Georgia Offer in Compromise: What You Need to Know
An Offer in Compromise is an agreement between you and the State Government to settle your back taxes for less than you owe.
An Offer in Compromise is strictly based on numbers; basically, your income versus your expenses and the equity in your assets.
If you can prove to the State you do not have the ability to pay back your taxes in full before the Statute of Limitations expires, then you may be eligible to file an Offer in Compromise. However, it will depend on your Reasonable Collection Potential and how much time is left before Statute of Limitations on the debt expires.
Qualifying for an Offer in Compromise
The State of Georgia OIC program is much like other states in that they evaluate each case based on its own unique set of facts and circumstances. However, the following factors are taken into strong consideration:
- The taxpayer’s ability to pay
- The amount of equity in the taxpayer’s assets
- The taxpayer’s present and future income
- The taxpayer’s present and future expenses
- The potential for changed circumstances
- Whether the offer is in the best interest of the state
As always, the State will only process an OIC application if all required tax returns have been filed.
Submitting Your Offer in Compromise
The documentation the State of Georgia requires is as follows:
- Download and complete the application Form OIC-1, and
- Form CD-14B, Collection Information Statement for Businesses, or
- Form CD-14C, Collection Information Statement for Individuals.
In addition, you will want to review the Offer in Compromise Booklet as it provides basic instructions on how to prepare an offer for submission. https://dor.georgia.gov/offer-compromise-booklet
Offer in Compromise Pros and Cons
The Pros of submitting an Offer to the State of Connecticut is they may allow your debt to be compromised and thereby removed. In addition, the State of Georgia offers an Installment Agreement to pay the Offer if unable to make a full payment by acceptance date.
The Cons are if the State rejects your Offer, it is not subject to administrative or judicial review. However, the State, in some cases, is willing to Counter Offer at an increased amount, normally without submitting additional paperwork.