§ 26-18-705 — Settlement or compromise of liability controversies

(a) The Secretary of the Department of Finance and Administration may enter into an agreement to compound, settle, or compromise any controversy relating to a state tax or any admitted or established tax liability as to any tax collectible under any state law when: (1) The controversy is over the amount of tax due; or (2) The inability to pay results from the insolvency of the taxpayer. (b) The secretary may waive or remit the interest, penalty, or certificate of indebtedness filing fees, or any portion of the interest, penalty, or certificate of indebtedness filing fees, ordinarily accruing or incurred by the secretary because of a taxpayer's failure to pay a state tax within the statutory period allowed for its payment: (1) If the taxpayer's failure to pay the tax is satisfactorily explained to the secretary; (2) If the failure results from a mistake by the taxpayer of either the law or the facts subjecting him or her to such tax; or (3) If the inability to pay the interest or penalty results from the insolvency or bankruptcy of the taxpayer. (c) (1) In settling or compromising any controversy relating to the liability of a person for any state tax for any taxable period, the secretary may enter into a written closing agreement concerning the liability. (2) When the closing agreement is signed by the secretary, it shall be final and conclusive, and except upon a showing of fraud or misrepresentation of a material fact, no additional assessment or collection shall be made by the secretary, and the taxpayer shall not file a protest of the assessment under § 26-18-404 , file a petition under the Independent Tax Appeals Commission Act, § 26-18-1101 et seq., or institute a judicial proceeding to recover such liabilities as agreed to in the closing agreement. (d) The secretary shall promulgate rules establishing guidelines for determining whether a proposed offer in compromise is adequate and is acceptable to resolve a tax dispute.

Legislative History

Amended by Act 2021, No. 593,§ 20, eff. 1/1/2023. Amended by Act 2021, No. 145,§ 1, eff. 7/28/2021. Amended by Act 2019, No. 315,§ 2944, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 3636, eff. 7/1/2019. Acts 1979, No. 401, § 24; A.S.A. 1947, § 84-4724; Acts 1999, No. 1126, § 5.