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STATE OF CALIFORNIA
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
Offer In Compromise Application
Corporations
Limited Liability Companies
❋
Partnerships
Trusts
Unidentified Business Organizations
❋ When the partner is not an individual
CDTFA-490-C REV. 4 (8-18)
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WHAT YOU SHOULD KNOW BEFORE PREPARING AN OFFER IN COMPROMISE
Are you an OIC candidate? Who qualifes?
The Offer in Compromise (OIC) program is for We will only process your OIC application if:
taxpayers or feepayers that do not have, and will • You no longer have a controlling interest or
not have in the foreseeable future, the income, association with the business that incurred the
assets, or means to pay their liability in full. It liability or a related business.
allows a taxpayer or feepayer to offer a lesser
• You are an active business with a fnal liability
amount for payment of a nondisputed fnal tax
that arose from transactions in which you did
liability on a closed-out account.
not receive tax or fee reimbursement.
Effective January 1, 2009, through January 1, 2023, • You are a consumer who accrued use tax.
the OIC program will extend to qualifed active • You are a successor that inherited the liability
businesses where the taxpayer or feepayer has not of your predecessor.
received tax or fee reimbursement for tax and fees
• You have fully completed the OIC application
owed to the state, to successors of businesses that
and provided all supporting documentation.
may have inherited tax liabilities of the predecessors,
and to consumers who incurred a use tax liability. When should offered funds be submitted?
A qualifed active business is an active business You will be notifed when your offered amount
that does not have, and will not have in the should be submitted. The funds will be held in the
foreseeable future, the income, assets, or means form of a noninterest bearing deposit. If your OIC
to pay their nondisputed California Department is denied, the full amount of your deposit will be
of Tax and Fee Administration (CDTFA) assessed refunded to you, or you may choose to apply the
liability in full, where the CDTFA fnds no deposit to your liability. Credit interest will not be
evidence that the taxpayer collected sales or use paid to you on the deposited amount if your offer
tax reimbursement, and the taxpayer has not is denied and subsequently refunded.
previously received a compromise.
Should I continue to make installment
Generally, we approve an OIC when the amount payments while my offer is being evaluated?
offered represents the most we can expect Yes. You are required to continue making timely
to collect within a reasonable period of time. payments as established in your Installment
Although each case is evaluated based on its Payment Agreement while your offer is being
own merit, we give the following factors strong considered. The CDTFA will strive to process
consideration in the evaluation: your offer and provide a decision within 180
• ability to pay days of receiving a completed application and
• equity in the entity’s assets documentation.
• present and future income
Will collection action be suspended while my
• present and future expenses
offer is being evaluated?
• potential for changed circumstances
In most cases, no new collection action will be
• concealment of assets or existence of fraud
taken while your offer is being evaluated. However,
Who should use this application? submitting an offer does not automatically suspend
If you are making an offer as a corporation, collection activity. If delaying collection activity
LLC, trust, organization, or a limited or general jeopardizes our ability to collect the amount you
partnership, please use this application. For an owe, we may continue with collection efforts.
individual or an individual of a partnership, you
should request the OIC package for individuals
(CDTFA-490) from CDTFA’s website or contact
your local offce. If you are making an offer as
an individual and another entity (corporation,
LLC, trust, or organization), both the individual
application and the corporation application should
be flled out respectively.
OFFER IN COMPROMISE APPLICATION 1
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The following documentation must be submitted with your Offer in Compromise Application or your
application may be returned as incomplete. Please submit copies only. We will not return any documents
that you send us. Additional documentation may be required and requested as the evaluation of the
Offer in Compromise proceeds.
CHECKLIST OF REQUIRED ITEMS FOR THE ENTITY MAKING THE OFFER
(Check only those boxes that apply. If it does not apply, please explain in Section 1.)
Verifcation of Income and Expenses
Year-to-date income and expense statements, cash fow statements, proft and loss statements, a
balance sheet, and any other related documents. If entity is subject to annual audit of its fnancial
statements, please submit audited fnancial statements.
Bank Information
Bank statements for savings and checking accounts for the last twelve (12) months. Final statement
for any accounts closed within that time. Investment account statements showing the value of
stocks, bonds, and mutual funds.
Current Lease or Rental Agreements
Include all lease agreements, including property where you are the lessor or lessee.
Real Property Information
Mortgage statements, escrow settlement statements, or copies of grant deeds for any property
currently owned, sold, or gifted in the last fve (5) years.
Vehicle Information
Copies of loan/lease statements for any vehicles.
IRS/FTB/EDD Information
Complete copies of Internal Revenue Service (IRS) or Franchise Tax Board (FTB) returns for the past
three (3) years. Please include all attached schedules. If applicable, include a copy of IRS, FTB,
or Employment Development Department (EDD) Offer in Compromise and acceptance letter or
documentation of other IRS/FTB/EDD arrangements.
Legal Documents
Copies of judgments, pending lawsuits, trust documents, and bankruptcy documents.
Authorizationto Release Financial Information to the California Department of Tax and Fee
Administration
A form will be mailed to you if it is needed to verify fnancial information.
Powerof Attorney
A power of attorney is required if a designated representative submits this offer or if you want us
to direct questions or requests for information to your representative. Forms CDTFA-392, Power of
Attorney, may be used.
If your offer is related to sales and use tax, please submit your completed and signed application to your
designated compliance representative at your local offce. If your offer is related to special taxes or fees,
submit your application and refer questions to the special taxes division that administers your account.
If you submit a deposit of the amount offered, designate the payment as “OIC Deposit” on the face of the
check and include your seller’s permit or CDTFA account number(s). If you submit the application without
the deposit, you will be notifed when it is required.
2 OFFER IN COMPROMISE APPLICATION
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CDTFA-490-C REV. 4 (8-18)
OFFER IN COMPROMISE APPLICATION
SECTION 1. BASIS FOR THE OFFER
The following facts and reasons are submitted as grounds for acceptance of this offer.
SECTION 2. SOURCE OF FUNDS
If any or all of the amount being offered is from a loan, please provide the following:
LENDER’S NAME TELEPHONE NUMBER TOTAL AMOUNT OF THE LOAN
( ) $
LENDER’S ADDRESS (city, state, zip code) TOTAL AMOUNT FROM OTHER SOURCES
$
DESCRIBE SOURCES OF OFFERED FUNDS OTHER THAN A LOAN
IF THIS OIC IS DENIED, THE CDTFA IS TO:
RetainOIC deposit and credit it to the current tax liability Returnthe amount deposited
OFFER IN COMPROMISE APPLICATION 3
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| CDTFA-490-C REV. 4 (8-18) Corporate Application SECTION 3. OFFER AMOUNT (You are not required to send the offer amount with the application.) SELLER’S PERMIT OR CDTFA ACCOUNT NUMBER(S) PERIOD(S) OF LIABILITY AMOUNT OWED TO THE CDTFA TOTAL AMOUNT OF THE OFFER $ $ It is understood that this offer will be considered and acted upon as quickly as possible. It does not relieve the taxpayer or feepayer of the liability sought to be compromised until the CDTFA accepts the offer and there has been full compliance with all agreements. The CDTFA may continue collection activities at its discretion. Except for any amount deposited in connection with this offer, it is agreed that the CDTFA will retain all payments and credits made to the account for the periods covered by this offer. In addition, the CDTFA will retain any and all amounts to which the tax or feepayer(s) may be entitled under the California law, due through overpayments of tax or fees, penalty, or interest, prior to the offer being accepted, not to exceed the liability. It is further agreed that upon notice to the taxpayer or feepayer of the acceptance of the offer, the taxpayer or feepayer shall have no right to contest in court or otherwise the amount of the liability sought to be compromised. No liability will be compromised until all obligations of each taxpayer or feepayer under the compromise agreement are completely performed. Under penalty of perjury, I declare that I have examined the information given in this statement and all other documents included with this offer and to the best of my knowledge and belief, they are true, correct, and complete. SIGNATURE TITLE DATE SIGNATURE TITLE DATE PROCESSING ACCEPTED OFFERS Generally, an offer will not be forwarded for approval until the offer is funded. Once the offer is approved and funded, the OIC Sec- tion will process all the necessary adjustments to your account balance. Releases of liens (if applicable) will be mailed directly to the county in which they were recorded. The taxpayer or feepayer making the offer will receive copies of the lien release documents and a statement of balance with the acceptance letter. Please note that the OIC covers only the fnal liabilities requested in the OIC application. Any future liabilities that may be assessed or become fnal after the date of the compromise are not covered. PROCESSING DENIED OFFERS If we reject or deny the offer, the deposit will be refunded or applied to the liability at the request of the taxpayer or feepayer with an effective date of the date the funds were received. No interest will be granted on returned deposits. If a third party has posted the deposited amount, staff must get written permission from the third party to apply the deposit. The case will be returned to the local district offce or headquarters offce with a recommendation for case handling based on information analyzed during the offer process. Please note: If you choose to make installment payments and the offered amount is not paid within twelve months, your offer will be denied and all funds received through the offer will be retained. 4 OFFER IN COMPROMISE APPLICATION |
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CDTFA-490-C REV. 4 (8-18) Corporate Application
SECTION 4. BUSINESS ENTITY INFORMATION (attach additional pages as needed)
NAME OF BUSINESS ENTITY STATUS CALIFORNIA BUSINESS NUMBER DATE INCORPORATED
ADDRESS FEDERAL EMPLOYER IDENTIFICATION NUMBER (FEIN) TELEPHONE NUMBER
( )
CORPORATE OFFICER/DIRECTOR/SHAREHOLDER’S NAME AND ADDRESS
TITLE TELEPHONE NUMBER
( )
AUTHORIZED REPRESENTATIVE’S ADDRESS (attach power of attorney) TELEPHONE NUMBER
( )
List of entity offcers, general partners, managing members.
NAME OF OWNER(S) BUSINESS ADDRESS TELEPHONE NUMBER TITLE
Other related businesses. List any of the business’ parent or subsidiary corporation relationships.
TRADE OR BUSINESS NAME BUSINESS ADDRESSES OR CORP. NUMBER TELEPHONE NUMBER FEIN
SECTION 5. GENERAL FINANCIAL INFORMATION (attach additional pages as needed)
Bank Accounts (payroll, general, savings, certifcates of deposit, etc.) List accounts held during the past 3 years.
NAME OF INSTITUTION ADDRESS TYPE DATE OPENED ACCOUNT NUMBER BALANCE
TOTAL [Enter this amount on line 2, Section 6 (Asset and Liability Analysis)]
Bank credit available (lines of credit, etc.)
NAME OF INSTITUTION ADDRESS CREDIT LIMIT CREDIT AVAILABLE AMOUNT OWED MO. PAYMENT
TOTAL
TOTAL [Enter this amount on line 19, Section 6 (Asset and Liability Analysis)]
OFFER IN COMPROMISE APPLICATION 5
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CDTFA-490-C REV. 4 (8-18) Corporate Application
Vehicles
CURRENT
YEAR, MAKE, MODEL, LICENSE NUMBER LENDER/PINK SLIPHOLDER MARKET VALUE CURRENT PAYOFF AVAILABLE EQUITY
TOTAL [Enter this amount on line 3, Section 6 (Asset and Liability Analysis)]
List any vehicles, equipment, or property sold, given away, or repossessed during the past three years.
YEAR, MAKE, MODEL OF VEHICLE, DESCRIPTION, OR PROPERTY ADDRESS WHO TOOK TITLE OR POSSESSION VALUE
Securities (stocks, stock options, bonds, mutual funds, money market funds, other securities, etc.)
QUANTITY OF
TYPE BROKERAGE NAME OWNER OF RECORD DENOMINATION CURRENT VALUE
TOTAL [Enter this amount on line 5, Section 6 (Asset and Liability Analysis)]
Judgments
WHERE PAYABLE OR
NAME CASE NUMBER DATE RECORDED RECORDED RECEIVABLE? AMOUNT
TOTAL [Enter receivable amount on line 10, Section 6 (Asset and Liability Analysis)]
TOTAL [Enter receivable amount on line 24, Section 6 (Asset and Liability Analysis)]
6 OFFER IN COMPROMISE APPLICATION
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CDTFA-490-C REV. 4 (8-18) Corporate Application
REAL PROPERTY (include a copy of the deed)
PHYSICAL ADDRESS AND DESCRIPTION (single family dwelling, multi family dwelling, lot, etc.) PARCEL NUMBER
MORTGAGE LENDER’S NAME ADDRESS (city, state, zip code)
HOW IS TITLE HELD? PURCHASE PRICE PURCHASE DATE
$
PHYSICAL ADDRESS AND DESCRIPTION (single family dwelling, multi family dwelling, lot, etc.) PARCEL NUMBER
MORTGAGE LENDER’S NAME ADDRESS (city, state, zip code)
HOW IS TITLE HELD? PURCHASE PRICE PURCHASE DATE
$
PHYSICAL ADDRESS AND DESCRIPTION (single family dwelling, multi family dwelling, lot, etc.) PARCEL NUMBER
MORTGAGE LENDER’S NAME ADDRESS (city, state, zip code)
HOW IS TITLE HELD? PURCHASE PRICE PURCHASE DATE
$
Accounts and notes receivable (loans to shareholders, offcers, partners, members, etc.)
NAME ADDRESS STATUS DATE DUE AMOUNT DUE
TOTAL [Enter this amount on line 9, Section 6 (Asset and Liability Analysis)]
Machinery and equipment
FAIR MARKET
DESCRIPTION (manufacturer, model number, etc.) NAME AND ADDRESS OF LIEN/NOTE HOLDER BALANCE DUE VALUE
TOTAL [Enter this amount on line 11, Section 6 (Asset and Liability Analysis)]
Merchandise inventory
LIQUIDATION CURRENT
DESCRIPTION COST BALANCE DUE VALUE MARKET VALUE
TOTAL [Enter this amount on line 12, Section 6 (Asset and Liability Analysis)]
OFFER IN COMPROMISE APPLICATION 7
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CDTFA-490-C REV. 4 (8-18) Corporate Application
SECTION 5. GENERAL FINANCIAL INFORMATION (Continued)
Please provide additional information relating to the fnancial condition of the corporation, LLC, partnership, or trust. If yes is
checked, please provide dates, explanation, and documentation. Documentation should cover the last three years.
DIVIDEND DISTRIBUTIONS (If yes, please list dates and amounts of 3 most recent distributions.)
Yes No
PENDING LITIGATION OR JUDGMENTS (If yes, please provide case number and court location.)
Yes No
REPOSSESSIONS
Yes No
ANTICIPATED INCREASE IN INCOME
Yes No
BANKRUPTCIES/RECEIVERSHIPS (If yes, please include chapter, case number, and date fled.)
Yes No
RECENT TRANSFER OF ASSETS (If yes, please include details on disbursements of entity’s assets.)
Yes No
BUSINESS SOLD (If yes, please provide a copy of the sales contract.)
Yes No
ENTITY OFFICIALLY DISSOLVED (If yes, please include details on disbursements of entity’s assets. List all disbursements during the last 6 months on a separate page.)
Yes No
BENEFICIARY TO TRUST, ESTATE, ETC.
Yes No
ARE FORECLOSURE PROCEEDINGS PENDING ON ANY REAL ESTATE THAT THE ENTITY OWNS OR HAS AN INTEREST IN? (If yes, please give the location of the real estate.)
Yes No
SECTION 6. ASSET AND LIABILITY ANALYSIS
Current assets
1. Cash
2. Bank accounts/balance (from Section 5)
3. Vehicles/available equity (from Section 5)
4. Loan (from Section 5)
5. Securities (from Section 5)
TOTAL CURRENT ASSETS
Real property (from Section 5)
A CB
ADDRESS OR LOCATION CURRENT MARKET VALUE MORTGAGE PAYOFF VALUE EQUITY
6.
7.
8.
(Column A minus Column B equals Column C) TOTAL EQUITY
8 OFFER IN COMPROMISE APPLICATION
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CDTFA-490-C REV. 4 (8-18) Corporate Application
SECTION 6. ASSET AND LIABILITY ANALYSIS (Continued)
Other assets Value
9. Notes/accounts receivable (from Section 5)
10. Judgments/settlements receivable (from Section 5)
11. Machinery and equipment (from Section 5)
12. Merchandise inventory (from Section 5)
13. Aircraft, watercraft (please list CF number or Hull ID number)
14. Interest in partnerships
15. Interest in trusts
16. Other assets (include description)
17. Other assets
TOTAL OTHER ASSETS
18. Subtotal of assets (current, equity, and other)
Current liabilities (attach additional pages as needed)
19. Lines of credit (amount owed from Section 5)
20. Notes/accounts payable (include description)
21. Taxes owed to IRS (provide a copy of recent notices)
22. Taxes owed to FTB (provide a copy of recent notices)
23. Taxes owed to EDD (provide a copy of recent notices)
24. Judgments (provide a copy)
25. Other liabilities (include description)
TOTAL LIABILITIES
SECTION 7. MONTHLY INCOME AND EXPENSE ANALYSIS
Income (Please furnish the information requested below from income tax returns, as adjusted, for the past three years.)
YEAR YEAR YEAR
26. Gross receipts from sales, services, etc.
27. Gross rental income
28. Interest
29. Dividends
30. Royalties
31. Other income (include description)
OFFER IN COMPROMISE APPLICATION 9
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CDTFA-490-C REV. 4 (8-18) Corporate Application
SECTION 7. MONTHLY INCOME AND EXPENSE ANALYSIS (Continued)
Income (continued)
YEAR YEAR YEAR
32. Other income
33. Other Income
34. Other Income
35. Other Income
36. Other Income
37. Other Income
TOTAL INCOME
Expenses
YEAR YEAR YEAR
38. Compensation of offcers (attach detailed list)
39. Net wages and salaries (including stock options,
bonuses, loan payments, and cash pay-outs)
40. Materials purchased
41. Rents
42. Installment payments
43. Supplies
44. Utilities/telephone
45. Gasoline/oil
46. Repairs and maintenance
47. Insurance
48. Taxes
49. Other expenses (include description)
50. Other expenses
51. Other expenses
52. Other expenses
53. Other expenses
54. Other expenses
TOTAL EXPENSES
Net difference (total income less expenses)
10 OFFER IN COMPROMISE APPLICATION
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Questions and Answers Q If the CDTFA determines that my offer is not
acceptable, will I be contacted?
Q What does the CDTFA consider a fair offer
A Yes. In most cases, we will contact you to
in relation to the amount due?
discuss your account and to determine the
A Generally, an offer will be accepted when the most appropriate resolution of your account.
amount offered is more than the CDTFA can For example, if we determine that you have
expect to collect within a reasonable period the ability to make monthly payments that
of time, generally from fve to seven years. will exceed the amount offered, we will work
The CDTFA will generally give more favorable with you to establish an Installment Payment
consideration to those offers that include Agreement. You will receive a written response
repayment of at least the tax or fee portion of concerning your offer.
the liability.
Q Will state tax liens be released if my offer is
Q How long will it take to get a decision on my accepted?
OIC?
A Yes. We release state tax liens upon fnal
A Generally, if we accept your offer for approval and funding of your offer. If another
processing, we will have a decision to you partner existed on the permit, the other
within 180 days after receiving your offer. If partner’s liability will not be cancelled nor will
your account is more complex, it may take the other partner’s lien be released.
longer than 180 days.
Q Do I need to have someone represent me?
Q Can I make payments on the offered
A No. Representation is not required. An OIC is
amount?
available to all taxpayers or feepayers, whether
A Yes. Beginning January 1, 2009, both qualifed or not they are represented. If you think you
active businesses and closed out businesses need representation, there are many tax
can make monthly installment payments professionals who have experience with the
towards the offered amount as long as the total OIC process.
amount of the offer is paid in full within twelve
Q If my offer is rejected, can I choose to apply
months. Or you may choose to pay the offered
the deposit to my liability?
amount in a lump sum payment. If you choose
to make installment payments and the offered A Yes. If you choose to do so, the effective date
amount is not paid within 12 months, your offer of the payment is the date the deposit was
will be denied and all funds received through made.
the offer will be retained.
Q Where can I get a Power of Attorney,
Q Can prior payments be applied to the CDTFA-392?
offered amount?
A Many CDTFA forms and publications, including
A No. Prior payments are not accepted towards CDTFA-392, can be downloaded from our
the offered amount. However, prior payments website www.cdtfa.ca.gov. If you do not have
and the offered amount compared to the total access to the Internet or you prefer to speak
liability are taken into consideration when to someone, you can contact your local offce
evaluating your offer. or our customer service representatives at
1-800-400-7115 (TTY:711).
Q My IRS/FTB/EDD OIC has been accepted.
Will the CDTFA automatically approve my Unless you have been otherwise directed, you must
offer? submit your offer to the representative assigned
to your account. If you do not know the name
A No. Your CDTFA offer will be evaluated
of the representative assigned to your account,
separately from your IRS, FTB, or EDD offer.
please contact your local offce. For more specifc
information on the OIC process, you may contact
the OIC Section at 1-916-322-7931.
OFFER IN COMPROMISE APPLICATION 11
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Offices Taxpayers’ Rights Advocate
Phone Toll-free number 1-888-324-2798
City Number Phone 1-916-324-2798
Fax 1-916-323-3319
Bakersfield 1-661-395-2880
Cerritos 1-562-356-1102
Customer Service Center
Culver City 1-310-342-1000
El Centro 1-760-352-3431 You can call our toll-free Customer Service
Center for answers to your general tax questions.
Fairfield 1-707-427-4800
Representatives are available to assist you
Fresno 1-559-440-5330 Monday through Friday 8:00 a.m. to 5:00 p.m.
Glendale 1-818-543-4900 (Pacific time), except state holidays.
Irvine 1-949-440-3473
Toll-free number 1-800-400-7115 (TTY:711)
Oakland 1-510-622-4100
Visit us on the Internet at www.cdtfa.ca.gov
Rancho Mirage 1-760-770-4828
Redding 1-530-224-4729
Riverside 1-951-680-6400
Sacramento 1-916-227-6700
Salinas 1-831-754-4500
San Diego 1-858-385-4700
San Francisco 1-415-356-6600
San Jose 1-408-277-1231
Santa Clarita 1-661-222-6000
Santa Rosa 1-707-576-2100
Ventura 1-805-677-2700
West Covina 1-626-480-7200
Out-of-State Offices
Chicago, IL 1-312-201-5300
Houston, TX 1-713-739-3900
New York, NY 1-212-697-4680
Western States 1-916-227-6600
Telephone numbers are current as of August 2020, but are subject to
change. We recommend you call the office before visiting.
12 OFFER IN COMPROMISE APPLICATION
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