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Code · CFR · Title 26 — Internal Revenue · Part 300 · § 300.3

§ 300.3. Offer to compromise fee.

394 words·~2 min read·/us/cfr/t26/s§ 300.3

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(a)Applicability. This section applies to the processing of offers to compromise tax liabilities pursuant to § 301.7122-1 of this chapter. Except as provided in this section, this fee applies to all offers to compromise accepted for processing.
(b)Fee.
(1)The fee for processing an offer to compromise submitted before April 27, 2020, is $186. The fee for processing an offer to compromise submitted on or after April 27, 2020, is $205. No fee will be charged if an offer is—
(i)Based solely on doubt as to liability as defined in § 301.7122-1(b)(1) of this chapter;
(ii)Made by a low-income taxpayer, that is, an individual whose income falls at or below the dollar criteria established by the poverty guidelines updated annually in the Federal Register by the U.S. Department of Health and Human Services under authority of section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (95 Stat. 357, 511) or such other measure that is adopted by the Secretary; or
(iii)Made by a low-income taxpayer, as described in section 7122(c)(3) of the Internal Revenue Code, and submitted after July 1, 2019.
(2)The fee will be applied against the amount of the offer, unless the taxpayer requests that it be refunded, if the offer is—
(i)Accepted to promote effective tax administration pursuant to § 301.7122-1(b)(3) of this chapter; or
(ii)Accepted based on doubt as to collectibility and a determination that collection of an amount greater than the amount offered would create economic hardship within the meaning of § 301.6343-1 of this chapter.
(3)Except as otherwise provided in this paragraph (b), the fee will not be refunded to the taxpayer if the offer is accepted, rejected, withdrawn, or returned as nonprocessable after acceptance for processing.
(4)No additional fee will be charged if a taxpayer resubmits an offer the Secretary determines to have been rejected in error or returned in error after acceptance for processing.
(c)Person liable for the fee. The person liable for the processing fee is the taxpayer whose tax liabilities are the subject of the offer.
(d)Applicability date. This section is applicable beginning April 27, 2020. [T.D. 9086, 68 FR 48787, Aug. 15, 2003, as amended by T.D. 9503, 75 FR 60320, Sept. 30, 2010; T.D. 9647, 78 FR 72018, Dec. 2, 2013; T.D. 9894, 85 FR 14572, Mar. 13, 2020]
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