department of Taxation over the phone at 804-367-8045. Even if they meet the requirements for setting up a payment plan online, they may still want to call the Department to inquire about a longer-term payment plan.

The Department of Taxation does not charge taxpayers a fee to apply for a payment plan.

What Factors Could Lead to a Default of a Payment Plan?

If the Department of Taxation approves a payment plan for a taxpayer, the taxpayer must make all your monthly payments on time. Failure to make payments on time can result in default. If the taxpayer defaults under their payment plan, the Department of Taxation will likely resume collection action. Also, a history of defaults under payment plans could impact the taxpayer’s ability to obtain a payment plan in the future. In addition to failing to make payments on time, failing to file future returns, and pay any other taxes when due could result in default.

Since defaulting can result in the termination of their payment plan, it is advisable to schedule automatic payments using their online account. The Department of Taxation accepts direct debits from their bank account, credit or debit cards, and checks.

Payment plans can be a useful tool to help taxpayers get caught up on your Virginia back taxes. While the Department is amenable to short-term payment plans, those taxpayers seeking longer-term plans will likely need to document financial hardship. An experienced VA tax professional can assist you in setting up an affordable payment plan. A licensed tax professional can also advise you of your rights. 

If you owe VA back taxes and are unsure of your rights or options, reach out to a licensed tax professional today that has experience resolving VA state tax issues. 

Disclaimer: The content on this website is for educational purposes only and does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.

A Broad Overview of Virginia’s Offer In Compromise Program

Many taxpayers that owe back taxes in the State of Virginia are unaware that there are alternatives to endless tax collection efforts. Not only are taxpayers frightened when they receive a collection notice from the Virginia Department of Taxation, but there is also a general lack of knowledge about their options. One such option is known as an Offer in Compromise (OIC). An OIC, or more commonly known as a “tax settlement,” is a formal proposal to the Department of Taxation to settle your outstanding back taxes for less than you owe.

Below we explore the advantages of an OIC. Furthermore, we review the procedures for requesting an OIC and eligibility requirements. An OIC can be confusing and cumbersome. Therefore, a taxpayer may want to consult with an experienced Virginia tax professional to determine if they should pursue an offer in compromise.

How Does an Offer in Compromise Work and What are the Benefits?

An Offer in Compromise is a formal proposal to the Virginia Department of Taxation, essentially setting forth a partial payment plan for settling back taxes. The total of all payments the taxpayer makes under an OIC will be less than what they owe in back taxes, penalties, and interest.

Unlike a payment plan, an OIC is a formal procedure that requires the taxpayer to complete the appropriate form. We cover the necessary tax forms in the following section. Depending on which tax form the state requires, the taxpayer may have to complete a detailed financial statement. The taxpayer may also pay a $50 administrative fee and include supporting documentation, such as:

• A Letter of circumstance detailing your situation — This is one of the most important parts of your application so write the letter very carefully or work with a tax attorney.
• Recent pay stubs
• Copies of statements for assets like retirement accounts
• Documents evidencing all other income, such as rental income or social security benefits
• Copies of recent account statements from lenders evidencing your liabilities
• Documentation supporting any exceptional circumstances
• For business taxpayers – a profit and loss statement for the preceding 12 months and information on any receivables

Setting Forth Payment Terms

The taxpayer must also set forth the payment terms of the OIC by completing the designated space on the form. Payment options can range from just a one-time upfront payment to periodic payments. When opting for periodic payments, often, taxpayers will propose a payment upfront and enclose that payment when returning the OIC form, although a down payment is not required. If the Department of Taxation accepts the OIC, the taxpayer must timely make all payments as provided in the OIC. If the taxpayer fails to make all payments, the OIC will become void, and he or she will be liable for the full amount of the taxes owed.

An Approval or Denial

The Department does not have to accept an OIC. The Tax Commissioner has the authority to accept or deny an OIC. It is possible to propose what the taxpayer believes are reasonable payment terms, even including a sizeable initial payment, only for the Department to deny the offer. Even worse, the Department will not return their enclosed payment. However, it does get applied toward the outstanding balance. Even if the Department rejects the OIC, the taxpayer can sometimes resubmit the offer. While every case is different, it usually takes three months to hear back from the Department regarding an OIC.

When reviewing your application, the Department looks closely at your letter of circumstances. If you make a compelling case about why you can't pay the balance in full, the Department of Taxation is more likely to approve your request and discharge part of the tax bill. If you don't make a compelling case, they will deny your request. However, they sometimes take the middle road and offer an alternative such as making a counter-offer or offering you a payment plan. 

Alternatives to OIC

An OIC is not an ideal fit for every taxpayer. In addition to meeting eligibility requirements, the taxpayer will require sufficient financial resources to make lump sum or large payments to the Department. Taxpayers that are not eligible or who receive an OIC denial can still explore other remedies such as setting up a payment plan or requesting a waiver of penalty discussed here.

Who is Eligible for an Offer in Compromise in Virginia?

There are three instances in which an individual or business may be eligible for an Offer in Compromise in Virginia:

• The taxpayer is not liable for the amount assessed (known as doubtful liability)
• The taxpayer is experiencing financial hardship and is unable to pay the amount owed (known as doubtful collectability)
• As a request for waiver of penalties over $2,000 where extenuating circumstances kept the taxpayer from filing on time

Relevant VA Offer In Compromise Documents

Depending on which category the taxpayer falls into, he or she needs to complete the appropriate form. Where the OIC is based on doubtful liability or the taxpayer is requesting a waiver of penalty over $2,000, he or she must complete and submit the following form:

• Individuals: Form OIC I-2
• Businesses: Form OIC B-2

With OICs based on doubtful collectability, the taxpayer needs to use the following forms:

• For Individuals: Form OIC I-#, FIN I-1, OIC-Fee
• For Businesses: Form OIC B-3, FINB-1, OIC-Fee

The documentation required for OICs based on doubtful liability does not need an extensive financial statement like doubtful collectability. Generally, the taxpayer needs to submit documents supporting their claims of illness, extenuating circumstances, and a letter detailing your conditions justifying an OIC. Regardless of the type of OIC requested, all forms must be completed and mailed along with supporting documentation and payment (if you are making an initial payment) to:

Once a Taxpayer Submits an OIC to the Department

Once the Department of Taxation receives your OIC, they will notify you by mail of their decision. In addition to accepting or denying the OIC, they may also accept the OIC with changes. For example, they may require a modification of the payment terms. To avoid defaulting under the OIC, you will need to timely make all payments, as well as timely filing of all future returns and making all required tax payments. Please note that even if you submit an OIC, the Department may still file a tax lien against your property. If you timely make all payments under the OIC, however, the lien will be removed.

An Offer in Compromise is an excellent way for Virginia taxpayers to resolve back taxes. The requirements and procedures for requesting an OIC can be complex. If you have questions about submitting an Offer in Compromise contact an experienced Virginia tax professional today.

If you owe VA back taxes and are unsure of your rights or options, reach out to a licensed tax professional today that has experience resolving VA state tax issues. Start your search below to find the top-rated professional to help with your unique tax situation.

Disclaimer: The content on this website is for educational purposes only and does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.

IRS Collection Appeals Program (CAP) & Form 9423

Collection actions by the Internal Revenue Service (IRS) can have disastrous consequences for both individuals and businesses. Many taxpayers believe that they lack any recourse to either prevent IRS action or challenge a collection that has already occurred. However, there are some important and powerful remedies available to taxpayers in such cases. One option is known as the Collection Appeals Program (CAP). Below, we discuss the Collection Appeals Program, when a taxpayer can use it, and the closely related appeals program known as Collection Due Process (CDP).

How Does the Collection Appeals Program Work?

The Collection Appeals Program (CAP) is one of two appeals programs available to taxpayers to challenge IRS collection actions. The Program allows the taxpayer to appeal a collection action before or after certain IRS actions. The taxpayer can also use CAP in connection with issues arising under installment agreements. It is essential to note taxpayers cannot challenge the underlying tax liability in a CAP. Moreover, the taxpayer cannot appeal an adverse decision made in the CAP.

Actions the Collections Appeals Program is available for

The Collection Appeals Program can be used to appeal the following types of collection actions:

• A Notice of Federal Tax Lien (NFTL) that was either filed or will be filed by the IRS.
• A wage garnishment (or levy on your wages) that the IRS has already attached to your wages, meaning that your employer is deducting money from your check each pay period, or a levy that will be issued
• A bank account garnishment (levy against your bank account) that has already been executed or will be in the future
• A seizure of property that has already occurred or is in the process of happening. The appeal must be brought before the property is sold
• Requests to issue lien certificates (i.e., withdrawal, discharge, or non-attachment) have been denied
• For installment agreements where there has been a proposed or actual rejection, termination, or modification of the installment agreement

Notice of Federal Tax Lien

A Notice of Federal Tax Lien alerts creditors that the government has a legal right to your property. The government’s lien attaches to property you own and even to property you may acquire after the Notice was filed. A tax lien can have a significant impact on your credit and the ability to sell assets. Even though tax liens do not show on credit reports anymore, creditors still use alternative methods.

Any Type of Tax Levy

A tax levy is the subject of the second, third, and fourth bullet points above. As a general matter, the IRS cannot seize your property unless it first provides you with advance notice. A Notice of Intent to Levy, it is a written notice that the IRS intends to seize your property. The IRS must send the notice must at least thirty (30) days before seizing your assets and must explain the reason for the seizure, as well as explain your appeal rights.

Installment Agreements

Installment agreements are where the IRS agrees to accept payments of back taxes over a period of time paid in monthly installments. There are several different types of installment agreements, including guaranteed, simple, partial payment, streamlined, and non-streamlined.  The IRS will notify you in writing if your proposed installment agreement is not accepted or if your existing installment agreement has been modified or terminated due to a default. Once you receive the notice from the IRS you can challenge the decision through the CAP.

What is the process for filing an appeal under the Collection Appeals Program?

The process depends largely on the current status of the taxes owed and the nature of the appeal. When the IRS assigns your case to an IRS Revenue Officer, you must first notify the Officer that you want to appeal the decision. If the Revenue Officer does not agree with the reasons for your appeal, you will then have a chance to talk to the Revenue Officer’s Manager. In a situation where the Manager also disagrees with you, then you have 48 hours to file a Collection Appeal Request (IRS Form 9423).

If, however, your case has been assigned to the Collections division, you must first contact them using the number listed on the official notice that you received from the IRS. You must explain the reasons for your appeal, and if denied, then you must notify the Collections Manager of your intent to file Form 9423. You must postmark the completed form within three business days of the conference with the Collections Manager.

For an installment agreement, however, it is not necessary to lodge an informal appeal prior to filing Form 9423. You must file the form within 30 days from the date listed on the notice advising you of a rejected proposed installment agreement. If the IRS terminates an installment agreement, the timeline to file a CAP is 76 days.

How to file IRS Form 9423

Form 9423 requires somewhat limited information, mostly basic personal and contact information. There is a section that requires you to list the reasons that you disagree with the collection action. As a general matter, it is easier to provide a detailed explanation on a separate sheet of paper and attach it to your Form. The Form must period to the IRS within the timeframes listed in the above section.

What should I expect after I file Form 9423?

One immediate benefit of filing a CAP appeal is that the IRS will generally stop the collection action until the Appeal has been resolved. There are some exceptions to this, like if the IRS believes that you will attempt to dispose of assets, but in the vast majority of cases, you will get some temporary breathing room.

The IRS reviews CAP appeals quickly. The IRS will schedule a telephone conference with you within several days of reviewing your appeal. At the Appeals conference, you are free to represent yourself or an attorney, certified public accountant (CPA), or any person authorized to practice before the IRS may represent you. If you wish to have a representative attend, you must file a completed Power of Attorney Form 2848 prior to the conference.

Difference CDP and CAP Appeal Programs

The primary difference between a CDP and CAP appeal is one of timing. Unlike a CAP, the taxpayer cannot appeal a proposed collection action with a CDP. For instance, a taxpayer could not file a CDP before a Notice of Federal Tax Lien has been filed. Moreover, unlike a CAP, filing a CDP will not put a stop to IRS collection actions. The main reason for this is that a CDP takes substantially longer to resolve than a CAP. The IRS does not want to put off collection for that length of time. Finally, you cannot appeal installment agreements via a CDP.

The Collection Appeals Program can be an effective method for appealing and even ceasing IRS collection actions. To be sure, the requirements and procedures for filing an Appeal through the CAP can be complex. If you are facing IRS collection action, reach out to a licensed tax professional today to discuss your options. Start your search below.

New York State Tax Relief Program

The New York State tax relief program offers options for people who owe back taxes. The Department of Taxation and Finance (DTF) is known for being fair and consistent. Some programs let you pay over time.

Others help you settle for less if you’re facing financial hardship. This guide outlines your options and explains what happens if you don’t pay. Since rules can change, it’s best to speak with a licensed tax professional.

What Are the Best Tax Relief Firms in New York?

The best tax relief firms in New York include a range of firms led by licensed tax professionals. These companies focus on helping clients find customized solutions to their tax problems, whether they're dealing with the IRS, the NY DTF, or any other state revenue agency. When looking for a tax relief firm, you may want to stay away from the big nationwide firms that use a business model based on large marketing budgets and aggressive sales teams. Instead, you want a local firm with visible tax professionals, a history of solid customer reviews, and a commitment to honesty and transparency. Check out our post on New York's best tax relief firms. 

Contact the New York State Department of Taxation and Finance:

• Individual Taxpayer Assistance: 518-457-5181
• Business Taxpayer Assistance: 518-457-5434
• General Inquiries: 518-485-6027
• Collections Number: 518-457-5434
• Offer in Compromise: 518-591-5000
• Website: https://www.tax.ny.gov/

NY State Individual Tax Resolution Options

How to Pay Taxes in New York

You can pay your taxes online, through the mail, over the phone, or even in person. Our guide to how to pay NY state taxes covers the options and looks at deadlines for state tax payments.

NY Installment Payment Agreement (IPA)

DTF offers payment plans for taxpayers who can’t pay in full. They review your history, finances, and whether you meet their rules before approving an IPA. You’ll make monthly payments, but interest and penalties keep adding up. Most plans give you up to 72 months to pay, usually through direct debit.

Read more here about the different IPAs available and how to apply.

12-Month Currently Not Collectible Status (Hardship)

If you don’t qualify for an IPA, you can apply for hardship status under the New York State tax relief program. It usually lasts one year.

You’ll need to file a form and update your financial info each year. This option works well for retirees or those with disabilities because their income likely won’t change. The state often files a tax lien or warrants during this time.

It is comparable to obtaining a CNC status from the IRS. Unlike the IRS, the DTF does not publicly discuss this option, and there are no formal procedures. However, it is available for taxpayers facing difficult situations. For example, unemployment, illness, family issues, fire or floods, and severe decreases in income.

Innocent Spouse Relief (ISR)

NYS does offer Innocent Spouse Relief as an option for spouses or former spouses who filed a joint tax return. There are three types of innocent spouse relief options available:

• Innocent Spouse Relief
• Separation of Liability
• Equitable Relief

Generally, ISR is best for spouses or former spouses who did not know and had no reason to know a joint tax return they signed had an omission or error. Furthermore, the spouse believes that DTF should not hold him or she responsible for the understatement of tax.

NY Business Tax Options

In NY state, withholding tax and sales taxes are “trust” fund taxes. Businesses collect them from customers or employees and must send them to the state. Unpaid trust taxes are serious, and New York handles these cases individually. Below are common options for businesses with NYS tax debt.

Installment Payment Agreement – IPA

In most cases, NY State requires a down payment of around 20% before they agree to an IPA. However, DTF may still grant an IPAs without a down payment.

Offer In Compromise – OIC

The New York State tax relief program offers an OIC, like the IRS version. NY is more selective about who qualifies. It’s open to individuals or businesses that are insolvent or discharged through bankruptcy.

Some solvent taxpayers may also qualify if paying would cause undue economic hardship. The offer must reflect your asset equity and future disposable income.

For businesses, NY usually won’t accept an offer for less than the amount of trust fund taxes owed. You may be able to settle the principal and exclude penalties and interest. However, income taxes follow different rules. A “responsible person” personally assessed for business tax debt may still apply for an OIC if they meet the financial requirements.

Read more here about the NYS offer in compromise program, who qualifies, and how to apply.

Voluntary Disclosure Program

The NY Department of Taxation and Finance runs a Voluntary Disclosure and Compliance Program, like a permanent NYS tax forgiveness program. If you owe NYS back taxes or have unfiled returns, you can catch up without penalties or criminal charges.

To apply, you must contact the department and outline which taxes you owe. Then, pay what you owe and agree to stay current.

You can apply for voluntary disclosure online or contact a tax professional to help you. If you have undisclosed investments in a Passive Foreign Investment Company, don’t file returns yet. Wait for DTF instructions after applying.

NY State Tax Audits

A New York State audit can be stressful. The DTF may audit you for unfiled returns, unreported income, or mismatched IRS data. Residency audits are also common. You’ll need to prove your return is accurate and may have to challenge the auditor’s claims. Mistakes can lead to surprise tax bills. Getting NY tax help from a professional can make the process easier and protect you from extra liability.

NY State Statute of Limitations for Tax Collection

New York or the DTF has 20 years to collect tax liabilities. It is 20 years from the date the DTF could file a warrant. While the IRS has ten years to legally collect the taxes, NY State has 20 years.

The first date a warrant can be filed is different depending on the situation:

• If there is no right to a hearing, the deadline starts the day after the payment demand letter states.
• If there is a right to a hearing, it would be the first day after the deadline to request a hearing.

Remember, NY State and the taxpayer can agree to extend the time to collect on a tax warrant.

New York State Debt Collection Actions

New York State has up to 20 years to collect NYS back taxes. The best move is to work with a tax pro and choose a New York State tax relief program that fits your situation. But what if you don’t pay? Here's how the Department of Taxation and Finance can collect your debt through enforcement.

New York State Tax Warrant

A New York State tax warrant is a lien against your real or personal property. It gives the state the right to seize your property and garnish your wages.

Even without a seizure, a tax warrant can hurt your ability to get loans or buy and sell property. If you sell while a warrant is active, the state can take the proceeds—up to the full tax bill plus interest, penalties, and fees. Once filed, a warrant is hard to remove unless you pay in full. The best option is to settle your NYS taxes owed before the Department of Taxation and Finance issues a warrant.

Tax Levies in New York

A levy is typically the next step after a tax warrant. A levy is when the New York DTF seizes your bank accounts. The state will contact your bank and give them a 90-day warning. If you don't pay your tax liability, the bank will send the funds in your account to the state at the end of the 90 days.

In New York, the state generally uses the term "tax levy" to refer to bank account levies. When the state levies physical assets, it refers to the process as a seizure. When it levies wages, it uses the phrase income execution.

Income Executions

An income execution lets the state take part of your wages to pay your tax bill. First, they’ll ask you to pay 10% of your gross wages or 25% of your disposable income each payday. If you don’t, they’ll send the order to your employer, who will then withhold the money and send it to the state. Other states call this wage garnishment.

Seizures

After New York State files a tax warrant, it may seize your assets and sell them at auction. The state can take personal and business assets. If the state seizes business assets, it can change the locks, block access, and take all equipment, inventory, and merchandise.

NY Driver License Suspension

If you owe over $10,000 in NY state back taxes, the state can suspend your driver's license. You'll get a Notice of Proposed Driver’s License Suspension. You can stop the suspension by paying in full or setting up a payment plan. If you have a commercial license, you may be exempt.

You may also qualify for an exemption if:

• your wages are garnished
• you pay child support
• you receive public assistance
• you get SSI

Private Debt Collection for New York State Back Taxes

If you don’t pay, the state may send your case to a private debt collector. You’ll receive letter DTF-975.1 to notify you. To confirm the agency is legitimate, ask for your case ID or contact the Department of Taxation and Finance. As of 2022, New York uses Coast Professional, Inc., based in West Monroe, Louisiana.

Tax Refund Offsets

Why didn't I receive my NY tax refund? If you owe NYS back taxes, the state can take your refund. It can also keep refunds to cover IRS or other agency debts through the tax refund offset program. You usually can’t recover offsets.

If you filed jointly and the debt was only your spouse’s, you can file Form IT-280 (Nonobligated Spouse Allocation) to apply.

Contacting the New York State Department of Taxation 

You can reach the NY Department of Taxation and Finance in several ways. Since they may not always take calls, Online Services is often the fastest and most effective option. It works well for responding to notices, bills, or other tax-related needs. 

• Online Services

  The fastest way to manage your NY taxes. After creating an account, you can pay bills, respond to notices, change addresses, file or apply for relief programs, and set up payment plans. Suitable for individuals, businesses, tax pros, and fiduciaries. 

• Contact by Phone

  You can call the department, but they may not take calls during busy times or when short-staffed. Notices usually include a phone number and PIN, though reaching a live agent isn't guaranteed. You can find a list of telephone numbers and hours of operation for individuals here and for businesses here. 

• By Fax

   Letters or notices often include a specific fax number for sending documents. Don’t use just any number online; the fax number must match the one on your notice.

Get Help With Back Taxes and Other Tax Problems in New York

If you are struggling with New York State back taxes, it is generally a good idea to connect with a licensed tax professional or a tax firm with experience resolving NY tax problems found in the link or start your search below. You can also find the top-rated tax professionals by license type below. Keep in mind that often your regular CPA can't help with New York tax problems and to protect yourself financially, you may need to bring in a specialist to help you. Check out these links to tax pros based in New York who focus on tax problem resolution:

• New York Tax Attorneys
  • New York, New York Tax Attorneys
• New York CPAs
• New York Enrolled Agents
  • Brooklyn, New York Enrolled Agents
  • New York, New York Enrolled Agents
  • Rochester, New York Enrolled Agents
  • Rye, New York Enrolled Agents
• Tax Professionals in NY that help with tax problems

Disclaimer: This article is not legal or tax advice. This article should not be used as a substitute for the advice of a competent attorney or tax professional admitted or authorized to practice in your jurisdiction.

New York State Tax Frequently Asked Questions

What happens if I can't pay my NY state taxes?

If you can’t pay NY state taxes, the DTF may issue a tax warrant, seize bank accounts, garnish wages, or suspend your driver’s license for debts over $10,000. You can apply for a payment plan, hardship status, or an Offer in Compromise to manage the debt.

What deductions can lower my NY back tax bill?

You may be able to lower your New York back tax bill by amending past returns to claim missed deductions or credits. The New York Department of Taxation and Finance also offers programs such as penalty abatements and an Offer in Compromise, which can reduce or settle your balance if you qualify. A tax professional experienced in New York tax cases can help determine the best path for your situation.

Does New York offer tax amnesty for back taxes?

Beyond the Voluntary Disclosure Program, New York occasionally runs limited amnesty programs waiving penalties for specific taxes or periods. These are not permanent and require full payment.

Can bankruptcy help with NY state tax debt?

Bankruptcy may discharge some NY income taxes if they’re over three years old and meet specific criteria, but trust fund taxes are harder to discharge. It’s a complex option requiring legal expertise.

Should I hire a tax attorney or CPA for NY back taxes?

Both tax attorneys and CPAs can help with New York back tax issues, including audits, warrants, and offers in compromise. Attorneys can represent you in court and provide legal protection, while experienced CPAs can handle most DTF tax problems and negotiations. The key is finding a local professional you trust who has proven experience with cases like yours.

How much does a tax pro cost for NY back tax issues?

Most New York back tax cases cost between $1,500 and $6,000, depending on the complexity of your situation and the type of resolution needed. More involved cases, such as audits or offers in compromise, typically fall on the higher end of that range.

Can I settle NY business taxes if I’m still solvent?

Solvent businesses may qualify for an OIC if paying in full causes undue hardship, but DTF prioritizes trust fund taxes (e.g., sales, withholding).

A Review of Common Maryland State Tax Resolution Options

Dealing with Maryland back taxes? If you have delinquent tax liabilities in the State of Maryland, some options can help you avoid collection actions and save you money. Short of making a lump sum payment to satisfy the taxes in full, in Maryland, here are some standard tax resolution options:

• Enter into an Individual Payment Agreement
• Submit an Offer in Compromise (OIC)
• Request Penalty Abatement
• Request Innocent Spouse Relief
• Request Hardship Status (short-term)

We discuss these options in some more detail below. However, realize these are not an exhaustive set of options. Therefore, work with a professional tax firm or licensed tax professional to ensure you understand all tax options.

Contact the Maryland Comptroller:

• Individual Tax Issues: 410-260-7980
• Business Tax Issues: 410-260-7980
• General Inquiries: 410-260-7980
• Collections: 410-260-7980
• Website: https://taxes.marylandtaxes.gov/

Who is Responsible for Collecting Taxes in the State of Maryland?

In the State of Maryland, the Office of the Comptroller is the entity responsible for collecting taxes. In fact, Maryland is one of only nine states that use the title of Comptroller – an archaic term meaning “financial officer.” The Office of the Comptroller collects some $16 billion each year in state taxes. Furthermore, in addition to individual and business income tax, some other forms of taxes that the Comptroller collects include sales and use, estates, admissions, and amusement, and alcohol and tobacco.

If you owe back taxes in Maryland, the Comptroller is the entity that will attempt to collect. However, the Comptroller may assign some cases to an external collection agency instead.  The Comptroller’s initial collection efforts will consist of a formal notice (Personal Income Tax Balance Due Notice) advising you of the back taxes and requesting payment. Many taxpayers make the mistake of ignoring these notices, which can result in more aggressive collection efforts down the road.

What Can the Comptroller do if I Fail to Pay Back Taxes?

Like the Internal Revenue Service (IRS), the Comptroller has broad collection powers. As stated in the previous section, the Comptroller’s initial collection efforts will consist of a series of written letters demanding payment. Consequently, if you fail to pay the balance or work out another payment arrangement, the Comptroller will attempt to collect the taxes.

The Comptroller’s office can do any of the following to collect:

• File a tax lien against your property
• Garnish your wages (wage garnishment)
• Execute a bank levy
• Prevent you from renewing your driver’s license or vehicle registration
• Prevent you from renewing a professional, occupational, or business license
• Take your state or federal income tax refunds
• Publish a list online listing your name as a delinquent taxpayer
• Take other legal actions against you

In addition to the above, the Comptroller can charge you 13% interest per year and up to 25% in penalties until the taxpayer pays the taxes in full.

Time for the Comptroller to Assess and Collect Maryland Back Taxes?

The Comptroller’s ability to collect back taxes is generally not limited. The Statute of Limitations (SOL) is essentially a period prescribed by law in which certain kinds of legal action must be brought. If the claim in a timely fashion, it will be waived forever. With regards to assessing taxes in Maryland, usually, the Comptroller’s Office has three years to make an income tax assessment from:

• the date the taxpayer files the return or
• from when the taxes were initially due, whichever is later

In some cases, MD may make an income tax assessment at any time if:

• If the taxpayer files a false tax return with the intent to evade the tax
• The taxpayer makes a willful attempt to evade the tax
• The taxpayer does not file a tax return when it is required
• MD state receives an incomplete tax return for the taxpayer
• A report of federal adjustment is not filed within 90 days of issuance. If the taxpayer does file in these 90 days, the Comptroller must assess within one year after receiving the report.

Statute of Limitations on Collections

With regards to the statute of limitations on collection for income tax, you could not wait out Maryland.  In theory, the collection SOL is seven years from the date of assessment, but for all practical purposes, there was no SOL until recently. Why? Once the state filed a tax lien, they could not collect indefinitely unless the tax lien became satisfied or released. Governor Hogan signed a new law (effective July 1st, 2019) stating that certain tax liens on personal or real property would terminate 20 years from the date of assessment. Therefore, there is a 20 year SOL. Exceptions include whether the law specifies another time or for if it is for inheritance tax. Moreover, the new law does not specify if the changes take effect retroactively.

What are my Options if I Owe Back Taxes in the State of Maryland?

If you or your business owe back taxes to the Comptroller, you have options that can help you avoid or cease the collection actions listed above. The following options apply if you owe the amount that the Comptroller is claiming. If you receive a notice from the Comptroller’s Office and you do not agree that you owe the taxes, or if the amount is incorrect, you have the right to appeal the assessment. Taxpayers must file appeals within 30 days of receiving the initial notice from the Comptroller. Following the appeal, the Comptroller will hold an informal hearing to consider the merits. If the Comptroller rules against you, you have the right to appeal the decision to the Maryland Tax Court.

If you owe back taxes, there are several options available to you. The availability and usefulness of each remedy depend primarily on your personal and financial circumstances. If you are unsure which option is the best for you, consult with an experienced Maryland tax professional.

Individual Payment Agreement

In similarity to the IRS, the state of Maryland allows taxpayers to pay off their taxes over time in some instances. An Individual Payment Agreement will enable you to pay off past due MD taxes over a series of months. While short-term repayment plans are generally freely given, more extended duration plans can present more of a challenge. The most crucial factor the Comptroller will consider when applying for an Individual Payment Agreement is your ability to pay the outstanding taxes. You may be required to complete a Collection Information Statement (MD 433-A) when applying. The statement requires a detailed list of your assets and income.

Repayment terms can vary. Durations of 36 to 60 months are possible. Generally, if you don’t have a lien, you can get a 36-month payment plan with no financial required (MD 433-A). If you already have a tax lien, taxpayers can set up a 60-month payment plan with no financials.  In cases involving financial hardship, the state may grant repayment terms of up to 99 months but usually requires manager approval. You can read more about payment plans here.

Offer in Compromise

An Offer in Compromise (OIC) allows qualified taxpayers to pay a settled amount for less than the total amount of the taxes owed. Unlike Individual Payment Agreements where you repay the full balance over time, an OIC is a form of lump-sum payment arrangement. Most importantly, the OIC program applies to all tax types handled by the state. The significant advantage that an OIC has over other remedies is the Comptroller will agree to accept a lesser amount, potentially saving you a lot of money.

Not every taxpayer is eligible for Maryland’s Offer in Compromise program. The state has specific requirements. For example, the OIC program has time limitations. Moreover, it requires all tax returns filed, and the taxpayer must have exhausted other options to resolve their tax liabilities.

You could apply for an OIC if you doubt you owe, doubt the state will collect what they owe, or if you would face financial hardship if you paid.  To apply for an OIC, you must submit several forms, such as an Offer in Compromise Application (Form 656) and a Collection Information Statement. Furthermore, you must comply with some critical procedural requirements. Also, the Comptroller’s Office will likely ask for supporting documentation, like credit card statements, pay stubs, and bank statements.

If you are eligible, an OIC may be the best option to help you affordably resolve your taxes.

Penalty Abatement

As mentioned above, the Comptroller can tack on an additional 25% in penalties to your outstanding taxes. As a result, tax penalties can make it very difficult for you to pay off what is owed, not to mention you will end up paying much more. It is possible to have penalties abated in full or in part. Generally, to qualify for penalty abatement, you will need to demonstrate sufficient grounds for your inability to pay. Some examples include unemployment, major health issues, and even the loss of tax records due to a natural disaster. While you will still be required to repay the outstanding principal balance, penalty abatement can save you a lot of money and help pay off your balance faster.

Innocent Spouse Relief (ISR)

Innocent Spouse Relief is a remedy available when your back taxes are the result of your spouse’s errors or fraud. You must show that you were not aware of the mistakes at the time that you signed your return and that you were not otherwise involved in the misconduct. If you meet the requirements, you may not owe any back taxes to the Comptroller.

The Comptroller generally mirrors the decision the IRS made with regards to Innocent Spouse Relief. In other words, to request ISR from the Comptroller, you need to send the letter showing the IRS determination on the matter.

If you owe back taxes to the State of Maryland and are unsure of your rights, contact an experienced Maryland tax professional today for assistance.

Hardship Status

Unlike the IRS, a hardship status granted from the Comptroller does not last very long. Generally, hardship status will last only for a few weeks or months. The taxpayer usually must complete the appropriate 433 Form and submit it with other documentation to substantiate certain financial information. It requires managerial approval.

What About Sales and Use Taxes?

With sales and use taxes, or trust fund taxes, Maryland state may allow taxpayers to enter into a payment plan or consider an offer in compromise. Above all, it usually depends on the taxpayer’s tax and financial situation. However, generally, some tax professionals will say to at least offer the amount you owe in taxes as your offer (the tax amount). You can pay off the offer sometimes over a period of years.

Connect With Tax Professionals When In Doubt

A licensed tax professional will have your best interests at heart in determining the best tax resolution for your situation. Certainly, the state wants you to pay as much as possible and as quickly as possible. Having an experienced tax resolution professional working on your behalf can save you money and stress. You can find a list of tax professionals that resolve Maryland state tax problems here.

Maryland State Offer In Compromise Summary & Details

If you owe back taxes in the State of Maryland, an Offer in Compromise (OIC) can be a great option. Not only can you cease collection actions, but you could potentially save a significant amount of money. In this article, we discuss OICs, including the relevant procedures and the benefits of obtaining an MD OIC.

What is a Maryland State Offer In Compromise?

An Offer in Compromise (OIC) is a remedy for qualified individuals with back taxes to pay a settled amount for less than the total amount of the taxes owed. Maryland’s OIC program has similarities to the Internal Revenue Service’s (IRS) Offer in Compromise program. There are, however, some essential procedural differences between the two programs. For example, Maryland may not leverage the same financial standards the IRS uses in determining a taxpayer’s ability to pay.

What Types of Taxes are Eligible for an Offer in Compromise? Benefits?

In Maryland, the State Comptroller is the entity responsible for administering and collecting all taxes. The Offer in Compromise program can be used to settle any outstanding taxes owed to the Comptroller’s Office. Examples of commonly owed taxes include, but are not limited to, Income Tax, Sales and Use Tax, Admissions and Amusement Tax, and Withholding Taxes. Thus, the OIC program has widespread application throughout the State, helping both individuals and businesses to get out of tax liabilities and to avoid collection action.

Generally, with repayment plans, taxpayers are required to repay the entire outstanding balance of the taxes (not to mention interest and penalties). However, with an OIC, it is a form of lump-sum settlement that can result in saving thousands of dollars. Also, those taxpayers subject to collection actions by the Comptroller, such as garnishments or tax liens, can potentially cease such costly efforts.

Who is Eligible for an Offer in Compromise in Maryland?

A taxpayer can apply for a Maryland OIC based on a few reasons:

• doubt as to liability
• doubt as to collectibility (insufficient resources)
• Economic or other hardship

With regards to the two last reasons above, eligibility for an OIC in Maryland largely depends on the taxpayer’s financial situation and resources. Several formal requirements must be satisfied to qualify for an OIC:

• You have a delinquent tax liability and have received an assessment from the Comptroller’s Office;
• You have exhausted all possibilities for an administrative appeal. If there are any open issues that you can appeal, then you cannot apply for an OIC;
• At least two years must have passed since the state assessed the taxes;
• The taxpayer must have filed all returns for prior years;
• You cannot be involved in a pending bankruptcy case of any kind;
• You lack the financial means to make payment in full at any time in the foreseeable future; and
• You lack resources or are unable to apply your present and future resources to paying off your outstanding tax liability.

Every taxpayer’s financial circumstances are different. If you are unsure whether you are eligible to apply for an OIC with the Comptroller, contact an experienced Maryland tax professional.

When Should a Taxpayer Apply for an Offer in Compromise Over Other Tax Resolutions?

The eligibility requirements discussed above allude to the circumstances in which a taxpayer should apply for an OIC. There are generally three reasons that taxpayers can seek an OIC. The first, known as doubt as to liability, is where you do not believe that you owe the Comptroller the assessed amount. The second is known as doubt as to collectability. Fundamentally, the taxpayer believes he or she owes the tax but lacks the financial resources to pay the tax amount in full. Finally, an OIC can be submitted based on economic or other hardship. It occurs where the taxpayer may have sufficient resources to pay the total amount, but doing so would cause financial hardship or would be unfair.

As a practical matter, if a taxpayer is eligible, it is generally advisable to pursue an OIC over other remedies like repayment plans due to the potential for a reduction of the outstanding balance.

What Forms Does the Taxpayer Need to Complete to Apply for an OIC?

To apply for an OIC in Maryland, a taxpayer must complete two sets of forms. The first is an Offer in Compromise Application (Form 656). Form 656 requires the taxpayer to list his or her personal information, the applicable tax and period, select one or more of the three reasons for submitting an OIC (discussed above), and the proposed payment terms of the OIC. The taxpayer must also list the reasons for applying for the OIC.

The taxpayer must also complete a second form called the Collection Information Statement (CIS). For individual taxpayers, the appropriate CIS form is MD 433-A. Businesses must use Form MD 433-B. Both tax forms require the taxpayer to list detailed financial information. The purpose of a Collection Information Statement is for the Comptroller to analyze a taxpayer’s financial condition to determine whether or not the taxpayer is eligible for an OIC and if so, whether or not to accept the offer.

Are Any other Forms Required?

As a general matter, the Comptroller will want to see documents supporting the information listed on the Collection Information Statement. Depending on the taxpayer’s income, expenses and assets, such docs can include bank statements, pay stubs, credit card statements, car loan statements, mortgage loan statements, student loan statements, plus many others. For this reason, it is vital to accurately and fully complete all forms.

How Do I Apply for an Offer in Compromise?

To apply for an OIC, the taxpayer must submit Form 656 and Form MD 433-A (If a business use MD 433-B) to the Comptroller. Item 7 on the OIC form requires the taxpayer to specify how payment will be made. The taxpayer has several choices:

• Payment in full with the offer;
• A deposit pending acceptance by the Comptroller;
• No deposit with payment to be made within a specified period;
• $0.00 offer; and
• A request for a payment plan

The taxpayer must file all required forms and make payments, if any, to the Comptroller at the following address:

Offer in Compromise Program
Comptroller of Maryland
301 West Preston Street, Room 203
Baltimore, MD 21201

What Will the Comptroller Do Once it Receives My OIC?

The Comptroller will review your OIC and Information Statement to determine whether you are eligible for an OIC. If the taxpayer meets the initial requirements, the Comptroller will take a more detailed look at the taxpayer’s circumstances to see whether an OIC is warranted. Some of the factors the Comptroller considers:

• Taxpayer’s health, age, and amount owed;
• Number of family members supported;
• Level of Education;
• Work history;
• Location of the taxpayer
• Source of income;
• Reasons for the tax liability;
• Past tax compliance; and
• Whether the state filed tax liens

Comptroller Will Review the Taxpayer’s Financial Situation

The Comptroller will take a detailed look at your income and expenses. Unlike the IRS, which has set numbers for housing and living standards, Maryland does not have its own Collection Financial Standards. However, at the Comptroller’s discretion, they may allow the taxpayer to claim the IRS limits.

If the Comptroller accepts your OIC, the taxpayer gets notified and placed on a three-year probationary period. It means you must make all scheduled payments on time and file all future tax returns on time. In other words, remain current with tax filing for three years. If you fail to abide by these terms, the Comptroller can demand that you pay the full amount of the outstanding taxes, including interest and penalties. Moreover, the Comptroller will likely commence collection action.

What If the Comptroller Accepts the OIC?

If your OIC application is accepted, you must pay the settlement by the date noted in your agreement. You must also stay compliant with future tax filing and payment obligations. In exchange for you paying, the settlement, the state will stop all involuntary collection actions including wage garnishments, asset seizures, and denial of driver's license renewals.

It is important to note that even if your OIC is accepted, the Comptroller can still attach a lien against your property. The tax lien serves to protect the Comptroller’s interests. Should the taxpayer timely make all payments under the OIC, the Comptroller will release all tax liens.

What If the Comptroller Denies the OIC?

If the state denies your OIC, the Comptroller may send you a written notice to submit a higher offer. The Comptroller may flat-out refuse an OIC. Such a decision can have consequences for the taxpayer. First, the Comptroller can elect to keep your down payment and apply it towards the outstanding balance. Secondly, the Comptroller’s decision is final, and the taxpayer cannot appeal. You may, however, be able to submit another OIC at a later date if your circumstances have changed. Thus, it is essential to make your first OIC a good one.

Help With a Maryland Offer in Compromise and TaxCure

If the taxpayer’s OIC gets denied, there may be other remedies available to such as a repayment plan. If you are unsure of your options, consult with an experienced Maryland tax professional. Above all, if you decide to pursue an Offer In Compromise with the State of Maryland, work with a licensed tax professional that has experience. Above all tax resolutions, applying for an OIC takes time, and it is one resolution whereby having a tax professional on your side can make a world of difference. At TaxCure, we have a large network of licensed tax professionals and only particular professionals have experience with Maryland OICs. Our algorithm has ranked the professionals that have the most experience with this type of solution, you can view top Maryland's Offer in Compromise professionals here, or start your search below.