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DTF-4 (11/08) Page 3 of 3

Instructions

Basis for compromise

Date the offer on the top of Form DTF-4 in the space provided.

This date is important for identification and reference purposes.

The compromise of a tax liability can rest only on one or both

of two grounds: doubt as to liability for the amount owed and/or

Item 1 — list all unpaid tax liabilities sought to be compromised,

doubt as to collectibility of the full amount of tax, penalty, and

regardless of type of tax. If for a particular tax, you are both

interest owed. You may only make one offer in compromise

personally liable and jointly liable with another individual or

regarding a particular tax liability for a particular period, whether

separate entity such as a corporation, you must submit your own

or not such offer is accepted or rejected.

offer if you wish to compromise that tax. A compromise in favor

of another who is jointly liable with you is not a compromise for

A liability will not be compromised if it has been established by a

your indebtedness on the full amount.

valid warrant.

Item 2 — enter the total amount offered. Attach a written

Any assertion of doubt as to liability for the amount owed

statement if you need more space to explain the terms of your

must be supported by submission of an affidavit or affidavits

offer. List any such statement in item 9. If this is a deferred

concerning material facts, certified copies of documents of

payment offer (i.e. any part of the offer is paid either on notice of

record, if any; true copies of all other papers and documents

acceptance or at any later date) you should show:

referred to in any affidavit, and a full exposition of statutes,

regulations and case law relied upon. You are responsible to

a) the amount deposited at the time of filing this offer,

completely present all facts and legal arguments upon which you

b) any amount deposited on prior offers which are applied on

rely. You may be required to provide additional documentation

this offer, and

from third parties. We will not undertake an investigation on your

c) the amount of each deferred payment and the date on which

behalf to resolve ambiguous facts.

each payment is to be made.

If your offer is acceptable, we may also require a written

Item 6 — indicate all the facts and reasons which are grounds

collateral agreement to ensure collection of tax to the fullest

for acceptance of the offer. Use a separate sheet or sheets of

extent possible, and compliance with an accepted offer.

paper, if needed, to fully explain the details of your offer and

Submission of an offer does not automatically suspend pending

list same in item 9. If your offer is based on doubt as to liability,

proceedings in the Bureau of Conciliation and Mediation Services

these grounds must be fully and completely explained. If

or the Division of Tax Appeals, nor does it suspend the time for

appropriate, your assertion must be substantiated by supporting

any taxpayer to take any action with regard to an assessment.

statements and documents. If the basis of the offer is doubt as to

collectibility, also submit Form DTF-5.

Interest and penalties will continue to accrue on the liability while

your offer is under consideration. If your offer is accepted and

Sign the Statement on page 2. If you and your spouse seek to

all terms of the offer are satisfied (i.e. the offer and all collateral

compromise a joint income tax liability, both must sign.

agreements are paid in full) we will abate the balance of the

For a corporation, enter the corporate name, and beneath, an

assessment.

authorized corporate signatory should sign his or her name. Print

Note: Interest will be due at the rate set pursuant to the Tax Law

the signatory’s name and title immediately below the signature.

from the date of the notice of acceptance or agreement until full

The corporate seal should also be affixed.

payment of any compromised liability is received.

On Form DTF-4, there are provisions for a waiver of refunds

Specific instructions

(item 3) and a waiver of the right to contest the liability after the

offer is accepted (item 5).

Use Form DTF-4, Offer In Compromise, if you wish to submit

an offer in compromise. Send the form, along with one copy, by

When Form DTF-4 is submitted by an estate fiduciary (executor

regular mail to:

or administrator), the appropriate letters testamentary or letters of

OFFeR IN COmPROmISe PROgRAm

administration must be submitted. If the offer in compromise will

PO BOx 5100

be handled by the fiduciary’s duly authorized representative, and

ALBANy Ny 12205-0100

the representative will sign on page 2 on behalf of the fiduciary,

submit Form ET-14, Estate Tax Power of Attorney, rather than

Form DTF-5, Statement of Financial Condition and Other

Form POA-1, along with the appropriate letters.

Information, must accompany Form DTF-4 if the offer is based

on doubt as to collectibility. Form DTF-5 can be obtained by

These instructions are intended only as an overview of the offer

visiting our Web site at It is your responsibility

process and a guide in preparing Form DTF-4. For specific

to obtain Form DTF-5 and fill it out completely so that we may

details of the process, you should consult 20 NYCRR Part 5000,

adequately consider your offer. Submit Form DTF-5 with copies

Compromise Regulations, and/or Publication 220, Offer in

of the last three years’ federal income tax returns, a credit

Compromise Program. For additional information or questions

report less than 30 days old, and the last twelve months of bank

concerning the Offer in Compromise Program, please call

statements.

(518) 457-9086, from 8:00 A.M. to 4:25 P.M. (eastern time),

Monday through Friday.

Enter your full name (and/or business or trade name), address,

social security number, and/or employer identification number

at the top of Form DTF-4. If this is a joint (husband and wife)

liability and both wish to make an offer, one offer containing both

names may be submitted. However, for any other joint liability,

such as a partnership, you must submit separate offers.

Form Dtf-4 - Offer In Compromise For Liabilities Not Fixed And Final And Subject To Administrative Review Page 3

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