Missouri has statutory provision for offers in compromise (“OIC”), but there appear to be no standard process and DOR responds inconsistently to OICs currently.
Rev. Stat. §32.375 permits the director of revenue may, at the request of the taxpayer, consider the reasons for the taxpayer’s failure to pay the amounts in dispute, and abate all or any portion of any amount assessed or decide to not assess any such amount.
Rev. Stat. §32.378 provides that the director may agree to compromise any tax, interest, penalties or additions to tax assessed or collected on any of the following grounds:(1) Doubt as to liability; (2) Doubt as to collectibility; or(3) To promote effective tax administration (Collection of the full liability will result in severe economic hardship to the taxpayer or exceptional circumstances exist such that collection of the full liability will be detrimental to voluntary compliance by taxpayers).
Rev. Stat. §32.378 also extend the assessment and collection statutes of limitation: “5. If compromise of taxes is agreed upon, any statute of limitations applicable to the assessment and collection of the liability compromised shall be tolled during the period beginning on the date of the compromise and ending one year after the last payment is due pursuant to the agreement.”
Rev. Stat. §144.425 provides for offers in compromise of sales tax to not less than 75% and paid within 3 years.
A Department representative at Missouri Bar Tax Committee meeting indicated the Department was looking for offers of the tax amount or greater (compared to the IRS “reasonable collection potential”).
Under Mo. Rev. Stat. §32.378(6) the Director’s decision to reject or accept an offer in compromise is not subject to review by the AHC or any court. Meshack, Yourshack, & Abedtogo/MYA, LLC v. Director of Revenue, Mo. Admin. Hearing Commission, No. 14-1091 RS, 08/05/2014.
Missouri Department of Revenue Director’s rejection of offer in compromise was not reviewable
Under Mo. Rev. Stat. § 32.378(6) the Director’s decision to reject or accept an offer in compromise is not subject to review by the AHC or any court. Meshack, Yourshack, & Abedtogo/MYA, LLC v. Director of Revenue, Mo. Admin. Hearing Commission, No. 14-1091 RS, 08/05/2014.