Getting rid of tax debt: Maryland Offers in Compromise

Updated: Oct 17, 2018

Maryland taxpayers can make an Offer in Compromise (OIC) to resolve all taxes administered by the Comptroller. An OIC is not an appeal of the underlying liability; instead, it is a request to abate or reduce the amount of taxes due, based upon the taxpayer’s particular financial circumstances. Unlike the Comptroller’s hardship programs, which only halt collection, an accepted Offer will wipe out liens, too. Offers will only be considered if the following statements are true: (1) you have been assessed for a delinquent tax liability; (2) you’ve exhausted all other avenues of administrative appeal; (3) there is no remaining issue in your case that can be appealed; (4) two years have passed since you became liable for the tax (note to late filers: this means the assessment date, not the original due date of your taxes); (5) you must be current on all filings due to the Comptroller’s office; (6) you are not currently involved in an open bankruptcy proceeding; (7) your financial situation makes it unlikely that you’ll be able to pay the full balance in the foreseeable future; and (8) you are either without resources or unable to apply your resources to paying the delinquent taxes. Offer decisions are final and not appealable, but you can try a new OIC if your circumstances change. The Comptroller may counter you with a different amount. Even in the best case scenario of your Offer being accepted, be warned: you must stay current on your tax filings for three years – or else the full liability will immediately become due.

More information can be found here:


https://taxes.marylandtaxes.gov/Individual_Taxes/Individual_Tax_Compliance/Get_Help/Assistance_Programs/Offer_in_Compromise.shtml


https://taxes.marylandtaxes.gov/Resource_Library/Tax_Publications/Tax_Tips/Business_Tax_Tips/Bustip58.pdf


https://taxes.marylandtaxes.gov/Tax_Compliance_and_Enforcement/Tax_Compliance_Information/Get_Help/Assistance_Programs/Offers_in_Compromise_Forms_and_Instructions.shtml

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