An offer in compromise with the Iowa Department of Revenue is a written agreement to settle an unpaid assessed debt for less than the total amount owed due to doubtful collectability or severe economic hardship. Access the Offer in Compromise Packet (96-130).
Do not use this application packet if you are applying for relief based on doubtful liability or any other reason than doubtful collectability or severe economic hardship. If you have a liability that you would like to offer to settle for an amount less than what is owed for another reason, refer to the Department’s information on Abatement.
General Information
- We will accept the offer in compromise if we believe it is in the State’s best interest.
- We will only compromise debt that has been assessed by the Department.
- You must complete and return the entire packet with certified funds (money order or cashier’s check) payment for the amount offered to the return address listed in the packet.
- If the offer is denied, you have the option to request that the payment offered either be returned or applied to your debt.
- Spouses or Responsible Parties can request to compromise their debt jointly or separately.
- You may include more information than requested by us.
- A similar offer in compromise that was approved by the IRS may or may not be approved by the Iowa Department of Revenue.
- When an offer in compromise is accepted, you waive the right to appeal or contest the amount of the debt and / or refund claims associated with this debt.
Questions?
If you have questions, please contact your assigned agent or collector.