Fillable Business Doubt as to Collectability (Michigan)

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Business Doubt as to Collectability (Michigan)

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Business – Doubt as to Collectability
This package includes the forms required for a business to file an Offer in Compromise based on
Doubt as to Collectability.
A taxpayer will need to provide supporting documents as directed in the instructions.
The forms included in this package are:
• Offer in Compromise Checklist (DOUBT AS TO COLLECTABILITY - BUSINESS) (Form 5500)
• Michigan Offer in Compromise (Form 5181)
• OIC Schedule 2B (Business) – Collection Information Statement for an Offer in
Compromise Based on Doubt as to Collectability (Form 5184)
Michigan Department of Treasury
5500 (10-16)
Offer in Compromise Checklist (DOUBT AS TO COLLECTABILITY - BUSINESS)
Failure to include ALL requested documents may result in your offer being rejected or the processing of your offer delayed. For each reason an offer in
compromise is being submitted, please attach the following documents to your submission.
I do not believe I can pay the tax.
Business – Ofcers who are personally responsible for the debts of a business use the individual forms, instructions, and checklist for doubt as to
collectability. All others provide the requested information for the assets and liabilities related to the open or closed business.
Completed Offer in Compromise (Form 5181).
Initial offer payment of $100 or 20% of the offer, whichever is greater.
Completed OIC Schedule 2B (Business) – Collection Information Statement for an Offer in Compromise Based on Doubt as to Collectability
(Form 5184).
A current Prot or Loss statement covering at least the most recent 12 month period.
Copies of the most current six (6) months for each bank, investment, and retirement account.
A list of all business equipment, ofce furniture and other business assets including the fair market value for each.
A list of all accounts receivable and notes receivable showing the payer, amount due, age and status of each account.
If an asset is used as collateral on a loan, include copy(ies) of the most recent statement from lender(s) indicating, monthly payments, loan
payoffs, and balances.
Copy of the most recent statement from lenders indicating, mortgages (including second mortgages), monthly payments, loan payoffs, and
balances.
Authorized Representative Declaration (Form 151), if applicable.
Other attachments as listed on the forms.
Mail all forms, schedules, supporting documentation and initial offer payment of $100 or 20% of the offer, whichever is greater, to:
Michigan Department of Treasury
Offer in Compromise
PO Box 30190
Lansing, MI 48909
You may also submit your initial offer payment online at www.michigan.gov/collectionseservice.
Failure to include ALL requested documents may result in your offer being rejected or the processing of your offer delayed.
Michigan Department of Treasury
5181 (Rev. 09-17), Page 1
MICHIGAN Offer in Compromise
Issued under authority of Public Act 122 of 1941 and Public Act 240 of 2014.
To submit an Offer in Compromise, the following must be true:
• Thetaxpayermusthaveledrequiredreturnsforalltaxperiods.
• ThetaxpayermusthavebeenissuedanalassessmentbytheMichiganDepartmentofTreasuryandtheopportunity
to contest and appeal the tax assessment must have expired.
• The taxpayer must have no open bankruptcy proceedings.
You must include the initial offer payment of $100.00 or 20% of your offer, whichever is greater, with your Offer in
Compromise or pay online at www.michigan.gov/collectionseservice.
PART 1: TAXPAYER INFORMATION
INDIVIDUAL TAXPAYER
Filer’s First Name M.I. Last Name Social Security Number
If a Joint Offer, Spouse’s First Name M.I. Last Name Spouse’s SSN
Filer’s Telephone Number Spouse’s Telephone Number
Address City State ZIP
Mailing Address (If Different from Above) City State ZIP
BUSINESS TAXPAYER
Business Name (if business assessments are included in the offer)
FEIN, ME or TR Number Telephone Number
Address City State ZIP
Mailing Address (If Different from Above) City State ZIP
PART 2: REASON FOR OFFER
I have received an accepted federal offer in compromise.
Complete and attach the OIC Schedule 1 — Information Supporting a Request for a Michigan Offer in Compromise Based on Receipt of a
Federal Offer in Compromise(Form5182),andincludealldocumentsrequestedintheinstructions.
I am unable to pay the tax. (See instructions for more information on doubt as to collectability.)
Complete and attach the OIC Schedule 2A (Individuals) — Collection Information Statement for an Offer in Compromise Based on Doubt as to
Collectability (Form 5183) or OIC Schedule 2B (Businesses) — Collection Information Statement for an Offer in Compromise Based on Doubt
as to Collectability(Form5184)asapplicable,andincludealldocumentsrequestedintheinstructions.
I do not believe I owe the tax. (See instructions for more information on doubt as to liability.)
Complete and attach the OIC Schedule 3 — Offer in Compromise Based on Doubt as to Liability (Form 5185), and include all documents
requestedintheinstructions.
FOR TREASURY OFFICE USE ONLY
Date Offer in Compromise Payment Received Amount of Initial Offer in Compromise Payment
Continue on Page 2
Reset Form
5181, Page 2
Social Security Number,
FEIN, ME or TR Number
PART 3: OFFER AND PAYMENT TERMS
Fillinthetotalofferamount,theinitialofferpaymentamountincludedwiththisOfferinCompromiserequest,andtheremainingbalancebelow.Then
select the proposed method of payment of the remaining offer balance if the Offer in Compromise is accepted.
You MUST include an initial offer payment of 20% of the total offer amount or $100, whichever is greater. This is a nonrefundable payment that will
be applied to the outstanding balance of the tax debt owed. All payments must be in U.S. dollars. Do not send cash. Do not combine with any other tax
payments, as this may delay processing of your offer. (See instructions for a mailing address and other payment details.)
Calculating Initial Offer Payment and Remaining Offer Balance
1. Total Offer in Compromise amount ........... 1.
$
This is the total offer to compromise.
2. Initial Offer Payment. Enter 20% of the
Total Offer in Compromise amount from
Line 1 or $100, whichever is greater ...... 2.
$
This nonrefundable initial offer must be included
with the Offer in Compromise. (See “Initial Offer
Payment Method” below.)
If the Offer in Compromise is accepted, the
3. Remaining Offer Balance. remaining offer balance must be paid in a lump sum
Subtract line 2 from line 1. ........................ 3.
$
or via installment.
Initial Offer Payment Method
Check if the initial offer payment from line 2 is included with this Offer in Compromise.
Check if the initial offer payment from line 2 was made online at www.michigan.gov/collectionseservice, and enter payment amount, the
14-digitconrmationnumberfromthepaymentreceipt,andpaymentdatebelow.
Payment Amount ConrmationNumber Date
Remaining Offer Balance Payment
Lump sum — Check if payment of the remaining balance will be made within 30 days of the date the Offer in Compromise is accepted.
NOTE: Failure to make the lump sum payment within 30 days of the date of acceptance of the offer may result in the Offer in Compromise
being revoked and the entire compromised tax debt reinstated.
Installment plan of 5 (or fewer) months — Check if payment of the remaining offer balance will be made over 5 or fewer
monthsfromthedatetheOfferinCompromiseisaccepted.Thepaymentsmaybeinunequalamounts,butthetotalmustbeequaltothe
remaining offer balance calculated in line 3 above. Complete the table below detailing the amount of each payment.
Installment Details for Payment of 5 (or Fewer) Months
Amount of payment 1 $ payable within 30 days after acceptance
Amount of payment 2 $ payable within 60 days after acceptance
Amount of payment 3 $ payable within 90 days after acceptance
Amount of payment 4 $ payable within 120 days after acceptance
Amount of payment 5 $ payable within 150 days after acceptance
Failure to make the monthly payments agreed to may result in the Offer in Compromise being revoked and the entire tax debt reinstated.
Installment plan of 6 months or more — Check if payment of the remaining balance will be made over a period of 6 months or
more after the date the Offer in Compromise is accepted. You should pay the remaining balance in as short a time as reasonably possible,
and generally not more than 24 months past the date the Offer in Compromise is accepted. Treasury may permit a payment period of greater
than24monthsifcircumstancessupportalongerperiodoftime.Thepaymentsmustbeinequalamounts.Completethetablebelowdetailing
the amount of each payment, the date of each month that payment will be due, and the number of months needed to complete all payments.
Installment Details for Payment of 6 Months (or More)
Amount to be paid each month Date of each month the payment will be due Total number of months
Failure to make the monthly payments agreed to may result in the Offer in Compromise being revoked and the entire tax debt reinstated.
Continue on Page 3
5181, Page 3
Social Security Number,
FEIN, ME or TR Number
PART 4: SOURCE OF FUNDS
Indicatewhereyouwillobtainthefundstopayyouroffer.Bespecicastothesourceandtheamount.Forexample,ifborrowingfromfamilyorfriends,
obtainingaloanfromabankorlender,orwithdrawingfromorliquidatinga401(K)orIRAaccount,providedetailedinformationregardingthesource
and the amount.
PART 5: OFFER TERMS AND CONDITIONS
NOTE: In the following agreement, the pronoun “we” may be assumed in place of “I” when there are joint liabilities
and both parties are signing this Offer in Compromise.
By submitting this offer, I have read, understand and agree to the following terms and conditions:
a) I voluntarily submit all payments made on this offer.
b) Treasury will apply the amount paid with this offer to the outstanding balance of the tax debt owed. Treasury will not
return or refund the amount paid with this offer whether the offer is accepted or rejected, or if I withdraw the offer. The
date Treasury receives the offer remittance will be considered the date of payment.
c) Treasury will keep all payments and credits made, received, or applied to the total original tax debt before the Offer in
Compromise is received by Treasury. None of the payments or credits received by Treasury prior to the submission of the
offer may be included as part of the offer amount.
If I currently have an approved installment agreement with Treasury and am making installment payments, I may stop
making those installment payments when I have been notied that my offer has been received and is pending review. If my
offer is rejected my installment agreement with Treasury will be reinstated with no additional fee, and I must resume the
installment payments under the terms and schedule of the installment agreement.
d) I remain responsible for the full amount of the tax debt, unless and until Treasury accepts the offer in compromise in
writing and I have met all of the terms and conditions of the offer in compromise.
e) Any compromise with Treasury is subject to continuing review by Treasury. Treasury may revoke any compromise made
and may reestablish the full compromised tax debt, plus any accrued interest and penalty, without regard to any statute of
limitations that otherwise may apply if any one of the following occurs:
○ Treasury determines that I concealed from Treasury any property, assets or income to induce a compromise.
○ Treasury determines that I, with the intent to mislead, withheld, destroyed, mutilated, or falsied any book,
document, or record or made a false statement relating to my or another person’s estate or nancial condition to induce a
compromise.
○ I fail to comply with any of the terms and conditions relative to the Offer in Compromise or fail to le subsequent
required returns and pay subsequent nal tax liabilities within 20 days after Treasury issues a notice and demand to le
or pay the tax.
If Treasury revokes an Offer in Compromise, the amount of the compromised tax debt will become due and payable, and
Treasury may immediately undertake all actions authorized by law to collect the remaining balance of the tax debt.
f) Treasury will not levy against property to collect the tax debt sought to be compromised while the offer in compromise
is pending review unless Treasury determines that the offer is intended to delay collection of the tax debt or Treasury has
issued a jeopardy assessment under MCL 205.26.
Continue and sign on Page 4
5181, Page 4
Social Security Number,
FEIN, ME or TR Number
PART 5: OFFER TERMS AND CONDITIONS — CONTINUED
g) I may not request an informal conference with Treasury or contest in any tribunal or court Treasury’s rejection of my offer
in compromise or the amount of any accepted offer in compromise.
h) Interest on any unpaid tax debt shall continue to accrue until paid. Interest shall be calculated at the annual rate of interest
applicable to unpaid Michigan tax deciencies, as set forth in section 23 of the Revenue Act, MCL 205.23, and in Revenue
Administrative Bulletin 2013-5, and subsequent Revenue Administrative Bulletins that revise annual interest rates.
i) Except for the availability of Treasury’s independent administrative review, a rejection by Treasury of an offer in
compromise is nal and not subject to further challenge or appeal to any tribunal or court.
j) Any compromise entered into with Treasury shall be placed on le with Treasury, and a written report outlining the basis
for the compromise and, at a minimum, all of the following information, will be published on Treasury’s Web site:
○ The amount of tax assessed;
○ The amount of interest or assessable penalty imposed by law;
○ The terms of the compromise and the amount actually paid in accordance with the terms of the compromise; and
○ The grounds for the compromise.
Treasury by statute may be required to disclose my return information to members of the general public to the extent
necessary to permit inspection of the accepted offer in compromise relating to the liability for the tax imposed.
PART 6: TAXPAYER CERTIFICATION
Under penalty of perjury, I declare that I have examined this offer, including accompanying forms, schedules and
statements, and certify to the best of my knowledge and belief, it is true, correct and complete.
Taxpayer’s Signature Date
Signature of Taxpayer’s Spouse Date
Business Taxpayer: Authorized Signature Date
Authorized Signer’s Name (Print or Type) Title/Position Telephone Number
PART 7: THIRD PARTY DESIGNATED REPRESENTATIVE
By checking this box, I authorize the Michigan Department of Treasury to discuss with and to provide a copy of any papers or correspondence
relatingtothisOfferinCompromisetoathirdpartydesignatedrepresentativeidentiedbelow.
NOTE:ThetaxpayerisrequiredtocompleteandletheAuthorized Representative Declaration (Power of Attorney) (Form 151).
Designee’s Name Telephone Number
Michigan Department of Treasury
5184 (Rev. 10-16)
OIC Schedule 2B (Business) — Collection Information Statement
for an Offer in Compromise Based on Doubt as to Collectability
Issued under authority of Public Act 122 of 1941 and Public Act 240 of 2014.
A taxpayer requesting a Michigan Offer in Compromise based on Doubt as to Collectability must submit the following
items before their submission can be reviewed and be considered complete:
You must include all applicable attachments listed below.
A current prot or loss income statement covering at least the most recent 24 month period.
Record of ofcer compensation paid, including IRS Form 1125-E Compensation of Ofcers.
If an asset is used as collateral on a loan, include copies of the most recent statement from lender(s) indicating monthly payments, loan payoffs,
and balances.
Copies of the most recent statements from lenders on loans, mortgages (including second mortgages), monthly payments, loan payoffs, and
balances.
Copies of the most recent statement of outstanding notes receivable.
If you would like to designate a third party representative, attach an Authorized Representative Declaration (Power of Attorney), (Form 151).
PART 1: BUSINESS INFORMA
TION
Business Name/DBA FEIN, ME or TR Number
Street Address City State ZIP
Mailing Address (if different from above or Post Ofce Box number) City State ZIP
County of Business Location Primary Contact Number Secondary Contact Number Fax Number
Description of Business
Does the business engage in e-commerce? Business Web Site
Yes No
Is the business located at a residence?
Yes Ye
, if under bankruptcy court jurisdiction
s No
Is this business a state contractor? Does the business use a payroll service provider?
No s No Yes No
Has business been located outside the U.S. for at least 6 months in the last 10 years? Does the business have any funds being held in trust by a third party?
Yes No Yes No
Is this business currently under bankruptcy court jurisdiction? Case number
Ye
PART 2: ADDITIONAL INFORMATION REGARDING FINANCIAL CONDITION
Provide information on court proceedings, bankruptcies led or anticipated, transfers of assets for less than full value and changes in market conditions,
etc., that impact the nancial condition of the business. Include information regarding company participation in trusts, estates and prot sharing plans,
etc. Attach any copies of a DBA or Corporation lings as well as the most current Michigan Annual Report (MAR). Include your business name and
FEIN on all additional documents attached to this form.
Continue on Page 2
5184, Page 2
FEIN, ME or TR Number
PART 3: ASSET AND LIABILITY ANALYSIS
Attach the most current statement for each type of account, such as checking, savings, money market, online accounts, investment accounts, and life
insurance policies that have a cash value. Also, include statements of mortgages (including second mortgages), monthly payments, loan balances,
and accountant’s depreciation schedules, make/model/year of vehicles and current value of business assets. Asset value is subject to adjustment by
Treasury based on individual circumstances. Enter the total amount available for each of the following.
* Loan Balance: For certain items in Part 3, “Loan Balance” refers to an amount owed to pay back a loan.
BUSINESS CASH/BANK ACCOUNTS
Type of account
Checking Savings Money Market/CD Online Account Stored Value Card Cash on Hand
Financial Institution Name Account Number Account Balance/Value
Type of account
Checking Savings Money Market/CD Online Account Stored Value Card Cash on Hand
Financial Institution Name Account Number Account Balance/Value
If attaching a separate sheet listing additional bank accounts, record the total of those accounts here.
INVESTMENT ACCOUNTS
Type of account *Loan Balance
Stocks Bonds Other _____________________________
alue Financial Institution Name Account Number Current Market V
Type of account *Loan Balance
Stocks Bonds Other _____________________________
Financial Institution Name Account Number Current Market Value
If attaching a separate sheet listing additional investment accounts, record the total of the current market value of those accounts here.
Do you have notes receivable?
Do you have accounts receivable, including e-payment, factoring companies, and any bartering or online auction accounts?
Yes No Yes No
If yes, attach current listing which includes If yes, attach a list of names, age and amount of the account(s) receivable.
name, age & amount of note(s) receivable.
BANK CREDIT AVAILABLE (LINES OF CREDIT, ETC.)
Name of Institution Credit Limit Amount Owed Credit Available
Address City State ZIP Monthly Payments
Name of Institution Credit Limit Amount Owed Credit Available
Address City State ZIP Monthly Payments
Check here if listing additional bank credit on an attached document. The lines below must reect combined totals of ALL bank credits.
Total Credit Limit Total Amount Owed Total Credit Available Total Monthly Payments
Continue on Page 3
RS
nship
5184, Page 3
FEIN, ME or TR Number
PART 3: ASSET AND LIABILITY ANALYSIS (CONTINUED)
CASH VALUE OF LIFE INSURANCE POLICIES
Name of Insured Title of Insured Insurance
Policy Number Type Face Amount Available Loan Value
Name of Insured Title of Insured Insurance
Policy Number Type Face Amount Available Loan Value
If attaching a separate sheet listing additional life insurance policies, record the combined balance of those policies here.
REAL ESTATE
Property Address City State ZIP
City
County Country Date Purchased Date of Final Payment
Description of Property Ownership (mortgage, land contract) Current Market Value *Loan Balance
Property Address State ZIP
County Country Date Purchased Date of Final Payment
Description of Property Ownership (mortgage, land contract) Current Market Value *Loan Balance
If attaching a separate sheet listing additional real estate, record the combined current market value of that real estate here.
LOANS FROM THE BUSINESS TO PROPRIETOR, PARTNERS, OFFICERS, SHAREHOLDERS OR OTHE
Name of Loan Recipient Relatio
Payoff Date Status Amount Due
Name of Loan Recipient Relationship
Payoff Date Status Amount Due
Name of Loan Recipient Relationship
Payoff Date Status Amount Due
If attaching a separate sheet listing additional loans from the business, record the combined amount due on those loans.
Continue on Page 4
5184, Page 4
FEIN, ME or TR Number
PART 3: ASSET AND LIABILITY ANALYSIS (CONTINUED)
BUSINESS VEHICLES — Complete if owning or leasing a vehicle
Year Make License Number Vehicle ID Number Value Balance Owed
Year Make License Number Vehicle ID Number Value Balance Owed
If attaching a separate sheet listing additional motor vehicles, record the combined value of those motor vehicles here.
OTHER BUSINESS ASSETS
Enter information about other business assets, including machinery, equipment, merchandise inventory and other assets. Be specic. If needing more
space than provided below, attach a separate sheet listing additional assets. Include your business name and FEIN on all attachments.
Asset Current Market Value *Loan Balance
Asset Current Market Value *Loan Balance
Asset Current Market Value *Loan Balance
Asset Current Market Value *Loan Balance
Asset Current Market Value *Loan Balance
Asset Current Market Value *Loan Balance
PART 4: CERTIFICATION
Under penalty of perjury, I declare that I have examined this information, including accompanying documents, and to the best of my knowledge it is
true, correct, and complete.
Authorized Signature for Tax Matters Date
Authorized Signer’s Name (Print or Type) Title/Position Telephone Number
Authorized Signature for Tax Matters Date
Authorized Signer’s Name (Print or Type) Title/Position Telephone Number
Continue on Page 5
5184, Page 5
FEIN, ME or TR Number
PART 5: INDIVIDUAL ASSESSMENTS RELATING TO DOUBT AS TO COLLECTABILITY (BUSINESS)
List all outstanding tax assessments to be considered in the Offer in Compromise as they apply to doubt as to collectability. Use
additional copies of this page if needed and submit with the Offer in Compromise.
Use assessment numbers and related information from the most recent Final Assessment (Bill for Taxes Due) notice or the most recent
Final Demand notice received from the Michigan Department of Treasury, Ofce of Collections. Your assessment numbers can be
located by looking at the “ASSESSMENT NUMBER” column of any correspondence received in reference to your collections account.
Valid assessment numbers are 7 characters in length and begin with a letter.
ASSESSMENT NUMBER TAX TYPE TAX YEAR/PERIOD BALANCE DUE
Total Balance Due. Enter here the total of all lines in the Balance Due column below. If multiple pages are
included, this line on each copy of the page will reect the total for all pages.
Complete and attach additional copies of this page if needed.
Instructions for Form 5181
Michigan Offer in Compromise
An Offer in Compromise
Offer based on doubt to collectability – individual or
sole proprietor. If you are unable to pay the tax debt in full,
An offer in compromise (offer) is an agreement between you
complete Form 5181, Offer in Compromise, and Form 5183,
(the taxpayer) and the Michigan Department of Treasury
Schedule 2a (Individuals) – Collection Information Statement
(Treasury) that settles a tax debt for less than the full amount
for an Offer in Compromise, and provide all requested
owed.
documents and information. This will be used to evaluate
whether your offer is appropriate for compromise based on
Eligibility
your assets, liabilities, income, expenses, and future earning
Before submitting an offer, you must:
potential.
• have led all tax returns that it is legally required to le;
Offer based on doubt to collectability – business. If your
business is unable to pay the tax debt in full, complete Form
• have been assessed for the tax liabilities included in the
5181, Offer in Compromise, and Form 5184, Schedule 2b
submitted offer in compromise;
(Business) — Collection Information Statement for an Offer
• no longer have the opportunity to contest the assessed tax
in Compromise, and provided all requested documents and
liability in informal conference; and appeals of the assessed
information. This will be used to evaluate whether your offer
tax liability to the Michigan Tax Tribunal or a court must have
is appropriate for compromise based on your business assets,
expired; and
liabilities, income, expenses, and future earnings potential.
• not be in an open bankruptcy proceeding.
NOTE: A business is dened as a corporation, partnership,
If any of these circumstances do not exist, you are ineligible
limited liability company, limited liability partnership or
for consideration of an offer in compromise.
any business entity that is operated as other than a sole-
proprietorship.
How to submit an offer
NOTE: If your offer is based on more than one ground
You must complete and le Form 5181, Michigan Offer in
(e.g., doubt as to liability and doubt as to collectability) the
Compromise, and the required Schedules applicable to the
applicable Schedules and required documents for both forms
grounds for submitting your offer and submit all required
must be submitted with the offer.
documents and information supporting your offer.
Joint and separate tax liability. If you have joint liability
All offers require payment of a non-refundable initial offer
with your spouse and one of you also has separate liability, you
payment of $100.00 or 20% of the offer amount, whichever is
and your spouse will need to send in one Form 5181 with the
greater.
required Schedules for the joint liability, and a second Form
5181, with the required Schedules, for the separate liability.
Grounds for submitting an offer
Individual and business liability. If you have both individual
Offer based on doubt as to liability. If you have a legitimate
and business liability that you wish to compromise, you will
doubt that you do not owe part or all of the tax liability,
need to send in one Form 5181, with the required Schedules,
complete Form 5181, Michigan Offer in Compromise, and
for the individual liability, and a second Form 5181, with the
Form 5185, Schedule 3 — Doubt as to Liability in an Offer in
required Schedules, for the business liability.
Compromise.
Include an explanation of why you do not owe all or any part of
Offer Evaluation
the tax debt and provide any supporting documentation.
Treasury may accept or reject your offer, or determine an
Offer based on receipt of a federal offer in compromise.
amount that Treasury would consider an acceptable offer in
If you have received a federal offer in compromise from the
compromise if submitted.
Internal Revenue Service (IRS), complete Form 5181, Offer in
Submitting an offer does not ensure that the Treasury will
Compromise, and Form 5182, OIC Schedule 1 — Information
accept it.
supporting a Michigan offer in compromise, based on an
accepted federal offer in compromise.
Accepting an offer. If your offer is accepted, Treasury will
notify you and any designated representative you identify by
Proof of acceptance of a federal offer in compromise must be
mail.
included with your submission.
Default on an accepted offer. If you default on the terms of an
NOTE: Only an assessed tax liability for individual income
accepted offer, your compromise may be revoked and you will
tax, under MCL 206.1 to 206.532, or for corporate income tax,
be responsible for payment of the full amount of your assessed
under MCL 206.601 to 206.699, is eligible for compromise on
tax debt, including any additional interest and penalty accruals
this ground.
from the date of the original assessment.
5
Rejecting an offer. If your offer is rejected, Treasury will
Other Important Facts
notify you and any designated representative you identify
by mail. You may request that a rejected offer be reviewed
Penalties and interest on the tax debt will continue to accrue
by an independent administrative reviewer within Treasury
during the offer evaluation process.
by submitting Form 5186, Offer in Compromise Request for
The law requires Treasury to make certain information from
Independent Administrative Review of Rejection, within 30
accepted offers available for public inspection and review,
days after the rejection.
including the following:
Mail your request for an independent administrative review to:
• the amount of tax assessed a taxpayer;
Michigan Department of Treasury
• the amount of interest or penalty imposed on the assessed
Ofce of Legal Affairs
taxpayer;
PO Box 30716
• the terms of the accepted compromise and the amount
Lansing MI 48909
actually paid in accordance with the terms of the compromise;
Rejected offer may not be appealed. A rejected offer in
• the grounds for the compromise; and
compromise and any afrmance of a rejection as a result of an
• any information regarding a taxpayer’s return necessary to
independent administrative review are nal and not subject to
permit public inspection of the accepted compromise.
further challenge or appeal to any tribunal or court.
NOTE: The initial offer payment paid with the submission
Where to Send Your Offer
of an offer is not refundable regardless of whether the offer is
Make your check payable to “State of Michigan — Offer In
accepted or rejected. and will be applied towards the tax debt.
Compromise” and write your collections account number
Paying For Your Offer
and assessment number(s) on the front of your check. Mail
your payment, forms, initial offer payment and all applicable
You must select a payment option and include the initial offer
documents to:
payment of $100 or 20% of your offer, whichever is greater,
Michigan Department of Treasury
with your offer. The amount of your offer Treasury may
Offer in Compromise
consider appropriate will depend on the total amount of the
PO Box 30190
offer and which of the following payment options you choose:
Lansing MI 48909
Lump Sum Payment: This option requires that the remaining
balance of the offer after applying the initial offer payment is
paid in full within 30 days after an offer is accepted.
Periodic Payment: This option requires that the remaining
balance of the offer after applying the initial offer payment
is paid within ve months of the date the offer is accepted, in
accordance with the accepted offer terms.
Installment Plan: This option requires that the remaining
balance of the offer after applying the initial offer payment is
paid within six to 24 months of the date the offer is accepted,
accordance with the accepted offer terms.
NOTE: If you are planning to use your retirement savings
from an IRA or 401(k) plan, you may have future tax liabilities
owed as a result.
NOTE: Lump sum payments and periodic payment plans of
ve months or less will not be subject to a recorded state tax
lien, provided that a state lien was not already in place on the
subject property.
Installment plans of six to 24 months, however, will be subject
to a recorded state tax lien on any real and personal property.
NOTE: Any receipt of funds by Treasury, before your offer is
submitted or any offset to which Treasury is entitled, cannot be
considered as part of, or payment towards, any part of an offer,
including the initial offer payment of $100 or 20% of the offer,
whichever is greater.
6
Instructions for Form 5184
Schedule 2B — Collection Information Statement for an Offer in Compromise
Based on Doubt as to Collectability Instructions
Who May Submit an Offer in Compromise Based
• Real Estate – Attach a copy of the most recent statement
on a Doubt as to Collectability
from lenders on loans, mortgages (including second mortgages)
showing the monthly payments, loan payoffs, and balances.
You may submit an offer in compromise based on doubt as to
• Loans/Receivables – Attach a list of all accounts receivable
collectability if you meet the eligibility requirements (outlined
showing the payer, amount due, age and status of each account
in the Offer in Compromise instructions) and both of the
• Vehicles — Attach a copy of the most recent statement
following exist:
from lenders including: monthly payments, loan payoffs, and
1) t he amount of the offer of payment is the most that can be
balances.
expected to be paid or collected from your present assets
• Other Assets – Attach a list of all business equipment,
or income; and
ofce furniture and other business assets including the fair
2) you do not have reasonable prospects of acquiring
market value for each and an accountant’s depreciation
increased income or assets within a reasonable period of
schedules, if applicable.
time that would enable you to satisfy a greater amount of
Part 5: Individual Assessments Relating To Doubt as to
the tax liability than the amount offered.
Collectability. List each outstanding tax assessment to be
Which Form to File
considered in the Offer in Compromise as they apply to doubt
as to collectability.
You must submit a completed Form 5181, Offer in
NOTE: All correspondence will be mailed to the mailing
Compromise, along with Form 5184, Schedule 2B (Business) –
address listed on Part 1, if it is different from the street address
Collection Information Statement for an Offer in Compromise
listed on Part 1.
Based on Doubt as to Collectability, with your offer in
compromise.
Completing Michigan Forms
NOTE: Your offer cannot be considered without submitting
Michigan Offer in Compromise Forms are available in a format
the collection information statement and the requested
that allows you to ll them out on your computer, print them
documents.
out, and mail them to the Department of Treasury. In some
Submitting an Offer in Compromise Based on
cases, the forms cannot be saved.
Doubt as to Collectability
• Print or type the information in the spaces provided.
In order to evaluate your offer in compromise, Treasury
• Stay within the lines when entering information in boxes.
must have a complete and accurate picture of your nancial
• Answer all questions fully and accurately. State that an
situation. Therefore, you must include with the submission all
item is not applicable with “N/A.” If the answer is none, write
the documentation and information requested by this Schedule
“none.”
and other information you wish for Treasury to consider in
• Enclose any additional explanations on a separate sheet.
reviewing the offer in compromise.
Write your collections account number at the top of each sheet
Gather your information. To calculate an offer amount,
of paper.
gather information about your nancial situation, including:
• Use black or blue ink. Do not use pencil, red ink, or felt tip
cash, investments, available credit, and assets and liabilities.
pens. Do not highlight information.
You must submit a current income (prot and loss) statement.
• If a form is multiple pages, all pages must be led.
NOTE: Remember to make additional copies of the completed
Instructions for Form 5184
forms for your records.
Instructions for Parts 1, 2 and 4 are contained within the form.
When You Have Finished
Part 3: Asset and Liability Analysis.
Assemble your forms and attachments and staple in the
• Business Cash/Bank Accounts/Investment Accounts/
upper-left corner. Do not staple your check for the initial offer
Line(s) of Credit – Attach a copy of the most current six (6)
payment to your forms.
months for each account.
Important Reminder: If you do not include all the required
• Life Insurance Policies – Attach a copy of all policies that
attachments with your offer, your offer may be rejected or
name the business as a beneciary or partial beneciary.
consideration of it or delayed. Do not send the originals of your
• Safety Deposit Boxes – Attach a list of all items in the
documents as attachments.
box(es) including the fair market value for each and an
accountant’s depreciation schedules, if applicable.
6
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Business Doubt as to Collectability (Michigan)

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Completed 6 May 2021

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