Okla. Admin. Code § 710:1-5-86

Current through Vol. 42, No. 1, September 16, 2024

Section 710:1-5-86 - Review by Commission

(a)Unanimous vote required. A unanimous vote of the members of the Commission is required for approval of a Settlement Agreement.

(b)Discretionary act. The determination of settlement is within the sole discretion of the Commission.

(c)Facts and other considerations. In making its decision, the Commission will consider, but not be limited to, the following matters:

(1) The likelihood of collection of the debt;

(2) The amount of the debt;

(3) Efforts made by the Applicant to pay a part of the debt prior to filing an application for settlement;

(4) The taxpaying record of the Applicant;

(5) Applicant's current and possible future earning capacity;

(6) The portion of the tax itself which would be paid under the terms of the proposed Settlement Agreement;

(7) The composition of the balance of tax, penalty, and interest due;

(8) The percentage of the tax debt proposed to be settled;

(9) The Applicant's age and health;

(10) The Applicant's net worth;

(11) The acceptance by the Internal Revenue Service of an Offer in Compromise and the amount;

(12) The age of the debt;

(13) The existence of liens;

(14) Current operating status of any business;

(15) Bankruptcy status;

(16) The amount determined to be collectible. This amount is generally based upon the Commission's evaluation of the reasonable collection potential of the taxpayer's assets and revenue. The collectible amount is one factor used to determine if an offer is reasonable.

(17) Other liable parties;

(18) Whether tax debt due is a trust tax collected by Applicant but not remitted to the Commission;

(19) What other persons are liable;

(20) Whether the Applicant is located within Oklahoma or not;

(21) The accuracy and veracity of the Applicant's representations to the Commission;

(22) The recommendations of the Income Tax Accounts Division; and

(23) The expense and time expended in future collection efforts by the Commission on the Applicant's debt.

(d)Other circumstances which may be considered. In addition to the factors set out in (c) of this Section, the Commission may consider any other aggravating or mitigating circumstances contributing to the request for settlement, including, but not limited to:

(1) Good faith efforts made by taxpayer to comply with the tax laws of this state.

(2) Benefit received by taxpayer from nonpayment of the tax.

(3) Involvement of taxpayer in economic activity which gave rise to tax liability.

(e)No appeal of denial. The decision by the Commission to decline a proposed Settlement Agreement is final and is not appealable.

(f)Court approval required. If the amount of the tax liability to be abated exceeds Twenty-five Thousand Dollars ($25,000.00), the Settlement Agreement requires the approval of a judge of the district court of Oklahoma County.

(g)Resubmission of application. If a taxpayer has previously submitted an application for a Settlement Agreement and that application was not accepted, the taxpayer may apply at a later date if financial conditions have changed, or to submit additional information not previously provided for review by the Commission.

Okla. Admin. Code § 710:1-5-86

Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03; Amended at 23 Ok Reg 2802, eff 6-25-06

Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019

Amended by Oklahoma Register, Volume 38, Issue 23, August 16, 2021, eff. 9/1/2021