Close

Tax News

Nebraska Offer in Compromise: What You Need to Know

Share this article...

Nebraska Offer in Compromise: What You Need to Know

An Offer in Compromise is an agreement between you and the State Government to settle your back taxes for less than you owe.

An Offer in Compromise is strictly based on numbers; basically, your income versus your expenses and the equity in your assets.

If you can prove to the State you do not have the ability to pay back your taxes in full before the Statute of Limitations expires, then you may be eligible to file an Offer in Compromise. However, it will depend on your Reasonable Collection Potential and how much time is left before Statute of Limitations on the debt expires.

 

Qualifying for an Offer in Compromise

To qualify for an OIC with the State of Nebraska, we find the following as stated in Nebraska Regulation Chapter 36-017:

An offer in compromise may be considered in situations where:

            An offer in compromise will resolve the liability, close the account, avoid additional time and expense in collection, or in situations where collection of the account cannot be accomplished by normal collection efforts; or

            The taxpayer does not have, and will not have in the foreseeable future, income, assets, or other means to pay the delinquency.

Circumstances where an offer in compromise could be considered include, but are not limited to: older unresolved accounts; corporate officer assessments; hardship cases; retired or limited income taxpayers; nonresident taxpayers; and over-assessed or canceled businesses.

 

Submitting Your Offer in Compromise

Much like the IRS and other states, you must submit all required supporting documents and failure to do so will result in your Offer being rejected. Their list of documents includes:

 

  • Contact the DOR to request the OIC form by calling: 800-742-7474
  • Income – Copies of paystubs, earnings statements, Social Security Administration benefit letters, pension statements, bank statements reflecting direct deposits, etc.
  • Expenses – Copies of Utility statements, credit card or loan billings, medical bills, etc.
  • Accounts – Copies of all statements for bank, retirement, and investment accounts.

 

 

Offer in Compromise Pros and Cons

The Pros of submitting an Offer to the State of Nebraska is they may allow your debt to be compromised and thereby removed.

The Cons are if the State rejects your Offer, it is not subject to administrative or judicial review.

PDF
Printable PDF

Have a Question About This Topic?

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the Terms of Use and Privacy Policy.

NEVER MISS A STORY.

Sign up for our newsletters and get our articles delivered right to your inbox.

 

Track Your Refund

 
Track Federal Refund Check Federal Amended Return Refund

Check your State Refund

Client Login

 

Refer a Friend

.