Fillable Form Boe-490 - Offer In Compromise Application (Page 11 of 11) in pdf

Questions and Answers

What does the Board of Equalization consider a fair Offer in Compromise in relation to the amount

due?

Generally, an Offer in Compromise will be accepted when the amount offered is more than the Board can

expect to collect within a reasonable period of time, typically from five to seven years.

How long will it take to get a decision on my OIC?

Generally, if we accept your offer for processing, we will have a decision to you within 180 days after receiving

your Offer in Compromise. If your account is more complex, it may take longer than 180 days.

Can I make installment payments on the offered amount?

No. We require full payment of the offered amount before we will forward the Offer in Compromise for final

consideration.

Can prior payments be applied to the offered amount?

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 in Compromise.

My IRS/FTB OIC has been accepted. Will the Board automatically approve my Offer in Compromise?

No. Your Board offer will be evaluated separately from your IRS or FTB offer, and generally, if the amount of

the offer represents the most that we can expect to collect within a reasonable period of time, we will accept

your Offer in Compromise.

If the Board determines that my Offer in Compromise is not acceptable, will I be contacted?

Yes. A letter informing you of our discussion will be sent to you. We may also contact you to discuss your

account and to determine the most appropriate resolution. 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 that will allow you to pay the liability in full over time.

Will state tax liens be released if my Offer in Compromise is accepted?

We release state tax liens upon final approval of your Offer in Compromise. If another partner existed on the

permit, that person’s liability will not be canceled nor will the lien be released. A partial release will be issued

to release you from the effects of the lien.

Do I need to have someone represent me?

Representation is not required. Offer in Compromise is available to all taxpayers, whether or not they are

represented. If you think you need representation, there are many tax professionals who have experience with

the OIC process.

Can I get relief from the tax liability by filing bankruptcy?

Part or all of your taxes may be dischargeable under the bankruptcy code. If this is a consideration, you may

want to seek legal advice.

If my Offer in Compromise is rejected, can I choose to apply the deposit to my liability?

Yes. If you choose to do so, the effective date of the payment is the date the deposit was made. If the deposit

was posted by a third party, we must obtain their approval before applying the payment.

Will collection action be suspended while my offer is being evaluated?

Usually, if we are in receipt of a relatively complete application. You may also be required to continue

payments if you are currently in an Installment Payment Agreement. If delaying collection activity jeopardizes

our ability to collect the tax, we may continue with collection efforts.

Form Boe-490 - Offer In Compromise Application Page 11