Offer in Compromise of Liability Incurred under the Provisions of Title 26 U.S.C. Enforced and Administered by TTB; Collection Information Statements for Individuals and Businesses

The Internal Revenue Code (IRC) at 26 U.S.C. 7122 provides that the Secretary of the Treasury may compromise any civil or criminal case arising under the IRC, including tax liabilities, in lieu of civil or criminal action. Under that IRC authority, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations require persons who wish to make an offer in compromise for violations of the IRC provisions administered by TTB to use form TTB F 5640.1 to identify themselves, the alleged liability and its statutory or regulatory source, the reasons for making the offer in compromise, the amount of the offer, and any proposed payment plan. Also, if a respondent bases an offer in compromise on their inability to pay the alleged liability in full, TTB may require individuals and businesses to submit financial information documenting that inability using TTB F 5600.17 or TTB F 5600.18, respectively. The information required under this collection is necessary to protect the revenue as it allows TTB to determine the adequacy of the offer in compromise in relation to the alleged violations of the statutory provisions of the IRC and to develop a payment plan if the individual or business is unable to immediately pay an accepted offer in compromise in full.

The latest form for Offer in Compromise of Liability Incurred under the Provisions of Title 26 U.S.C. Enforced and Administered by TTB; Collection Information Statements for Individuals and Businesses expires 2028-06-30 and can be found here.

Offer in Compromise of Liability Incurred under the Provisions of Title 26 U.S.C. Enforced and Administered by the Alcohol and Tobacco Tax and Trade Bureau (Businesses)

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