Free Offer in Compromise Application for Corporations, Limited Liability Companies, Partnerships, Trust, Unidentified Business Organi - California


File Size: 590.0 kB
Pages: 13
Date: November 24, 2008
File Format: PDF
State: California
Category: Tax Forms
Author: Offer in Compromise Section
Word Count: 3,397 Words, 22,719 Characters
Page Size: Letter (8 1/2" x 11")
URL

http://www.boe.ca.gov/pdf/boe490c.pdf

Download Offer in Compromise Application for Corporations, Limited Liability Companies, Partnerships, Trust, Unidentified Business Organi ( 590.0 kB)


Preview Offer in Compromise Application for Corporations, Limited Liability Companies, Partnerships, Trust, Unidentified Business Organi
S TAT E O F C A L I F O R N I A

B o a r d o f E q ua l i z at i o n

Offer In Compromise Application
Corporations Limited Liability Companies Partnerships Trusts Unidentified Business Organizations

When the partner is not an individual

BOE-490-C REV. 1 (11-08)

What you should know before preparing an Offer in Compromise
Are you an OIC candidate?
The Offer in Compromise (OIC) program is for tax payers or feepayers that do not have, and will not have in the foreseeable future, the income, assets, or means to pay their liability in full. It allows a taxpayer or feepayer to offer a lesser amount for payment of a non-disputed final tax liability on a closed-out account. Effective January 1, 2009 through December 31, 2012, the OIC program will extend to qualified active businesses where the taxpayer or feepayer has not received tax or fee reimbursement for tax and fees owed to the State, to successors of busi nesses that may have inherited tax liabilities of the predecessors, and to consumers who incurred a use tax liability. A qualified active business is an active business that does not have, and will not have in the fore seeable future, the income, assets, or means to pay their non-disputed board assessed liability in full, where the Board of Equalization (BOE) finds no evidence that the taxpayer collected sales or use tax reimbursement, and the taxpayer has not previously received a compromise. Generally, we approve an OIC when the amount offered represents the most we can expect to collect within a reasonable period of time. Although each case is evaluated based on its own merit, we give the following factors strong consid eration in the evaluation: abilitytopay equityintheentity'sassets presentandfutureincome presentandfutureexpenses potentialforchangedcircumstances concealmentofassetsorexistenceoffraud

individual or an individual of a partnership, you should request the OIC package for individuals (BOE-490)fromBOE'swebsiteorcontactyour local district office. If you are making an offer as an individual and another entity (corporation, LLC, trust, or organization), both the individual applica tion and the corporation application should be filled out respectively.

Who Qualifies?
We will only process your OIC application if: Younolongerhaveacontrollinginterestor association with the business that incurred the liability or a related business. Youareanactivebusinesswithafinalliability that arose from transactions in which you did not receive tax or fee reimbursement. Youareaconsumerwhoaccruedusetax. Youareasuccessorthatinheritedtheliability of your predecessor. YouhavefullycompletedtheOICapplication and provided all supporting documentation.

When should offered funds be submitted?
Youwillbenotifiedwhenyourofferedamount should be submitted. The funds will be held in the form of a non-interest bearing deposit. If your OIC is denied, the full amount of your deposit will be refunded to you, or you may choose to apply the deposit to your liability. Credit interest will not be paid to you on the deposited amount if your offer is denied and subsequently refunded.

Should I continue to make installment pay ments while my offer is being evaluated?
Yes.Youarerequiredtocontinuemakingtimely payments as established in your Installment Payment Agreement while your offer is being con sidered. The BOE will strive to process your offer and provide a decision within 180 days of receiv ing a completed application and documentation.

Who should use this application?
If you are making an offer as a corporation, LLC, trust, organization or a limited or general partnership, please use this application. For an

Will collection action be suspended while my offer is being evaluated?
In most cases, no new collection action will be taken while your offer is being evaluated. How ever, submitting an offer does not automatically
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OFFER IN COMPROMISE APPLICATION

suspend collection activity. If delaying collec tion activity jeopardizes our ability to collect the amount you owe, we may continue with collection efforts. The following documentation must be submitted with the OIC Application. Please submit copies only. We will not return any documentation that you send us. Additional documentation may be required and requested as the evaluation of the OICproceeds.YourOICmustincludethe following: CompletedOICapplication AllrequireddocumentationtosupporttheOIC

real Property Information
Mortgage statements, escrow settlement state ments, or copies of grant deeds for any property currently owned, sold, or gifted in the last five years.

Vehicle Information
Copies of loan/lease statements for all vehicles.

IrS/ftB/edd Information
Complete copies of Internal Revenue Service (IRS) and Franchise Tax Board (FTB) returns for the last three years filed. Please include all attached schedules. If applicable, copy of IRS, FTB, or Employment Development Department (EDD) OIC and acceptance letter or documentation of other IRS/FTB/EDD arrangements.

LISt Of reQuIred ItemS
Please read the required Privacy Notice (BOE-324-OIC)

Verification of Income and expenses
Year-to-dateincomeandexpensestatements, cash flow statements, profit and loss statements, a balance sheet, and any other related docu ments. If the entity is subject to annual audit, please submit audited financial statements.

Legal documents
Copies of judgments, pending lawsuits, trust documents, and bankruptcy documents.

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. Use BOE-392, Power of Attorney. Please submit your completed and signed appli cation to the BOE representative handling your account.

Bank Information
Bank statements for all savings, checking, and investment accounts held within the last twelve 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.

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OFFER IN COMPROMISE APPLICATION

BOE-490-C REV. 1 (11-08)

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'SNAME TELEPHONE NUMBER TOTAL AMOUNT OF THE LOAN

(
LENDER'SADDRESS(city, state, zip code)

)

$
TOTAL AMOUNT FROM OTHER SOURCES

$
DESCRIBE SOURCES OF OFFERED FUNDS OTHER THAN A LOAN

IF THIS OIC IS DENIED, THE BOE IS TO:

Retain OIC deposit and credit it to the current tax liability

Return the amount deposited

OFFER IN COMPROMISE APPLICATION

5

BOE-490-C REV. 1 (11-08)

Corporate Application

SeCtION 3. Offer AmOuNt (Youarenotrequiredtosendtheofferamountwiththeapplication.)
SELLER'SPERMITORBOEACCOUNTNUMBER(S) PERIOD(S)OFLIABILITY

AMOUNT OWED TO THE BOE

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 BOE accepts the offer and there has been full compliance with all agreements. The BOE may continue collection activities at its discretion. Except for any amount deposited in connection with this offer, it is agreed that the BOE will retain all payments and credits made to the account for the periods covered by this offer. In addition, the BOE 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 final liabilities requested in the OIC application. Any future liabilities that may be assessed or become final 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 tax or fee payer 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 office or headquarters office 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.

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OFFER IN COMPROMISE APPLICATION

BOE-490-C REV. 1 (11-08)

Corporate Application

SeCtION 4. BuSINeSS eNtItY INfOrmAtION (attach additional pages as needed)
NAMEOFBUSINESSENTITY STATUS CALIFORNIABUSINESSNUMBER D ATEINCORPORATED

ADDRESS



FEDERALEMPLOYERIDENTIFICATIONNUMBER(FEIN)



TELEPHONENUMBER

(
CORPORATEOFFICER/DIRECTOR/SHAREHOLDER'SNAMEANDADDRESS

)

TITLE

TELEPHONE NUMBER

(
AUTHORIZEDREPRESENTATIVE'SADDRESS(attach power of attorney)

) )

TELEPHONE NUMBER

( List of entity officers, 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, certificates 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

7

BOE-490-C REV. 1 (11-08)

Corporate Application

Vehicles
YEAR, MAKE, MODEL, LICENSE NUMBER LENDER/PINK SLIPHOLDER CURRENT 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.)
TYPE BROKERAGE NAME OWNER OF RECORD QUANTITY OF DENOMINATION CURRENT VALUE

tOtAL [Enter this amount on line 5, Section 6 (Asset and Liability Analysis)] >> Judgments
NAME CASE NUMBER DATE RECORDED WHERE RECORDED PAYABLE OR 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)] >>

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OFFER IN COMPROMISE APPLICATION

BOE-490-C REV. 1 (11-08)

Corporate Application

reAL PrOPertY (include a copy of the deed)
PHYSICALADDRESSANDDESCRIPTION(single family dwelling, multi family dwelling, lot, etc.) PARCEL NUMBER

MORTGAGELENDER'SNAME

ADDRESS(city, state, zip code)

HOW IS TITLE HELD?

PURCHASE PRICE

PURCHASE DATE

$
PHYSICALADDRESSANDDESCRIPTION(single family dwelling, multi family dwelling, lot, etc.) PARCEL NUMBER

MORTGAGELENDER'SNAME

ADDRESS(city, state, zip code)

HOW IS TITLE HELD?

PURCHASE PRICE

PURCHASE DATE

$
PHYSICALADDRESSANDDESCRIPTION(single family dwelling, multi family dwelling, lot, etc.) PARCEL NUMBER

MORTGAGELENDER'SNAME

ADDRESS(city, state, zip code)

HOW IS TITLE HELD?

PURCHASE PRICE

PURCHASE DATE

$ Accounts and notes receivable (loans to shareholders, officers, 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
DESCRIPTION (manufacturer, model number, etc.) NAME AND ADDRESS OF LIEN/NOTE HOLDER BALANCE DUE FAIR MARKET VALUE

tOtAL [Enter this amount on line 11, Section 6 (Asset and Liability Analysis)] >> merchandise inventory
DESCRIPTION COST BALANCE DUE LIQUIDATION VALUE CURRENT MARKET VALUE

tOtAL [Enter this amount on line 12, Section 6 (Asset and Liability Analysis)] >>

OFFER IN COMPROMISE APPLICATION

9

BOE-490-C REV. 1 (11-08)

Corporate Application

SeCtION 5. GeNerAL fINANCIAL INfOrmAtION (Continued) Please provide additional information relating to the financial conditionof the corporation, LLC, pertnership, 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 Yes
REPOSSESSIONS

No No No No No No No No No No

PENDING LITIGATION OR JUDGMENTS (If yes, please provide case number and court location.)

Yes Yes Yes Yes Yes Yes Yes Yes

ANTICIPATED INCREASE IN INCOME

BANKRUPTCIES/RECEIVERSHIPS (If yes, please include chapter, case number, and date filed.)

RECENT TRANSFER OF ASSETS (If yes, please include details on disbursements of entity's assets.)

BUSINESS SOLD (If yes, please provide a copy of the sales contract.)

ENTITYOFFICIALLYDISSOLVED (If yes, please include details on disbursements of entity's assets. List all disbursements during the last 6 months on a separate page.)

BENEFICIARYTOTRUST,ESTATE,ETC.

AREFORECLOSUREPROCEEDINGSPENDINGONANYREALESTATETHATTHEENTITYOWNSORHASANINTERESTIN? (If yes, please give the location of the real estate.)

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)
ADDRESS OR LOCATION A CURRENT MARKET VALUE B MORTGAGE PAYOFF VALUE C EQUITY

6. 7. 8. (Column A minus Column B equals Column C) tOtAL eQuItY >>

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OFFER IN COMPROMISE APPLICATION

BOE-490-C REV. 1 (11-08)

Corporate Application

SeCtION 6. ASSet ANd LIABILItY ANALYSIS (Continued) Other assets 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. 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

Value

Subtotal of assets (current, equity, and other) >>

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

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BOE-490-C REV. 1 (11-08)

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 officers (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) >>

12 CLEAR PRINT

OFFER IN COMPROMISE APPLICATION

Questions and Answers
Q What does the BOe consider a fair offer in relation to the amount due? A Generally, an offer will be accepted when the amount offered is more than the BOE can expect to collect within a reasonable period of time, generally from five to seven years. The BOE will generally give more favorable consid eration to those offers that include repayment of at least the tax or fee portion of the liability. Q How long will it take to get a decision on my OIC? A Generally, if we accept your offer for process ing, we will have a decision to you within 180 days after receiving your offer. If your account is more complex, it may take longer than 180 days. Q Can I make payments on the offered amount? A Yes.BeginningJanuary1,2009,bothqualified active businesses and closed out businesses can make monthly installment payments towards the offered amount as long as the total amount of the offer is paid in full within twelve months. Or you may choose to pay the offered amount in a lump sum payment. If you choose to make installment payments and the offered amount is not paid within 12 months, your offer will be denied and all funds received through the offer will be retained. Q Can prior payments be applied to the offered amount? A No. Prior payments are not accepted towards the offered amount. However, prior payments and the offered amount compared to the total liability are taken into consideration when evaluating your offer. Q my IrS/ftB/edd OIC has been accepted. Will the BOe automatically approve my offer? A No.YourBOEofferwillbeevaluatedseparately from your IRS, FTB, or EDD offer.

Q If the BOe determines that my offer is not acceptable, will I be contacted? A Yes.Inmostcases,wewillcontactyouto discuss your account and to determine the most appropriate resolution of your account. For example, if we determine that you have the ability to make monthly payments that will exceed the amount offered, we will work with you to establish an Installment Payment Agreement.Youwillreceiveawrittenresponse concerning your offer. Q Will state tax liens be released if my offer is accepted? A Yes.Wereleasestatetaxliensuponfinal approval and funding of your offer. If another partner existed on the permit, the other partner'sliabilitywillnotbecancellednorwillthe otherpartner'slienbereleased. Q do I need to have someone represent me? A No. Representation is not required. An OIC is available to all tax or fee payers, whether or not they are represented. If you think you need representation, there are many tax profession als who have experience with the OIC process. Q If my offer is rejected, can I choose to apply the deposit to my liability? A Yes.Ifyouchoosetodoso,theeffectivedate of the payment is the date the deposit was made. Q Where can I get a Power of Attorney, BOe-392? A Many BOE forms and publications, including BOE-392, can be downloaded from our website www.boe.ca.gov. If you do not have access to the Internet or you prefer to speak to some one, you can contact your local district office or our customer service representatives at 800-400-7115. Unless you have been otherwise directed, you must submit your offer to the representative assigned to your account. If you do not know the name of the representative assigned to your account, please contact your local district office. For more specific information on the OIC process, you may contact the OIC Section at 916-322-7931.
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OFFER IN COMPROMISE APPLICATION

field Offices
City Bakersfield Chula Vista Culver City El Centro Eureka* Fresno Irvine Norwalk Oakland Rancho Mirage Redding Riverside Sacramento Salinas San Diego San Francisco San Jose San Marcos Santa Rosa Suisun City Van Nuys Ventura West Covina Area Code 661 619 310 760 707 559 949 562 510 760 530 951 916 831 619 415 408 760 707 707 818 805 626 Phone Number 395-2880 409-7440 342-1000 352-3431 576-2100 248-4219 440-3473 466-1694 622-4100 770-4828 224-4729 680-6400 227-6700 443-3003 525-4526 356-6600 277-1231 510-5850 576-2100 428-2041 904-2300 677-2700 480-7200 Out-of-State Accounts Property and Special taxes department Centralized Collections Timber Tax Section Private Railroad Car Tax Fuel Taxes Division Excise Taxes Division Environmental Fees Division 916-445-3670 916-445-6964 916-327-2739 916-322-9669 916-327-4208 916-323-9555 888-324-2798 916-324-2798 916-323-3319

Taxpayers'RightsAdvocate
Toll-free number Phone Fax

taxpayer Information Section
Youcancallourtoll-freeTaxpayerInformation Section for answers to your general tax questions. Representatives are available to assist you Monday through Friday 8:00 a.m. - 5:00 p.m. Pacific time excluding state holidays. Toll-free number 800-400-7115

TDD service for the hearing impaired: FromTDD/TTY 800-735-2929

Visit us on the Internet www.boe.ca.gov

Out-of-State field Offices Chicago, IL Houston, TX NewYork,NY Sacramento, CA 312 281 212 916 201-5300 531-3450 697-4680 227-6600

* Limited services are available in Eureka. See www.boe.ca.gov or call the number listed above (Santa Rosa field office).

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OFFER IN COMPROMISE APPLICATION