OAR 150-305-0190: Compromise of a Disputed Liability

(1) A disputed liability is one where the taxpayer sends written objection to a notice of deficiency, appeals a notice of assessment, or appeals a determination by the director of the Department of Revenue. (2) Compromise of a disputed liability cannot be accomplished by submitting a conditional partial payment. If a partial conditional payment is made in an attempt to compromise a disputed liability prior to a written compromise having been agreed upon, and the payment is inadvertently processed by the Department, the amount of the conditional partial payment shall be refunded with interest. A partial payment that is submitted without conditions and that does not purport to be in full satisfaction of the disputed liability may be retained by the department and applied against the disputed liability pending resolution of the dispute. (3) This rule doesn’t preclude settlement by negotiation and signing of a closing agreement. For compromise of an undisputed liability, see OAR 150-305-0090. See ORS 305.150 for closing agreements.