# Justice Manual § 4-3.210: Compromising Claims Against a Going Business Concern

> Federal · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/JM_S4-3.210

## Section

- **Citation:** Justice Manual § 4-3.210
- **Heading:** Compromising Claims Against a Going Business Concern
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** DOJ Justice Manual / Title 4: Civil / 4-3.000 - Compromising And Closing / Justice Manual § 4-3.210

## Text

If a compromise with a going business concern necessitates the acceptance of payments over a period of time, the United States Attorney should obtain adequate security for deferred payments. It is also generally advisable for the United States Attorney to require a waiver of any and all claims which such a business concern has against the United States, including rights under the net operating loss carry forward and carry back provisions of the Internal Revenue Code, at least insofar as these are affected by the compromise proposal. In some situations, it may be advisable to require written consent for the audit of the concern's books and records. Consideration should also be given to having an independent appraisal of business assets as "forced sale" and "fair market" value, conducted at the concern's expense by an appraiser whose selection is subject to the approval of the United States Attorney. The United States Attorney should not accept a percentage of net profits in settlement or partial settlement of a claim. Such arrangements are speculative at best; policing is difficult; and there are too many ways in which the affairs of the debtor concern can be manipulated to avoid, minimize, or postpone realization of a net profit. Corporate stock should generally not be accepted in settlement or payment of a claim in favor of the United States. Managing such stock holdings places unusual burdens on client agencies. Letters of credit provide an excellent method for securing payment.

[updated April 2018]

## Nearby sections

- [Justice Manual § 4-3.100 Pursuit of Claims Against Individuals](https://www.frixlaw.com/law-library/statutes/JM_S4-3.100.md)
- [Justice Manual § 4-3.110 Delegations of the Attorney General's Authority to Compromise and Close](https://www.frixlaw.com/law-library/statutes/JM_S4-3.110.md)
- [Justice Manual § 4-3.120 General Redelegation of the Attorney General's Authority to Compromise and Close](https://www.frixlaw.com/law-library/statutes/JM_S4-3.120.md)
- [Justice Manual § 4-3.200 Bases for the Compromising or Closing of Claims Involving the United States](https://www.frixlaw.com/law-library/statutes/JM_S4-3.200.md)
- [Justice Manual § 4-3.210 Compromising Claims Against a Going Business Concern](https://www.frixlaw.com/law-library/statutes/JM_S4-3.210.md)
- [Justice Manual § 4-3.220 Claims in Conjunction With Bankruptcy Code Proceedings](https://www.frixlaw.com/law-library/statutes/JM_S4-3.220.md)
- [Justice Manual § 4-3.230 Bases for Closing Claims Arising Out of Judgments in Favor of the United States by Returning Those Claims to the Client Agencies](https://www.frixlaw.com/law-library/statutes/JM_S4-3.230.md)
- [Justice Manual § 4-3.300 Memoranda by United States Attorney Explaining the Compromising or Closing of Claims Within the United States Attorney's Authority](https://www.frixlaw.com/law-library/statutes/JM_S4-3.300.md)
- [Justice Manual § 4-3.320 Memoranda Containing the United States Attorney's Recommendations for the Compromising or Closing of Claims Beyond His/Her Authority](https://www.frixlaw.com/law-library/statutes/JM_S4-3.320.md)
- [Justice Manual § 4-3.400 Consummation of Compromise of Claims of the United States—Generally](https://www.frixlaw.com/law-library/statutes/JM_S4-3.400.md)
- [Justice Manual § 4-3.410 Prohibition on Confidential Settlements](https://www.frixlaw.com/law-library/statutes/JM_S4-3.410.md)
- [Justice Manual § 4-3.412 Dismissal Where Suit Has Been Filed](https://www.frixlaw.com/law-library/statutes/JM_S4-3.412.md)
- [Justice Manual § 4-3.420 Consummation of Compromise of Judgments in Favor of the United States](https://www.frixlaw.com/law-library/statutes/JM_S4-3.420.md)
- [Justice Manual § 4-3.430 Payment of Compromises—Compromise Payable by Client Agency or Insurer](https://www.frixlaw.com/law-library/statutes/JM_S4-3.430.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/JM_S4-3.210. Check the current official text before relying on it. Not legal advice.