The Tax Division has delegated to the United States Attorneys the authority to compromise and close certain civil claims. See Tax Division Directive No. 139 located in 28 C.F.R. Pt. O, Subpt. Y, App., “Redelegation of Authority to Compromise and Close Civil Claims.” The Tax Division delegates compromise authority to the United States Attorney only for judgments that the Tax Division has formally referred to the United States Attorney for collection, as discussed in USAM 6-7.300. The Tax Division retains final authority to compromise all other civil tax claims that the United States Attorney handles.

Rather than using the term “settlement offer,” Tax Division Directive 139 refers to “offers in compromise”; this term is not to be confused with the Offer-in-Compromise procedure administered by the Internal Revenue Service in accordance with 26 U.S.C. § 7122.

[updated April 2018]