Frequently Asked Questions About the NCDOR Offer In Compromise Process
- What is an Offer In Compromise (OIC)?
- What are the qualifications to submit an Offer In Compromise (OIC)?
- What paperwork should I provide to submit an OIC?
- Where do I get all of the forms needed to submit an OIC?
- How much should I offer?
- How do I submit my OIC?
- How long will it take to receive a decision on my offer?
- How do I check on the status of my offer?
- Will I continue to receive notices from NCDOR while my OIC is under review?
- Will I be assessed a Collection Assistance Fee while my offer is being reviewed?
- Will interest continue to accrue while my offer is being considered?
- Will my bank account or wages be garnished while offer is being considered?
- If my offer is accepted, can I set up an installment payment agreement to pay off the balance?
- If my offer is accepted, how long do I have to pay off the accepted settlement amount?
- If my offer is denied, how do I pay my balance or establish an installment payment agreement?
- If my offer is denied, can I appeal the decision?
- What if I received a counter-offer?
- What if I receive a letter directly from the OIC Unit?
- If I submit an OIC, can liens still be filed against me?
- Who can I contact if I have questions about the OIC process?
What is an Offer In Compromise (OIC)?
The North Carolina Offer In Compromise program allows qualifying, financially distressed taxpayers the opportunity to put overwhelming tax liabilities behind them by paying a lump sum amount in exchange for the liability being settled in full. The goal of the Offer In Compromise program is to resolve a liability in a way that is in the best interest of both the State and the taxpayer.
What are the qualifications to submit an Offer In Compromise (OIC)?
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.
What paperwork should I provide to submit an OIC?
You are required to provide reasonable documentation of your financial condition and ability to pay with your request for an offer. A complete review of your current financial situation will be conducted as a part of the offer process. You are required to complete and submit forms detailing your income, expenses, assets, and liabilities, and you are also required to substantiate the information on these forms with supporting documents. Depending upon your situation, you should submit the forms in either Category I. or II.
Category II. 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.
Where do I get all of the forms needed to submit an OIC?
There are three (3) ways you can obtain the necessary paperwork to complete an OIC.
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You can print the category of Offer In Compromise forms from the OIC home page that matches your situation:
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Select from the two categories of paperwork:
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OIC for Individual Income tax
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OIC for Business tax
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You can request the Offer In Compromise forms be mailed to you by using the Search box and typing the key words “order forms.”
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Complete all of the required contact information and then click "Submit."
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In the drop down box, select either Offer In Compromise for Individual Income or Offer In Compromise for Business depending on your situation.
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If you are unable to complete option 1. or 2. above, you can call the department at 1-877-252-3052 between the hours of 8am-5pm EST, Monday through Friday to have a department employee order the forms on your behalf.
How much should I offer?
The department cannot suggest an offer amount, however, the offer amount must be greater than $0.00.
NOTE: Financial worksheets that can help determine the offer amount are provided within the Form OIC-101 Instruction Booklet in your offer packet, and also on the OIC home page.
How do I submit my OIC?
Submit your completed OIC packet, including your 20% non-refundable down payment and accompanying paperwork (see Q3), via US Mail to:
North Carolina Department of Revenue
Attn: Offer In Compromise Unit
1500 Pinecroft Road, Ste. 300
Greensboro, NC 27407
How long will it take to receive a decision on my offer?
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.
How do I check on the status of my offer?
To check the status of your OIC once it has been submitted, please call 1-877-252-3052 between the hours of 8am-5pm EST Monday through Friday.
Will I continue to receive notices from NCDOR while my OIC is under review?
Yes. Notices are required to be sent out by law.
Will I be assessed a Collection Assistance Fee while my offer is being reviewed?
No, Upon receipt of a properly completed Offer In Compromise, the 20% Collection Assistance Fee being assessed 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.
Will interest continue to accrue while my offer is being considered?
Yes. Interest continues to accrue per statute.
Will my bank account or wages be garnished while my offer is being considered?
Once a complete OIC packet has been received by the OIC Unit, no new garnishments will be served.
- If a forced collection action (i.e., bank garnishment, wage garnishment, levy, etc.) has taken place prior to your submission of the OIC packet, the forced collection action may continue.
- If you wish to establish an installment payment agreement with the department, please call 1-877-252-3052 between the hours of 8am-5pm EST, Monday through Friday.
If my offer is accepted, can I set up an installment payment agreement to pay off the balance?
No. When an offer is accepted, one of the conditions of acceptance is that the agreed upon settlement amount, minus the down payment if made, is to be paid in full within 30 days of acceptance.
If my offer is accepted, how long do I have to pay off the accepted settlement amount?
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
If my offer is denied, how do I pay my balance or establish an installment payment agreement?
- 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 8am-5pm EST, Monday through Friday.
Failure to pay your outstanding balance may result in forced collection action.
If my offer is denied, can I appeal the decision?
No. The North Carolina General Statutes make no provisions for the appeal of a denied offer. However, if you have additional information to provide, and it is prior to the due date in the denial letter, forward the new 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 you need to submit a new OIC for review.
What if I received a counter-offer?
You are always given an explanation as to why an offer was denied, and in some cases you may be given a counter-offer. If you receive a counter-offer, details and timelines for acceptance will be outlined in the letter from the OIC Unit. Follow the instructions as outlined in the counter-offer letter.
What if I receive a letter directly from the OIC Unit?
If you receive a letter directly from the Offer in Compromise Unit or a specific unit employee, please follow the instructions outlined in the letter.
If I submit an OIC, can liens still be filed against me?
Yes. Liens may still be filed against your outstanding debt; however, if your OIC is accepted and the settlement amount is paid in full, the lien(s) will be released.
Who can I contact if I have questions about the OIC process?
Please call the department at 1-877-252-3052 between the hours of 8am-5pm EST, Monday through Friday. A department representative will assist you with your questions.