multi-agency Offer in Compromise form
Streamlines the process
The Board of Equalization (BOE), Employment Development Department (EDD), and Franchise Tax Board (FTB) have developed a single form, the Multi-Agency Form for Offer in Compromise (DE999CA), which can be submitted to any of the state's tax agencies.
Your clients may apply for an Offer in Compromise (OIC) under certain circumstances, when they are unable to pay their full tax liabilities to the state. The program allows taxpayers to negotiate a reduced amount of their non-disputed tax liabilities. The state will consider an OIC when it is unlikely that the tax liability can be collected in full, and the offered amount reasonably reflects collection potential.
The individual agencies must still negotiate each OIC separately for their respective taxes. For example, only FTB can negotiate a state income tax liability, and only the Board of Equalization can negotiate sales or use tax liability. The form is available online at the California Tax Service Center, as well as at each of the three tax departments' Websites (BOE, EDD, and FTB).