Form CDTFA-490 "Offer in Compromise Application" - California

What Is Form CDTFA-490?

This is a legal form that was released by the California Department of Tax and Fee Administration - a government authority operating within California. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on August 1, 2017;
  • The latest edition provided by the California Department of Tax and Fee Administration;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;

Download a fillable version of Form CDTFA-490 by clicking the link below or browse more documents and templates provided by the California Department of Tax and Fee Administration.

ADVERTISEMENT
ADVERTISEMENT

Download Form CDTFA-490 "Offer in Compromise Application" - California

1447 times
Rate (4.5 / 5) 101 votes
State of California
California Department of
Tax and Fee Administration
Offer I n Compr omi se
Appl i ca ti on
CDTFA-490 REV. 2 (8-17)
State of California
California Department of
Tax and Fee Administration
Offer I n Compr omi se
Appl i ca ti on
CDTFA-490 REV. 2 (8-17)
What you should know before preparing an Offer in Compromise Application
Are you an OIC
The Offer in Compromise (OIC) program is for taxpayers/feepayers (hereinafter called
candidate?
“taxpayers”) that do not have, and will not have in the foreseeable future, the income,
assets or means to pay their tax liabilities. This program allows a taxpayer to offer a
lesser amount for payment of a nondisputed final tax liability. A taxpayer wishing to
compromise a liability through the OIC process must no longer own the personal
property that incurred the tax that could result in an additional tax or fee
assessment.
Generally, we approve an Offer in Compromise when the amount offered represents
the most we can expect to receive from the taxpayer’s current income or assets.
Although each case is evaluated based on its own unique set of facts and
circumstances, we give the following factors strong consideration:
• The taxpayer’s ability to pay
• The amount of equity in the taxpayer’s assets
• The taxpayer’s present and future income
• The taxpayer’s present and future expenses
• The potential for changed circumstances
Can we process
We will only process your Offer in Compromise Application if you meet the following
your application?
criteria:
• You have fully completed the Offer in Compromise Application and provided all
supporting documentation.
If you have been assessed a fraud penalty, a minimum offer of the outstanding tax
and fraud penalty is required for processing. However, if you have been convicted of
felony tax evasion, an offer will not be considered.
Will we require
Yes, we will require you to continue making per iodic payments as called for in any
you to continue
existing installment payment agreement while your offer is being considered. The
payments on an
California Department of Tax and Fee Administration (CDTFA) will strive to process your
installment
offer and provide a decision within 180 days of receiving a completed application along
payment
with the required documentation.
agreement?
Are collections
Collection action will usually be suspended until the Offer in Compromise evaluation is
suspended?
completed. However, if delaying collection activity jeopardizes our ability to collect the
tax, we may continue with collection efforts.
When should
The OIC Section will request that the offered funds be submitted at the time your offer is
offered funds be
formally considered. The funds will be held in the form of a deposit, and will be refunded
submitted?
to you if your offer is denied. Credit interest will not be paid to you on the deposited
amount if your offer is denied.
CDTFA-490 (S1F) REV. 2 (8-17)
STATE OF CALIFORNIA
OFFER IN COMPROMISE APPLICATION
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
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.
Check List of Required Items (Check only those boxes that apply.)
Verification of Income
Pay stubs for the past three months or financial statements for the past two years if you are self-
employed. (Please include total household income.)
Verification of Expenses
Billing statements for the last three months. (Please include copies of charge card statements, bills
from other creditors and personal loan statements.)
Bank Information
Bank statements for savings and checking accounts for the last six months. (If you are self-
employed, provide bank statements for the last twelve months. Please include bank statements for
any accounts that have been closed within the last two years.)
Investment Information
Investment account statements showing the value of stocks, bonds, mutual funds and/or retirement
or profit sharing plans. (IRA, 401K, Keogh, Annuity)
Current Lease or Rental Agreements
(Please include all lease agreements, including property where you are the lessor or lessee.)
Real Property Information
Mortgage statements and escrow statements for property you currently own, or property you sold or
gifted in the last five years. (Please include quit claim deed transfers and property held in trust. If a
trust exists, please provide a copy of all trust documents.)
IRS/FTB Information
Complete copies of Internal Revenue Service (IRS) or Franchise Tax Board (FTB) returns for the
past three years.
(If applicable, please include a copy of IRS, FTB, or EDD OIC and acceptance letter or other
IRS/FTB/EDD arrangements.)
Legal Documents
Marital settlement agreements, divorce decrees, marital property settlements, trust documents, and
bankruptcy documents.
Medical Documentation
Physician’s letter and/or other documents to show any medical condition that should be considered.
Power of Attorney (If you have representation)
If a designated representative submits this offer, attach the appropriate power of attorney (POA) form.
(CDTFA-392, Power of Attorney, may be used.)
Submit your completed and signed application to your designated CDTFA compliance representative.
If you have questions, other than those addressed on the last page of this booklet, please contact your
CDTFA compliance representative.
CDTFA-490 (S1B) REV. 2 (8-17)
Please complete all blocks, except shaded areas. W rite “N/A” (Not Applicable) in those blocks that do not apply.
Information should be typed or printed.
SECTION 1. BASIS FOR THE OFFER
The following facts and reasons are submitted as grounds for consideration and acceptance of this offer. (Attach
additional pages as needed.)
SECTION 2. SOURCE OF FUNDS
If any or all of the amount being offered is from a loan, please provide the following information:
LENDER’S NAME
PHONE NUMBER
(
)
STREET ADDRESS (city, state, zip code)
TOTAL AMOUNT OF THE LOAN
$
DESCRIBE THE SOURCE(S) OF THE OFFERED FUNDS (If the offered funds are from a loan, please describe how you intend to repay the loan.)
If this Offer in Compromise is denied, the CDTFA is to:
Retain any amount deposited and credit it to the current tax liability.
Return the amount deposited.
CDTFA-490 (S2F) REV. 2 (8-17)
STATE OF CALIFORNIA
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
SECTION 3. OFFER AMOUNT
AMOUNT OWED TO THE CDTFA
PERIOD(S) OF LIABILITY
CDTFA ACCOUNT NUMBER(S)
The sum of $
is offered in compromise. (The CDTFA will instruct you when to mail the
offer amount. Do not send money now.)
It is understood that this offer will be considered and acted upon as quickly as possible. It does not relieve the
taxpayer(s) 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 f or any amount deposited in connection with this offer, i t i s agreed that the CDTFA will retain all payments
and credits made to the account f or the periods covered by this offer. In addition, prior to the offer being accepted,
the CDTFA will retain any and all amounts to which the taxpayer(s) may be entitled under the California law, due
through overpayments of tax, penalty or interest, not to exceed the liability.
It i s further agreed that u pon notice to the taxpayer(s) of the acceptance of the offer, t he taxpayer(s) 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 under the compromise agreement ar e completely performed. I n
the event of a default b y the taxpayer(s) on the agreement, i t i s agreed that t he CDTFA may disregard the amount
of the offer and retain all amounts previously deposited under the offer and proceed to collect t he balance of the
original liability.
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.
APPLICANT (please print)
CO-APPLICANT (please print)
DATE
APPLICANT (signature)
CO-APPLICANT (signature)
DATE
PROCESSING DENIED OFFERS
If we reject or deny the offer, we will refund any deposit already obtained or apply it to the liability at the request of
the taxpayer with an effective date as the date the funds were received. No interest will be granted on returned
deposits. I f a third party has posted the deposited amount, staff m ust get written permission from the third party to
apply the deposit. The case will be returned to the district with a recommendation for case handling.
There is no formal appeal process for rejected or denied offers in compromise.