No. Submitting an offer in compromise application does not automatically halt collection activity. However, the Department usually offers taxpayers a reasonable, short-term payment plan while the taxpayer’s application is being evaluated. To avoid levy actions, the taxpayer is strongly encouraged to contact Collection Services at 615-741-7071 to make payment arrangements.
If the taxpayer currently has an installment payment agreement, the taxpayer must continue to make payments under the terms of the agreement while the offer in compromise is pending.
If the offer is accepted, payments received while the application was pending will be applied to the compromised liability.
Failure to stay current on all filing requirements and make installment payments by the applicable due date could result in denial of the application.