Sec. 5000.3. Procedure with respect to offers in compromise

(a) Form of offers.

An offer in compromise shall be filed on the forms prescribed by the Commissioner of Taxation and Finance. The forms are available from the department or on the department’s website. The compromise offer must be in addition to the total amounts previously paid, or collected, against the liability being compromised, if any. If the final payment on an accepted offer is contingent upon the immediate or simultaneous release of a tax lien in whole or in part, such payment must be remitted by means, acceptable to the Department of Taxation and Finance, that assures unconditional and final payment, such as certified check, bank check or postal money order.

(b) Stay of proceedings.

The filing of an offer in compromise shall not constitute the filing of a request for a conciliation conference or the filing of a petition for a hearing. The filing of an offer in compromise shall not (1) automatically operate to stay the collection of any tax liability, (2) constitute cause for postponement of a conciliation conference (see Part 4000 of this Title) or a hearing in the Division of Tax Appeals (see Part 3000 of this Title), or (3) suspend the running of the period of limitations for filing a request for a conciliation conference (see Part 4000) or a hearing (see Part 3000). However, enforcement of collection may be deferred if the interests of the Department of Taxation and Finance shall not be jeopardized thereby.

(c) Acceptance.

An offer in compromise shall be considered accepted only when the taxpayer making the offer is so notified in writing. As a condition to accepting an offer in compromise, the taxpayer may be required to enter into any collateral agreement or to post any security which is deemed necessary for the protection of the interests of the Department of Taxation and Finance. Further, as a condition for acceptance of an offer in compromise, the taxpayer must agree that the Department of Taxation and Finance may proceed with any appropriate collection procedures set forth in the Tax Law as if the Commissioner of Taxation and Finance had acquired an assessment no longer subject to administrative or judicial review. The commissioner or such person as may be designated by the commissioner may also impose any other conditions, qualifications or limitations for acceptance of an offer that he or she may deem appropriate for a particular case.

(d) Withdrawal or rejection.

An offer in compromise may be withdrawn by the taxpayer making the offer at any time prior to its acceptance. In the event an offer is rejected, the taxpayer making the offer shall be promptly notified in writing. Frivolous offers or offers filed for the purpose of delaying the collection of liabilities shall be immediately rejected.

(e) Requirement with respect to statute of limitations.

No offer in compromise shall be accepted unless the taxpayer waives the running of the statutory period of limitations on collection of the tax liability involved in the period during which the offer is pending, or the period during which any installment remains unpaid, and for one year thereafter.

(f) Limitation on number of offers.

Generally, a taxpayer may only make one offer in compromise under section 171, subdivision eighteeenth-a regarding a particular liability for a particular taxable period.