Vt Form Oic-671 - Offer In Compromise Agreement printable pdf download

FORM OIC-671 Instructions

Offer in Compromise Agreement

General Information

Please print in BLUE or BLACK ink only.

The Vermont Department of Taxes has an Offer in Compromise (OIC) Program, which is an alternative to declaring

a case as uncollectible or creating a very long installment agreement. The OIC program may also

be used to settle disputes or active appeals.

Before a taxpayer can enter the OIC Program, the debt must be final, or in the case of an appeal, a settlement is

offered instead of continuing the appeal.

The acceptance or denial of an OIC will be primarily based on the receipt of a completed form and good faith

payment, along with the validation of the information provided in the agreement, the collection of

information statement, and other information available to the Department. The Department will

also consider your history of filing and paying your tax liabilities in a timely manner.

If the Department accepts your OIC agreement, you must submit payment within 30 days of the acceptance

notification. You also must adhere to the terms of the agreement outlined in Section 6 of the Offer

in Compromise Agreement, Form OIC-671.

Interest and penalty will continue to accrue on any unpaid tax debt until the terms of an accepted offer are satisfied,

and the debt is paid in full.

Acceptance of an OIC by the Internal Revenue Service does not automatically guarantee the Vermont Department

of Taxes will offer the same terms or accept an OIC for Vermont taxes. A request for an OIC for

Vermont taxes is reviewed and evaluated on its own merits according to the Department’s OIC

procedures. The Federal Form 656, Offer in Compromise, cannot be substituted for the Vermont Offer

in Compromise Agreement, Form OIC-671. However, the taxpayer may submit to Vermont copies

of other supporting documents, such as the current financial statements included in a compromise

offer submitted to the Internal Revenue Service.

Preliminary Considerations

A. Read and understand the “Offer Terms” provided in Section 6 of the Offer in Compromise

Agreement, Form OIC-671. By submitting the OIC Agreement, you will be certifying

you have read, understand, and agree to the terms and conditions provided.

B. If you are an individual, review and determine if you qualify for the Low Income

Certification provided in Section 4 of the Offer in Compromise Agreement, Form OIC-671.

C. If you are not an individual that qualifies for the Low Income Certification, calculate

the amount of your good faith payment that must be included with your OIC Agreement

request. The good faith payment equals 5% of your current balance due. The Department

will apply your good faith payment to your outstanding balance and will not refund it,

even if your OIC agreement is not accepted.

Form OIC-671 Instructions

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Vt Form Oic-671 - Offer In Compromise Agreement