The Tax Division will authorize the United States Attorney to sign a stipulation of dismissal of the Government's claim or of a case that the United States Attorney has handled under the following circumstances: 1) the Department has accepted a settlement offer in a case; 2) the taxpayer is required to pay the Government within a relatively short period of time (e.g., within 30 days of notification of acceptance); and 3) the United States Attorney has received the total amount due from the taxpayer. In general, the Tax Division does not permit the terms of a compromise to be set forth in the stipulation. Please send a copy of the dismissal order to the Tax Division.

When payment to the Government is due more than 90 days after notification of acceptance, generally the settlement will provide for entry of judgment in the Government's favor. For the policy on security for deferred or installment payments, see USAM 6-6.540. The United States Attorney should send a copy of the judgment to the Tax Division.

The taxpayer should make payments due under a compromise by cashier's or certified check, payable to the "United States Department of Justice." The taxpayer should submit all such payments (other than those due under a collateral agreement) to the United States Attorney. The United States Attorney should deposit all payments received by the direct deposit (lockbox) system, pursuant to DOJ Policy Statement 7000.01 “Deposit of Cash Collections Resulting from Department of Justice Civil Litigation and Enforcement” (Nov. 5, 2012), and also should notify the Tax Division and the Internal Revenue Service Center that payment has been received. In the event of any default, the United States Attorney should advise the Tax Division immediately. The taxpayer should send payments required under a collateral agreement directly to the Service Center.

[updated April 2018]