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State Streamlines the Tax Offer in Compromise Process

Single application now available from three tax agencies

Continuing their efforts to make more services accessible and convenient for more taxpayers, California's three tax agencies have simplified the Offer In Compromise application process.

The Board of Equalization (BOE), Employment Development Department (EDD) and Franchise Tax Board (FTB) have developed a single form, the DE 999CA, Multi-Agency Form for Offer in Compromise, that individuals can use for any of the state's tax agencies.

“This is a great example of government working together to be more efficient for Californians,” said State Controller and FTB Chair Steve Westly. “Taxpayers experiencing financial hardship will now have some reprieve in resolving their tax issues.”

Taxpayers may apply for an Offer In Compromise when they are unable to pay their full tax liabilities to the state, under certain circumstances. The program allows taxpayers to negotiate a reduced amount of their non-disputed tax liabilities. The state will consider an Offer In Compromise when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential.

“Submitting one form greatly eases the burden on our taxpayers. In the past, taxpayers had to fill out three forms that often totaled one dozen pages or more,” said Board of Equalization Chair and FTB Member John Chiang. Chiang added, “This system epitomizes the continuing effort by the BOE, EDD, and FTB to provide user-friendly services to Californians.”

“This streamlined process is the result of our strong interagency partnerships, and it supports our common goals to simplify and facilitate the resolution of tax matters for California taxpayers,” said EDD Director Patrick Henning.

The individual agencies must still negotiate each Offer In Compromise separately for their respective taxes. For example, only the FTB can negotiate a state income tax liability where the Board of Equalization can only negotiate a sales or use tax liability.

The form is available online at the California Tax Service Center (www.taxes.ca.gov), as well as at each of the three tax departments' Website's (BOE www.boe.ca.gov, EDD www.edd.ca.gov, FTB www.ftb.ca.gov).