The Philadelphia Department of Revenue understands that the pandemic has caused unusual financial stress to many taxpayers across our city. If you are struggling to keep up with your business taxes, we may be able to help.

Our COVID-19 business recovery, preferred, and standard payment agreements allow you reduce your tax debt every month. When a payment agreement is not enough to cover everything you owe, we now have a new program.

Our Offer in Compromise (OIC) program allows taxpayers to settle tax debts for less than what they owe. It is an offer you make to the Department of Revenue based on your true ability to take care of your business tax obligations.

Marco A. Muniz is our Deputy Revenue Commissioner for Collections. We talked to him about how the new program works and what options exist when you believe that you can never pay your debts in full.

What’s an Offer in Compromise?

An Offer in Compromise is when you ask to pay the City an amount less than the full tax debt owed. It is not an appeal, nor is it meant to erase your debt. Your offer should be realistic enough for the Department to consider. The goal is to find a compromise that works for you and the City.

Can anyone qualify for an Offer in Compromise? 

Anyone with a business tax obligation to the City may ask us for a compromise. But submitting an offer does not guarantee acceptance. We review requests case-by-case and take the following factors into account:

  • Your ability to pay, either in full or through a payment plan.
  • Your present income and expenses, and your future earning capacity.
  • Whether a compromise is in the best interest of the City.

If we find that you can pay your debts, either in full or through a payment plan, we will not accept your offer.

Some types of debts, such as Real Estate taxes and Water and Sewer charges, do not qualify for an Offer in Compromise. For a full list of OIC criteria, please visit Submit an Offer in Compromise to resolve your delinquent business taxes | Service | City of Philadelphia.

What documents do I need to submit? 

 Your request must include:

Keep in mind that you cannot submit more than one request for the same account(s) within 24 months.

What’s the best way to submit my OIC request?

We are currently accepting requests by mail. Here’s the address:

City of Philadelphia
Department of Revenue
Attn. Offer in Compromise Unit
1401 JFK Boulevard 2nd Floor,
Room 200 Philadelphia, PA 19102

How long does the Department take to decide? 

You can expect a decision from us within 90 days. Remember that submitting a request does not stop collection activity or change the payment requirements of an existing payment agreement. It also does not prevent your unpaid balances from incurring interest and penalties.

What if my offer is rejected? Can I appeal the decision?

 If rejected, you cannot appeal the decision. All decisions to accept or reject an OIC are at the City’s discretion and not subject to appeal.

If you need more information about this City program, feel free to email us at offersincompromise@phila.gov

Start your Philadelphia Offer in Compromise application today