FTB 4045 Offer In Compromise things you should know New: 01/2018

To apply for an OIC, complete the application and provide the necessary documentation. For a checklist of required items, go to ftb.ca.gov/forms and search for 4905.

• For Personal Income Tax, use FTB 4905 PIT, Offer in Compromise for Individuals.
• For Business Entities, use FTB 4905 BE, Offer in Compromise for Business Entities — Booklet.

We only process OIC applications if you have:

• Filed all of the required tax returns and you agree on the amount you owe. If you do not have a filing requirement, note it on your application.
• Fully completed the Offer in Compromise application and provided all supporting documentation.
• Authorized FTB to obtain your consumer credit report and investigate and verify the information you provided on your application.

Upon approval, we may require a taxpayer to enter into a collateral agreement for a term of five years. Generally, a collateral agreement will be required in cases when an entity or taxpayer has significant potential for increased earnings. A collateral agreement requires you to pay to FTB a percentage of future earnings that exceed an agreed upon threshold

All applicants must

Complete the checklist provided in the application to ensure you address all required areas.

• Complete all pages of the application, providing full disclosure. This includes writing “not applicable” in the appropriate areas.
• Complete the justification for the offer and source of funds. You cannot leave these sections blank.
• Verify the application is signed and dated.
• Include required copies of all bank statements, pay stubs, and profit and loss worksheets.
• Include the application and acceptance letter or other IRS arrangements, if you have submitted or completed an offer for the IRS.
• Include all information and assets. If we locate omitted assets during the evaluation process, it will serve as grounds to deny the offer.

Business entities

• Ensure that all required returns are filed prior to submitting an application. Business Entities must include all returns up to the current year. This may include a partial year return and marking the “final return” box on the last return, if the business is closed.
• Include every bank account statement, or proof the accounts have been closed.

Personal income tax

• Include three months of all billing statements for amounts claimed.
• Include a current rental agreement or mortgage statement.
• Include copies of all bank statements and pay stubs. If self-employed, provide profit and loss worksheets.
• If one of the reasons for justification of the offer is a medical condition(s), you must provide documentation.

Request an OIC application online or by telephone:

Website www.ftb.ca.gov/forms
and search for 4905 Phone 800-338-0505
and select Personal Income Tax form requests

Mail or fax your Offer in Compromise application and all supporting documents to:

Mail State of California
Franchise Tax Board
OIC Group MS A453
PO Box 2966
Rancho Cordova CA 95741-2966 Fax 916-845-0479

For more information on FTB’s Offer in Compromise program, go online or call:

Website www.ftb.ca.gov
and search for oic Phone 916-845-4787
Monday - Friday, 8 AM - 5 PM

FTB 4045 (New 01-2018)

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