Sec. 1. 36 MRSA §143, as amended by PL 1999, c. 708, §7, is repealed and the following enacted in its place:

§143. Compromise of tax liability and action

1.__Authorization.__The assessor may compromise a tax liability of any civil or criminal case arising under this Title prior to reference to the Attorney General's office for prosecution or defense, as specified in this section.

2.__Statement.__If a compromise is made by the assessor pursuant to this section, there must be available in the bureau a statement containing:

A.__The opinion of the general counsel for the bureau or the general counsel's designee explaining the reason for the compromise;

B. The amount of tax assessed;

C.__The amount of interest, any additional amount, addition to the tax or any assessable penalty imposed by law on the person against whom the tax is assessed; and

D.__The amount actually paid in accordance with the terms of the compromise.

The opinion of the general counsel of the bureau explaining the reason for the compromise under paragraph A is not required for the compromise of any civil case in which the unpaid amount of tax assessed, including any interest, any additional amount, addition to the tax or any assessable penalty, is less than $50,000.__However, such compromises are subject to continuing quality review by the assessor.

3.__Standards for evaluation of offers.__The assessor shall prescribe guidelines, procedures and forms for officers and employees of the bureau to determine whether an offer in compromise is adequate and should be accepted to resolve a dispute.

A.__The guidelines must establish minimum residual amounts that ensure that a taxpayer entering into a compromise has an adequate means to provide for basic living expenses.__ In establishing guidelines under this paragraph, the assessor shall develop and publish schedules of local allowances for basic living expenses.__The assessor may use schedules similar to those published by the Internal Revenue Service.