Form OIC B-2 Virginia Department of Taxation
BUSINESS OFFER IN COMPROMISE: PENALTY WAIVER / DOUBTFUL LIABILITY
Please read the instructions carefully before completing this form.
Business Name
__________________________________________________________________________
Trading As __________________________________________________________________________
Address __________________________________________________________________________
__________________________________________________________________________
Email Address __________________________________________________________________________
Contact Name, Title, and Telephone Number ___________________________________________________
Virginia Account Number or Federal Employer Identication Number ________________________________
I/We submit this oer to settle the assessment(s) on the basis of (complete all elds that apply):
Request for waiver of penalty. Attach a detailed explanation.
Doubtful liability. Attach a detailed explanation.
Sales Tax for the period(s) _________________________________________________________________
Employer Withholding Tax for the period(s) ____________________________________________________
Corporation Income Tax or Pass-Through Entity for the period(s) ___________________________________
Other (specify) for the period(s) _____________________________________________________________
I/We oer to pay a total of $ ____________
Full Payment within ________days
Payments of $ _________ a month for _________ months
Other ___________________________________________________________________________
I/We hereby grant the power of attorney to act for the business entity with respect to this oer in compromise to:
Name
_______________________________________________________________________________
Address _______________________________________________________________________________
_______________________________________________________________________________
Telephone Number ____________________________ Fax Number _____________________________
Under penalties of law, the undersigned declare that this oer, including accompanying schedules and statements,
is true, accurate and complete, and grant authorization to verify any nancial data by use of a credit report. The
undersigned also agree to extend the statute of limitations for collection of the debts addressed in this oer for
a period of 60 days after the date that the Department issues its determination, including any reconsiderations.
Signature of Taxpayer
_________________________________________________ Date _______________
Printed Name of Taxpayer _______________________________________ Title _____________________
Signature of Taxpayer’s Representative ___________________________________ Date _______________
Attach all required documentation – see instructions
Va. Dept. of Taxation 3200011 Rev. 02/23
Instructions and Conditions for Filing an Oer in Compromise
What is an oer in compromise? An oer in compromise is a request to settle an assessment of tax, penalty,
and/or interest for less than the amount assessed. Section 58.1-105 of the Code of Virginia allows the Tax
Commissioner to settle an assessment through an oer in compromise under certain circumstances, such
as extenuating circumstances that prevented timely ling or payment, or in cases where the business can
demonstrate that it is not liable for the amounts assessed.
DO NOT USE THIS FORM IF YOU ARE SEEKING RELIEF BECAUSE OF FINANCIAL HARDSHIP. Use Form
OIC B-3, Business Oer in Compromise: Doubtful Collectibility, available on our website at www.tax.virginia.gov.
DO NOT FILE AN OFFER IN COMPROMISE IF YOUR BILL IS INCORRECT, unless you are disputing a
point of law. For routine matters, such as contesting late ling or verifying a payment, contact the Oce of
Customer Services at: (804) 367-8037 or P.O. Box 1115, Richmond, VA 23218-1115.
If you believe the assessment is erroneous based on an improper application of the law (as opposed to an
administrative error), you may le an administrative appeal pursuant to Sec. 58.1-1821. See Title 23 of the
Virginia Administrative Code 10-20-165 and the Virginia Taxpayer Bill of Rights for specic requirements and
time limitations for ling an appeal.
h You are not required to make a payment with your oer. If a check is submitted with the oer, it will be
deposited upon receipt. Depositing the check does not mean that the oer has been accepted.
h You must include a detailed explanation with your oer in compromise. For a request for waiver of penalty,
explain the circumstances that prevented timely ling and/or payment and provide copies of supporting
documentation of special circumstances, such as medical conditions, death of a responsible party, etc.
For doubtful liability, explain your position and provide supporting documentation, such as applicable
provisions of the law, or previous rulings of the Tax Commissioner under similar circumstances.
h Waiver of penalty. The Department of Taxation generally will not consider a request for waiver of penalty
in cases where the late ling or late payment was caused by the negligence or error of a professional tax
preparer. In addition, a good ling history is not a basis for waiver of penalty in and of itself.
h Waiver of interest. The Department of Taxation generally will not waive interest charges associated
with a tax liability unless the taxpayer can prove that doubtful liability or doubtful collectibility exists with
respect to the assessment(s).
h Your attorney, tax preparer, or other representative can submit an oer in compromise on your behalf.
Both you and your representative must sign the submitted form.
h You will receive a written response to inform you whether your oer has been accepted as oered,
accepted with changes, or denied. You must comply with the terms of acceptance, or the acceptance will
be voided. Although there is no right of appeal in the oer in compromise process, in the case of a denial
you may submit additional information for reconsideration.
Required Documentation:
• A letter of circumstance providing a complete explanation of the basis for the oer in compromise.
• Documentation to support claims of illness, injury, or other medical conditions related to the request for
relief.
• Documentation to support claims of extenuating circumstances, such as death, divorce, criminal activity,
or other legal actions related to the request for relief.
Mail the completed form and attachments to:
Tax Commissioner
Oer in Compromise
Virginia Department of Taxation
P.O. Box 2475
Richmond, VA 23218-2475
