The Tax Division authorizes the United States Attorney to compromise only those judgments that the Tax Division has formally referred to the United States Attorney’s Office for collection. Before compromising a judgment, the United States Attorney must obtain the written concurrence of the IRS.

For details of the extent of the United States Attorney’s settlement authority, 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 United States Attorney must refer to the Tax Division for resolution offers to compromise judgments where: 1) the United States Attorney and the IRS have a difference of opinion; or 2) the judgment exceeds the redelegated amount.

[updated April 2018] [cited in JM 6-2.000; 6-6.130; 6-6.420]