Form Rv-F0200401 - Instructions For Completing Form Oic-1 - Offer In Compromise Page 2
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5OIC-1 INSTRUCTIONS
OFFER IN COMPROMISE POLICY STATEMENT
The Commissioner of Revenue is authorized under Tenn. Code Ann. § 67-1-102 to compromise tax liabilities if a compromise
is determined to be in the best interest of the State. Compromises may be subject to the approval of the Attorney General and
Reporter and the Comptroller of the Treasury.
The Tennessee Department of Revenue (the Department) will accept an Offer in Compromise (OIC) only if it is determined that
the tax liability cannot be collected in full, the amount offered reasonably reflects collection potential, and the compromise is in
the best interest of the State. An offer in compromise application will be accepted only if the taxpayer makes an offer that
reflects their maximum ability to pay. Applicants should not expect a counteroffer from the Department. The taxpayer is
required to provide full disclosure of financial condition; failure to provide complete documentation with the application may result
in rejection of the application.
Submission of an offer in compromise application does not halt collection activity or alter the payment requirements of any
current installment payment plan. Collection activity will continue pending review of the Taxpayer’s application; to avoid
levyactions, please contact Collection Services at 615-741-7071 to make payment arrangements. If the Taxpayer has an
installment payment agreement, the Taxpayer must continue to make payments under the terms of the agreement. If the offer
is accepted, payments received while the application was pending will be applied to the compromised liability. Failure to stay
current on all filing requirements and make payments by the applicable due date could result in denial of the application.
The Department is available to discuss with the taxpayer the terms and conditions of the OIC program and all filing require-
ments. If it is determined that an OIC may be a possible remedy for a tax debt, the taxpayer may obtain the necessary forms
from the Department and if necessary, receive assistance with its preparation.
BASIC INFORMATION CONCERNING OFFERS IN COMPROMISE
Submission of an offer in compromise application does not halt collection activity or alter the payment requirements of any
current installment payment plan.
Any installment payment arrangement already in effect will be continued while the offer is
considered. Collection activity will continue, and interest and penalty will continue to accrue on any unpaid tax debt while the
offer is being considered.
Any payment made with the offer, or while it is being reviewed, will be applied to the compromised liability in the case of
acceptance. Payments will not be refunded if the offer is declined or withdrawn.
The Department may request additional documentation to verify financial or other information concerning the offer. The
financial investigation may require verification of financial data by visual inspection of records or assets and personal interview.
Offers submitted should reflect the taxpayer’s maximum ability to pay, and taxpayers should not expect a counter offer from
the Department. If Department investigators determine that a larger offer amount is necessary to justify acceptance, the
Department may provide the applicant with an opportunity to amend the offer accordingly.
All information and statements provided by the applicant are subject to verification, and are submitted under oath.
The application is to be submitted only on Form OIC-1, and must include the required financial disclosure form(s). A copy of
Form OIC-1 may be used provided no changes have been made to the form. Depending upon the legal structure of the
applicant, the following financial disclosure forms are required.
Legal Structure
Form(s) Required
Individual
CS-14B
Proprietorship
CS-14B & CS-14C
Partnership
CS-14B & CS-14C
Corporation
CS-14C
Trust/Estate
CS-14C
Corporate Officer
CS-14B
Individual applicants must submit Form CS-14B, (Statement of Financial Condition for Individuals). Self-employed applicants
must submit both forms CS-14B (Statement of Financial Condition for Individuals) and CS-14C, (Statement of Financial
Condition for Businesses). Corporations or partnerships must submit Form CS-14C (Statement of Financial Condition for
Businesses) may also be required of corporate officers or business partners. Applicants may obtain the application and
financial forms at any of 6 regional offices listed on Page 4 of Form OIC-1, or download from the website.
Any collection by the Department prior to the offer or any refund to which the Department is entitled under its offset provision
cannot be considered part of an offer.
An offer cannot be considered until all required tax returns have been filed. Timely filing of all tax returns is required while the
offer is pending.
Tax liens will be released only after an offer is accepted and the amount offered is paid in full.
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