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Completing Form 5181L

Completing Form 5181L

OIC Based on Doubt as to Liability

Part 1 — Taxpayer Information

Determine if you are a business or an individual filing for an offer in compromise and fill out the corresponding section.

Part 2 — Offer and Payment Terms

Determine an offer amount by:

  1. identifying the total amount of debt owed;
  2. deciding the most you can afford to offer;
  3. calculating the initial payment of 20% of the total offer amount, or $100, whichever is greater; then
  4. subtracting the initial payment from the remaining offer balance, this is the remaining balance you will select payment terms for.

Determine the payment terms (how you will pay the remaining balance if the offer gets accepted by Treasury) by selecting one of the following:

  • a lump sum payment amount with the balance paid in full in 30 days;
  • equal, periodic payments with the balance paid in full within 5 months; or
  • an installment plan with monthly installments between 6 to 24 months.

NOTES

  • A state tax lien will be placed if you select to pay within 6 - 24 months.
  • Submission of an OIC does not suspend interest or penalties from accruing on the outstanding tax amount.
Part 3 — Explanation of Circumstances

Detail why you believe you are not liable for the outstanding assessments you identified in this offer. You must provide documentation to support why you believe you do not owe these assessments.

Part 4 — Michigan Assessments

List all assessments you are requesting to be compromised.

If you are unsure of what your assessment numbers are, you may:

  • review the most recent Final Assessment or Final Demand notice; or
  • call 517-636-5265.
Assessment numbers are 7 characters in length and begin with a letter. 
Part 5 — Sign and Submit

Read through the rest of the application, informing you of the offer’s terms and conditions, then sign the application.

Submit all application materials to:

Michigan Department of Treasury
Offer in Compromise
P.O. Box 30190
Lansing, MI 48909

You are not able to fax or e-file the OIC application at this time.

If multiple OIC reasons (doubt as to liability, doubt as to collectability, accepted OIC by the IRS) apply to your debt, you must submit separate applications with all required forms.

Treasury will notify you in writing when your submission is received, either acknowledging that it is eligible for further review or notifying you of the reason(s) it is ineligible.