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

What Is Form CDTFA-490-C?

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, 2018;
  • 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-C by clicking the link below or browse more documents and templates provided by the California Department of Tax and Fee Administration.

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

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S TAT E O F CA L I FO R N I A
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)
S TAT E O F CA L I FO R N I A
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)
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,
When should offered funds be submitted?
and to consumers who incurred a use tax liability.
You will be notifed when your offered amount
A qualifed active business is an active business
should be submitted. The funds will be held in the
that does not have, and will not have in the
form of a noninterest bearing deposit. If your OIC
foreseeable future, the income, assets, or means
is denied, the full amount of your deposit will be
to pay their nondisputed California Department
refunded to you, or you may choose to apply the
of Tax and Fee Administration (CDTFA) assessed
deposit to your liability. Credit interest will not be
liability in full, where the CDTFA fnds no
paid to you on the deposited amount if your offer
evidence that the taxpayer collected sales or use
is denied and subsequently refunded.
tax reimbursement, and the taxpayer has not
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
documentation.
• equity in the entity’s assets
• 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,
submitting an offer does not automatically suspend
Who should use this application?
collection activity. If delaying collection activity
If you are making an offer as a corporation,
jeopardizes our ability to collect the amount you
LLC, trust, organization, or a limited or general
owe, we may continue with collection efforts.
partnership, please use this application. For an
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
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.
Authorization to 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.
Power of 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
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:
Retain OIC deposit and credit it to the current tax liability
Return the amount deposited
OFFER IN COMPROMISE APPLICATION
3
Corporate Application
CDTFA-490-C REV. 4 (8-18)
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