1. (a) An offer in compromise must contain the following information:

   1. (1)

      1. (A) The taxpayer's name, business name, address, telephone number, Social Security number, federal employee identification number, and any permit number assigned to the taxpayer by the Department of Finance and Administration.
      2. (B) The taxpayer shall also provide the above information as to any other name or business under which the taxpayer holds property, does business, or receives income;
   2. (2) If the offer is being tendered on behalf of the taxpayer by an attorney, CPA, or other person, a properly acknowledged power of attorney signed by the taxpayer authorizing the person to act on the taxpayer's behalf; and
   3. (3) A statement of the tax types, periods, and amounts due for which the offer in compromise is being requested, along with the exact amount being offered to settle the tax liability.

2. (b)

   1. (1) Where an offer in compromise is based upon the alleged insolvency of the taxpayer, the taxpayer must provide, in addition to the information required under subsection (a) of this section, additional information sufficient to allow the Secretary of the Department of Finance and Administration to determine the taxpayer's financial condition.

   2. (2) This information shall include the following:

      1. (A)

3. (i) If an offer in compromise is also being requested from the Internal Revenue Service, the tax types, periods, and amounts due for which the offer in compromise is being requested from the Internal Revenue Service, along with the exact amount being offered.

   1. (ii) The taxpayer should also provide a copy of the Internal Revenue Service Collection Information Statement for Individuals form submitted to the Internal Revenue Service under the federal offer in compromise.

      1. (iii) If the offer has been accepted by the Internal Revenue Service, the taxpayer must provide a copy of the formal acceptance letter from the Internal Revenue Service;

      2. (B)

         1. (i) A detailed explanation of the taxpayer's financial circumstances resulting in the insolvency of the taxpayer, including but not limited to a statement as to the taxpayer's current:
4. (a) (a) Income;

5. (b) (b) Liabilities; and

   1. (c) (c) Living expenses.

      1. (ii) A taxpayer may use the Internal Revenue Service Collection Information Statement for Individuals form to show the taxpayer’s current:
6. (a) (a) Income;

7. (b) (b) Liabilities; and

   1. (c) (c) Living expenses;

      1. (C) If any of taxpayer's liabilities as listed in subdivision (b)(2)(B) of this section are the result of debts to family members, the taxpayer must specifically detail the nature of the debt and the family relationship;
      2. (D) The taxpayer's income and financial statement for the two (2) years prior to the offer in compromise, or copies of the taxpayer's federal income tax returns for these years;
      3. (E) An affidavit containing a declaration by the taxpayer that there have been no transfers of real or personal property within the past two (2) years other than in the regular course of business;
      4. (F) The source of the funds being offered to settle the tax liability;
      5. (G) If the taxpayer has received a discharge in bankruptcy, a copy of the Order of Discharge;
      6. (H) If the offer in compromise is being made with regard to business taxes such as gross receipts (sales) tax, compensating (use) tax, or withholding tax, a statement as to whether tax was collected but not remitted for the period for which the offer is being made;
      7. (I) An explanation as to why a payment plan is not an option to settle this liability; and

      8. (J) Any other information requested by the secretary or relevant to the issue of insolvency.

         1. (c) Where an offer in compromise is based upon a controversy over the amount of tax due or a mistake by the taxpayer of either the law or the facts subjecting him or her to such tax, the taxpayer must provide information sufficient to explain the nature of the controversy or mistake.

Codification Notes: “CPA” means certified public accountant.