Offer in Compromise Program - DOF

Department of Finance


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New York City's Offer-in-Compromise Program

New York City’s Offer-in-Compromise program allows qualifying financially distressed taxpayers to settle their non-property tax debt for less than the full amount owed.

1. Who is eligible for an offer-in-compromise based on “doubt as to collectability”?

Individuals and businesses that are insolvent or discharged from bankruptcy may be eligible for an offer-in-compromise based on doubt as to collectability.

Offer-in-Compromise Qualifications Checklist

2. Can an offer-in-compromise be based on hardship?

The New York City Department of Finance cannot consider hardship or any other issue that is not related to its ability to collect from the taxpayer. Please note that the New York City Offer-in- Compromise Program requirements are different from the New York State and Internal Revenue Service offer-in-compromise programs.

3. How much will I have to pay with an offer-in-compromise?

The offered amount cannot be less than DOF could collect through legal proceedings. (For example, if a taxpayer has a tax liability of $20,000, has $15,000 in assets, and offers $5,000, the application will be rejected.)

Use the calculator below to see if the amount of your offer could be accepted under the applicable rules. Please note that this calculator is meant to serve only as a guide and does not guarantee that your offer will be accepted. Entering any information does not constitute an application or the submission of an offer. DOF will make a final decision based on your completed offer-in-compromise application and our associated investigation.

Insert your estimated assets and the amount of your offer in the calculator below.

Amount of Assets: Offer Amount:

How to Apply:

Submit the DOF Offer-in-Compromise program forms. You can click on the links below to download your forms
Form DOF OIC-4, Offer-in- Compromise for Liabilities Not Fixed and Final, and Subject to Administrative Review.
Form DOF OIC-4.1, Offer-in-Compromise for Fixed and Final Liabilities or
Form DOF OIC- 5, Statement of Financial Condition

If you are applying based on doubt as to collectibility for fixed and final liabilities (meaning, there is a docketed tax warrant), please complete and submit both Form DOF OIC- 4.1 and Form DOF OIC-5 along with supporting documents.

If you are applying based on doubt as to liability and collectibility for non-fixed and final liabilities (no docketed tax warrant), you must complete and submit Form DOF OIC-4 and Form DOF OIC-5.

If you are applying based on doubt as to liability for non-fixed and final liabilities, you must complete and submit Form DOF OIC-4.

Do I have to submit a payment with my application?

You do not have to include payment with your application. However, if you do, DOF will apply the payment toward your outstanding amount, regardless of the final determination of your offer-in-compromise.

How do I submit my application?

To submit your application, please follow the instructions provided in the application.

While Your Application Is Pending:

Submitting this application will not stay or suspend the docketing of tax warrants or further enforcement action.

You will receive an acknowledgement letter advising you that your application has been received.

You may receive a letter requesting additional information.

DOF will not review your application until the additional information is received. Your application will be considered withdrawn if the additional information is not received.

You may receive a monthly account statement with credits and balances due.

You must continue to file your tax returns and pay estimated taxes for periods not included in the offer in compromise application.

For additional information or questions concerning offers in compromise, please call the New York City Department of Finance Collections Division at (212) 440-5300 (and choose option #3) from 8:30 a.m. - 4:30 p.m., Monday through Friday.

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