Department of Taxation and Finance

Administration of the Offers in Compromise Program

Taxpayers may settle a tax liability for less than the full amount by making an offer in compromise to the Department of Taxation and Finance. We examined the Department's administration of this program and found that certain improvements can be made. For example, offers can be monitored more effectively to prevent processing delays and ensure compliance with payment terms and Department regulations. To improve monitoring, we recommend that a comprehensive set of benchmarks be developed for the program and improvements be made to the program's data base. We also recommend that the payments made through this program be better controlled to ensure that all funds are properly accounted for.

For a complete copy of Report 97-S-63 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.