Offer In Compromise

There are four (4) basic qualifications to submit an offer:

• The period is collectible under NC G.S. 105-241.22.
• You must have filed all required tax returns and reports.
• You are not the subject of an open or active bankruptcy case.
• You are not the subject of an open or active NC Department of Revenue criminal investigation.
   

You must provide reasonable documentation of your financial condition and ability to pay with your request for an offer.

You have two choices of the type of offer request. Both require you to include several items. Carefully read through the OIC-101 instruction booklet and use the OIC Checklist. 

Depending upon your situation, you should submit the forms in either Category I. or II.

Category I.  For any basis of compromise other than reasonable doubt as to the amount of liability: 

Forms you are required to provide are:

• A completed and signed Form OIC-100 Offer In Compromise.
• 20% down payment in certified funds (non-refundable).
  • Exceptions to this requirement are allowed if you submit a Form OIC-102 Third Party Affirmation, or if your gross income is below the Federal Poverty Guidelines.
• Collection Information Statement Form RO-1062 or RO-1063 (required forms detailing income, expenses, assets and liabilities).
  • All business offers are required to attach a Form RO-1062 for each officer, partner or member.
• Supporting documents including all items listed on the Collection Information Statement, such as pay stubs for the last 3 months, loan records, mortgage statements, etc.
• Most recent 3 months of bank statements from all accounts.
• Most recent 2 years Federal Income Tax returns.
• Verification of any claimed health issue or disability.
• Federal account transcript for all periods if you claim to also owe the IRS.

Category II.  For an OIC based on reasonable doubt as to the amount of the liability under the law, and the facts:

Forms you are required to provide are:

• A completed and signed Form OIC-100 Offer In Compromise.
  • Section 8, located on the 2nd page, must explain why you do not believe that you owe the tax.
• 20% down payment in certified funds (non-refundable).
  • Exceptions to this requirement are allowed if you submit a Form OIC-102 Third Party Affirmation, or if your gross income is below the Federal Poverty Guidelines.
• Documentation showing the computation of the claimed corrected tax due along with any verification documents to prove your claim.
   

There are three (3) ways you can get the necessary paperwork to complete an OIC.

• You can print the category of forms from the OIC page that matches your situation.
  • Select from the two categories of paperwork:
    • OIC for Individual Income tax
    • OIC for Business tax
• Have the forms mailed to you by using the Search box and typing the key words “order forms.”
  • Complete all the required contact information and then click "Submit."
  • In the drop-down box, select the forms that match your situation, either:
    • Offer In Compromise for Individual Income, or
    • Offer In Compromise for Business
• If you are unable to complete the first two options, you can call the department at 1-877-252-3052 between the hours of 8 a.m. - 5 p.m. EST, Monday through Friday.
  • Ask a department employee order the forms for you.
     

The department cannot suggest an offer amount; however, the offer amount must be greater than $0.00.

Note: Financial worksheets can help you determine the offer amount. They are in the Form OIC-101 Instruction Booklet in your offer packet, and also on the OIC page.

Submit your completed OIC packet via US Mail.

• Be sure to include your 20% non-refundable down payment and required paperwork.

North Carolina Department of Revenue
Attn: Offer In Compromise Unit
1500 Pinecroft Road, Ste. 300
Greensboro, NC 27407

You should receive a decision within 90 days of the submission of your OIC. This timeframe can vary depending on the current volume of submissions and the time of year.

To check the status of your submitted offer, please call 1-877-252-3052 between the hours of 8 a.m. - 5 p.m. EST Monday through Friday.

Yes. The law requires notices be sent.

No. Upon receipt of a properly completed Offer In Compromise, the assessing of the 20% Collection Assistance Fee will be put on hold while your offer is being reviewed. 

• If your offer is not accepted, then the 20% Collection Assistance Fee may possibly be assessed.  

Yes. Interest continues to accrue per statute.

Upon receipt of a complete OIC packet by the OIC Unit, no new garnishments will be served.

• If a forced collection action (bank garnishment, wage garnishment, levy, etc.) is already in place before you submit the OIC packet, the action may continue.
• To establish an installment payment agreement with the department, please call 1-877-252-3052 between the hours of 8 a.m. - 5 p.m. EST, Monday through Friday.

No. One of the conditions of acceptance is that the agreed upon settlement amount (minus the down payment) be paid in full within 30 days of acceptance.

30 days. 

Please mail the settlement payment to:

North Carolina Department of Revenue
Attn: Offer In Compromise Unit
1500 Pinecroft Road, Ste. 300
Greensboro, NC 27407

• Use the website to pay online now.
• To establish an installment payment agreement, please call the department at 1-877-252-3052 between the hours of 8 a.m. - 5 p.m. EST, Monday through Friday.

Failure to pay your outstanding balance may result in forced collection action.

No. The NC General Statutes make no provisions for the appeal of a denied offer. However, if you have additional information to provide, and it is before the due date in the denial letter, forward this information and/or supporting documentation, with an explanation to:

North Carolina Department of Revenue
Attn: Offer In Compromise Unit
1500 Pinecroft Road, Ste. 300
Greensboro, NC 27407

Note: If the due date in the denial letter has passed, then submit a new offer for review.

Letters from the OIC Unit always explain why an offer was denied. 

If your letter includes a counteroffer, review its details and timelines for acceptance. 

• Follow the instructions as outlined in the counteroffer letter.

​If you receive a letter from the OIC Unit, or a specific unit employee, please follow the instructions outlined in the letter.

Yes. Liens may be filed against your outstanding debt.

• If your OIC is accepted, then payment of the settlement amount in full releases the liens.

Please call the Department at 1-877-252-3052 between the hours of 8 a.m. - 5 p.m. EST, Monday through Friday. 

A Department representative will assist you with your questions.