OAR 150-305-0090
Settlement Offer


(1)

As used in this rule:

(a)

“Settlement offer” means an offer made by a taxpayer or an authorized representative to satisfy a self-assessed tax liability or tax liability on which appeal rights have expired.

(b)

“Completed settlement offer” means a settlement offer that has been accepted by the department and for which final payment of the offered amount has been made.

(c)

“Tax liability” means one or more tax years and programs.

(2)

A settlement offer must be made in good faith. Fraud or misrepresentation on the part of the taxpayer or authorized representative may invalidate a settlement offer or a completed settlement offer.

(3)

Prior to making a settlement offer, a taxpayer must be in compliance with filing requirements for all tax years and tax programs administered by the department. A taxpayer is “in compliance” when all required returns or reports have been filed, whether or not timely, or when, in the absence of a return, an assessment issued by the department under ORS 305.265 (Deficiency notice)(10) is considered correct and final by the taxpayer and the department.

(4)

For settlement offers submitted on or after October 1, 2001, a taxpayer will only be allowed one completed settlement offer for which the 3-year future compliance requirement under subsection 10 has been satisfied.

(5)

The settlement offer must be accompanied by a cashier’s check or bankable funds in an amount equal to 5 percent of the total offer. This 5 percent payment will be deposited to the credit of the taxpayer’s liability as part of the offer. This payment will not be refunded, even if the offer is not accepted. The taxpayer or authorized representative may withdraw their offer prior to the department’s acceptance or rejection of the offer. The 5 percent payment will be refunded in such cases.

(6)

The offer must be made by completing the “Application for Settlement Offer” form provided by the department. This form includes a calculation of an acceptable settlement offer, based upon a standard formula determined by the department.

(7)

A settlement offer will be reviewed by the department and accepted or rejected based on the department’s evaluation of the taxpayer’s ability to pay and the anticipated costs of further collection work. Examples of facts and circumstances that may indicate the lack of an “ability to pay” include but are not limited to:

(a)

The taxpayer’s sources of income or assets are negligible in comparison to the outstanding liability.

(b)

The taxpayer owns assets that, in total, are worth less than the settlement offer.

(c)

The taxpayer demonstrates an inability to pay the account within two years.

(d)

The taxpayer qualifies under “hardship” guidelines based on the financial statement.

(e)

The taxpayer verifies an inability to borrow sufficient funds to pay the liability in full. Verification may be made by providing denial letters from lenders, providing a work history and by credit references.

(f)

The taxpayer has little or no equity in personal assets, such as stocks, bonds or dividends; retirement funds; automobiles, truck, trailers or other vehicles; or equipment.

(g)

The taxpayer has little or no equity in real property, such as a personal residence, farm, houseboat or bare land.

(8)

A settlement offer will be deemed accepted when the department sends its written notification to the taxpayer or authorized representative. In the event an offer is rejected, the taxpayer or authorized representative will be promptly notified in writing.

(9)

If the settlement offer is accepted, the taxpayer must pay the balance of the offered amount within 10 days of the date of the letter notifying the taxpayer of the acceptance. An election can be made to pay the balance in no more than six equal monthly installments. Payment must be in bankable funds.

(10)

The terms of the settlement offer include but are not limited to:

(a)

The taxpayer agrees to waive any appeal of the assessment of the tax liabilities that are the subject of the settlement offer under the provisions of ORS 305.280 (Time for filing appeals)(3); and

(b)

There is a 3-year future compliance period during which the taxpayer must file all tax returns that are due and must pay all amounts that have been assessed. The taxpayer must pay the amounts that have been assessed within 90 days of the date of the assessment unless paragraph (c) of this subsection applies. This compliance requirement includes all tax programs administered by the Oregon Department of Revenue. This 3-year compliance period begins when the taxpayer makes final payment of the amount offered.

(c)

The taxpayer is not required to pay all amounts due within 90 days of the date they are assessed if the taxpayer files an appeal within 90 days of the assessment date. A taxpayer who files an appeal within 90 days of the assessment date must pay all amounts that are determined to be due within 90 days after the taxpayer’s appeal rights have been exhausted or have expired and the liability has become final.

(d)

An amount determined to be due under paragraph (c) of this subsection must be paid within 90 days after it has become final even if the appeal is finally resolved after the 3-year compliance period has expired.

(11)

In the event that any of the requirements set forth in subsection (10) are violated, collection action may be reinstated on the full amount of the liabilities that were the subject of the settlement offer. See OAR 150-305-0190 (Compromise of a Disputed Liability) for settlement of disputed tax liabilities.
150–305–0010
Requirement for Social Security Numbers
150–305–0014
Applicable Dates
150–305–0016
Electronic Filing
150–305–0018
Acceptance of Cash Payments
150–305–0030
Declaratory Rulings
150–305–0040
Public Notification of Delinquent Taxpayers
150–305–0050
Release of Tax Lien and Clouds on Title
150–305–0052
Release of Lien
150–305–0060
How to Appeal When the Department Denies a Request for Waiver of Penalty or Interest
150–305–0062
Discretionary Penalty Waivers for Information Returns
150–305–0064
Accrual of Interest After Waiver
150–305–0066
Discretionary Waiver of Interest
150–305–0068
Discretionary Penalty Waivers
150–305–0070
Interest Waivers Due to COVID-19 Pandemic Emergency
150–305–0080
Closing Agreements
150–305–0085
Financial Institution Data Match
150–305–0090
Settlement Offer
150–305–0092
Suspended Collection Status
150–305–0094
Cancellation of Liabilities Discharged in Bankruptcy
150–305–0100
Subpoena Issued by the Department
150–305–0110
Disclosure of Confidential Information Provided to the Department of Revenue
150–305–0120
Implied Consent
150–305–0130
When Deduction for Amounts Paid as Wages or Remuneration Permitted
150–305–0140
Interest on Deficiencies and Delinquencies
150–305–0142
Interest on Refunds
150–305–0144
Interest Rate Formula Rule
150–305–0150
Defines Order for Purposes of Interest Rate Increase
150–305–0152
Interest Rate Increase — Jurisdictional Only Appeals
150–305–0160
Penalty for Dishonored Checks
150–305–0170
Representation of Taxpayers before the Department of Revenue
150–305–0180
Designation of Oregon Tax Matters Partner
150–305–0182
Binding Actions of the Tax Matters Partner
150–305–0190
Compromise of a Disputed Liability
150–305–0192
Appeals of Interest Charged on the Underpayment of Estimated Tax
150–305–0194
“Deficiency” Defined
150–305–0196
Notices of Deficiency and Assessment Mailed When Authorization to Represent Signed
150–305–0198
Reopening an Audit
150–305–0200
Adjustments Included in Deficiency Notice When Federal Audit Report Received
150–305–0202
Language Used to Request a Conference or File Written Objections
150–305–0204
Conferences: Purpose and Procedure
150–305–0206
Written Objections: Procedures
150–305–0208
Assessing Tax on Failure to File
150–305–0210
Last Known Address
150–305–0212
Interest on Deficiency
150–305–0214
Penalties
150–305–0216
Appeal from a Notice of Deficiency: Periods of Limitation
150–305–0218
Waiver of a Conference or Written Objection
150–305–0230
Claim for Refund
150–305–0232
Notices of Proposed Refund Adjustment Mailed When Authorization to Represent Signed
150–305–0234
Written Objections to a Proposed Refund Adjustment
150–305–0236
Date of Notice
150–305–0238
Audit Period for Refunds Issued without Examination
150–305–0240
Proposed Refund Adjustment
150–305–0260
Relief for Subsequent Tax Years
150–305–0270
Beneficial Ownership
150–305–0272
Cancellation of Doubtful Liabilities
150–305–0274
Refund of Penalty and Interest
150–305–0276
Appeal Time Frame
150–305–0290
Concurrent Appeals
150–305–0300
“Methods of Collection” Defined
150–305–0302
Contracts Requiring Certificate of Compliance with Oregon Tax Laws
150–305–0304
Certificate of Compliance With Oregon Tax Laws
150–305–0306
Circumstances Not in Violation of Oregon Tax Laws
150–305–0308
Annual Certification Requirement
150–305–0320
Mediation
150–305–0330
Appeal Procedures
150–305–0340
Stay of Collection: When Collection Action Won’t Be Stayed
150–305–0350
Offset of State Debt Through U.S. Treasury Offset Program
150–305–0360
Rules Application
150–305–0362
Appearance Procedure — Local Taxes Administered by the Department of Revenue
150–305–0370
Use of Checkoff Resources
150–305–0380
Application and Signature Due Dates
150–305–0390
Certification of Nonprofit Entities for Instruction Listing
150–305–0392
Definitions of the Terms “Affiliated and “Central Office”
150–305–0394
Signatures Must Be on Department’s Form
150–305–0396
Signature Gathering Period
150–305–0410
Charitable Checkoff Financial Reporting Requirements
150–305–0420
Costs of Administration
150–305–0430
Method of Distribution from Check-off Contributions and Reimbursement of Administrative Expenses
150–305–0450
Depositing Refunds into College Savings Account
150–305–0460
Verification of Returns, Statements, or Documents Filed Under Tax Law
150–305–0470
Date When Writing or Remittance Deemed Received by Department of Revenue
150–305–0480
Returns Not Filed for Three Consecutive Years
Last Updated

Jun. 8, 2021

Rule 150-305-0090’s source at or​.us