For Immediate Release
December 3, 2003

Ohio - Offer in Compromise Program Established for Delinquent Taxpayers

The State of Ohio has established a formal program of an Offer in Compromise regarding collection claims by various state agencies.  Among the agencies participating in this program are the State of Ohio, the Department of Taxation, and the Attorney General’s Office. 

The Offer in Compromise program allows the Attorney General, with the consent of the state agency, to compromise a claim for less than the tax, premium or principal liability, without reference to penalty or interest.

In order to qualify for this program, one or more of the following conditions must be met:

1. taxpayer must be experiencing economic hardship, but not  have filed for bankruptcy;
   

2. collection of the debt is doubtful;  and
   

3. in certain circumstances, it is highly probable that if collected, the claim would be subject to refund.

Previously, the State of Ohio and the Department of Taxation were prohibited from compromising collection amounts.

If a taxpayer is seeking to have only a portion or all of a penalty on a tax waived, an Offer of Compromise is not the solution. These requests are processed through the regular channels of the Attorney General’s Office.

Some of the requirement that must be met under the program include:

• completion and submission of an Offer in Compromise Form or by written request;
  

• disclosure of all obligations to the state;
  

• payment in full within 60 days of execution of the Offer in Compromise Agreement;
  

• compliance with state reporting and payment requirement for a period of 5 years after execution of the Agreement;
  

• full financial disclosure.

Failure to fully comply with the above may result in rejection of the offer, with reinstatement of the full amount owed, including accrued interest.

All determinations made under an Offer in Compromise  are final.

If you would like additional information on this topic or have any questions, please contact David Rohlmeier, Regional Vice President - Sales & Use Tax Group at (469) 364-9600.  E-mail drohlmeier@thesaltgroup.com 

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