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Department of Taxation and Finance

Offer in compromise terms and conditions

If we accept your offer in compromise, we will mail you a copy of the complete terms and conditions that apply to your offer. Please refer to this document to fully understand your obligations.

These terms and conditions include, but are not limited to, your agreement to:

  • fully comply with all tax laws, including filing returns and paying tax when required, for the next five years
  • allow the department to apply any payments you make, including toward your accepted offer, toward any of your liabilities, in any order (unless otherwise specified in writing)
  • allow the department to apply your tax refunds, credits, or funds eligible for offset (such as lottery offsets and unclaimed funds)—for periods before and including the calendar year in which we accept your offer—to the original outstanding liability

Note: We will not count these payments toward your accepted offer amount. If these payments satisfy the original liability, we will refund any excess.

  • waive your right to contest the amount of the liability being compromised
  • meet all obligations under your compromise agreement and any collateral agreements otherwise, we will not compromise the debt in question
  • waive any statute–of–limitations defenses against the assessment and collection of the liability being compromised

Note: If you fail to comply with the terms of the offer, you also waive any statute–of–limitations defenses against the issuance of new assessments for the compromised liability.

  • forfeit any current capital loss or net operating loss credits on any future New York State tax returns

Failure to comply with the terms and conditions:

If you fail to meet all the terms and conditions of your accepted offer in compromise and any additional collateral agreements, we will:

  • notify you by mail that your offer is in jeopardy,
  • give you an opportunity to remedy the deficiency; you must respond to our written notification immediately.

If you do not respond to our written notification immediately, we will:

  • revoke your offer;
  • reinstate the original liability, including all interest and penalties, minus any payments you made; and
  • proceed with collections on the remainder of your original liability.
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