4905 Form Ftb – Fill Out and Use This PDF

The FTB 4905 PIT form, also known as the Offer in Compromise for Individuals, is a document used by individuals to propose a settlement for less than the full amount of taxes owed to the California Franchise Tax Board (FTB) when they are unable to pay their existing tax liabilities and foresee similar financial limitations in the future. This form provides a structured way for individuals to present their financial situation, including income, assets, expenses, and employment information, to the FTB along with an offer amount that represents the most the FTB can expect to collect within a reasonable timeframe. If you find yourself in a situation where you are unable to fulfill your tax liabilities, consider clicking the button below to learn more about how to fill out the FTB 4905 PIT form.

Get Form Now Download PDF

4905 Form Ftb PDF Details

In the realm of tax obligations and financial challenges, the FTB 4905 PIT booklet emerges as a beacon of hope for individuals grappling with outstanding California income tax liabilities. At its core, the Offer in Compromise (OIC) program encapsulates a solution tailored to those who find themselves in a position where paying their tax debt in full, either presently or in the foreseeable future, is beyond their financial capability. This booklet lays out a comprehensive guide, beginning with essential preparatory knowledge ensuring eligibility criteria are met, encompassing necessary documentation, personal and employment financial information, asset and liability analysis, monthly household expenditures, and a retrospective analysis of three-year income summaries. Furthermore, it delves into detailing the basis for the offer, sources of funds, offer amount, and a crucial statement of agreement alongside a set of frequently asked questions to clarify common uncertainties. A notable element of the OIC program is its evaluative framework that leans heavily on factors such as the applicant's ability to pay, equity in assets, current and future income/expenses, and the potential for changed circumstances. However, the path to acceptance of an OIC requires thorough compliance, including filing all required tax returns, agreeing with the Franchise Tax Board (FTB) on the tax amount owed, and submitting a complete application with all supporting documentation. Applicants must navigate the complexities of ensuring all required items are submitted to prevent the application from being returned as incomplete. This journey through the OIC program also acknowledges the reality of continued collection activities and interests, setting the stage for a structured process leading to financial relief for eligible Californians.

Question	Answer
Form Name	4905 Form Ftb
Form Length	16 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	4 min
Other names	4905 california form, ftb offer in compromise, ftb form 4905 pit, california form offer

Form Preview Example

FTB 4905 PIT BOOKLET

Offer in Compromise

for Individuals

Table of Contents

What You Need to Know Before You Prepare an Offer in Compromise . . . . . . . . . . . . . . . . . . . . . . . . 1 Offer in Compromise Application Form – Checklist of Required Items. . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 1 – Personal Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 2 – Employment or Business Income Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Section 3 – General Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Section 4 – Asset and Liability Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Section 5 – Monthly Household Income and Expense Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 6 – Three Year Income Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 7 – Basis for the Offer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 8 – Source of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 9 – Offer Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 10 – Statement of Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Frequently Asked Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

An Offer in Compromise (OIC) provides an alternative for individuals who are unable to pay their outstanding California income tax liabilities, and who won’t be able to in the foreseeable future.

What You Need to Know Before Preparing an Offer in Compromise

Eligibility: If you are an individual without the income, assets, or means to pay your tax liability now or in the foreseeable future, you may be eligible for an OIC. The OIC Program allows you to offer a lesser amount for payment of a nondisputed ﬁnal tax liability.

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 unique set of facts and circumstances, we give the following factors strong consideration in the evaluation:

•Your ability to pay.

•Your equity in assets.

•Your present and future income.

•Your present and future expenses.

•The potential for changed circumstances.

•The offer is in the best interest of the state.

Your	We will only process your OIC application once you:
Application:

•File all required tax returns. If you have no ﬁling requirement, note it on the application.

•Fully complete the OIC application and provide all supporting documentation.

•You agree with the Franchise Tax Board (FTB) on the amount of tax you owe.

Collateral	Upon approval of your offer, we may require you to enter into a collateral agreement. If you
Agreement:	have a signiﬁcant potential for increased earnings, we may require that you pay a greater
	portion or all of your original tax liability if you earn more than anticipated during the ﬁve
	year period following FTB’s approval of your OIC.
Collection	Submitting an offer does not automatically suspend collection activity. If delaying collection
Activity:	activity jeopardizes our ability to collect the tax, we may continue collection efforts. Interest,
	fees, and penalties continue to accrue as prescribed by law.
When to pay:	Do not submit the offer amount until we request it. When we ask for the funds, submit them
	by cashier’s check or money order.

FTB 4905 PIT CI (REV 04-2009) PAGE 1

STATE OF CALIFORNIA

OIC GROUP MS A453

FRANCHISE TAX BOARD

PO BOX 2966

RANCHO CORDOVA CA 95741-2966 916.845.4787 (not toll-free) ftb.ca.gov

OFFER IN COMPROMISE APPLICATION FORM

Checklist of Required Items

You must submit the following documentation with your Offer in Compromise Application Form or we will return your application as incomplete. You must include the information for you and your spouse/Registered Domestic Partner (RDP). Please submit copies only. Indicate if any of the items below are not applicable (N/A). We may request additional documentation.

N/A Included

mm Veriication of Income

Complete pay stubs for the past three months, or ﬁnancial statements for the past two years if self-employed. Include any investment or ownership in any business entity or trust, and income derived from these sources (dividends, K-1 income, distributions, etc.).

mm Veriication of Expenses

Billing statements for the last three months. (Include copies of revolving charge card statements, bills from other creditors, and personal loan statements.)

mm Bank Information

Complete bank statements for savings and checking accounts for the last six months. If self-employed, provide bank statements for the last twelve months. Include accounts that have been closed during that period.

mm Securities

Investment account statements showing the value of stocks, bonds, mutual funds, and/or retirement or proﬁt sharing plans, e.g., IRA, 401(k), Keogh, or Annuity.

mm Current Lease or Rental Agreements

mm Real Property Information

Mortgage statements and escrow statements for property you currently own, sold, or gave away in the last ﬁve years.

mm Internal Revenue Service (IRS) Information

IRS OIC application and acceptance letter or other IRS arrangements.

mm Legal Documents

Marital settlement agreements, divorce decrees, marital property settlements, trust documents, and bankruptcy documents.

mm Medical Information

Physician’s letter including diagnosis and prognosis and/or other documents to show any medical condition that should be considered.

mm Power of Attorney

Power of Attorney if a designated representative submits this offer.

Mail your completed and signed application to the address listed above.

If you have any questions, contact the OIC group at 916.845.4787 (not toll-free).

FTB 4905 PIT C1 (REV 04-2009) PAGE 2

Note: Complete all areas that are not shaded. Write “n/a” in those blocks that do not apply. For Privacy Notice information, please read the enclosed FTB 1131. To get additional copies of this notice, call us at 800.338.0505; from outside the United States call 916.845.6600 (not toll-free) or download it at ftb.ca.gov.

Section 1 – Personal Information

First name	MI	Last name				Social security number		Date of birth


Other names and aliases ever used


First name of spouse or Registered Domestic	MI	Last name of spouse or RDP				Social security number		Date of birth
Partner (RDP)


Other names and aliases ever used


Taxpayer’s driver’s license number		State	Spouse or RDP driver’s license number					State


Dependent’s names				Date of birth	Social security number		Relationship

Current mailing address

Phone number

()

Cell phone number

()

Current physical address

Previous address if at current address less than two years

Name and address of your tax representative (attach a Power of Attorney)

Phone number

()

Cell phone number

()

Fax phone number

()

FTB 4905 PIT CI (REV 04-2009) PAGE 3

Section 2 – Employment or Business Income Information

Taxpayer’s employer or business (name and address):
		How long employed: _______ Years		_______ Months
		Occupation: __________________________________
		m Wage earner	m฀Sole proprietor
		m฀Partner	m฀Ofﬁcer
		Paid:	m฀Biweekly
		m Weekly	m฀Biweekly
Business phone number: (	)	m฀Monthly	m฀Semimonthly
Business phone number: (	)

Spouse’s or RDP’s employer or business (name and address):
		How long employed: _______ Years		_______ Months
		Occupation: __________________________________
		m Wage earner	m฀Sole proprietor
		m฀Partner	m฀Ofﬁcer
		Paid:	m฀Biweekly
		m Weekly	m฀Biweekly
Business phone number: (	)	m฀Monthly	m฀Semimonthly
Business phone number: (	)

Section 3 – General Financial Information

Bank accounts: (include IRA and retirement plans, certiﬁcates of deposit, etc.). Attach additional pages if needed.

Name of Institution

Address

Type

Date

Opened

Account Number

Balance

Total. Enter this amount on line 2, Section 4 (Asset and Liability Analysis) of this application . . .

Vehicles: Attach additional pages if needed.

Year, Make, Model,

License Number

Lender/Pink Slip

Holder

Current Market

Value

Current Payoff

Available Equity

Total. Enter this amount on line 3, Section 4 (Asset and Liability Analysis) of this application . . .

FTB 4905 PIT C1 (REV 04-2009) PAGE 4

Section 3 – General Financial Information (continued)

Life insurance. Attach additional pages if needed.

Name of Insurance

Agent’s Name

and Phone Number

Policy Number

Type

Face Amount

Loan/Cash

Surrender

Value

Total. Enter this amount on line 4, Section 4 (Asset and Liability Analysis) of this application . . .

Securities. (Stocks, bonds, mutual funds, money market funds, etc.) Attach additional pages if needed.

Type

Where Located

Owner of Record

Quantity or

Denomination

Current Value

Total. Enter this amount on line 5, Section 4 (Asset and Liability Analysis) of this application . .

Safe deposit boxes rented or accessed locations, box numbers, and contents. Attach additional pages if needed.

Name of Institution

Address

Box Identiﬁcation

Current Value

of Assets

Total. Enter this amount on line 6, Section 4 (Asset and Liability Analysis) of this application . .

Real property. Attach additional pages if needed.

A) Physical address and description: (Single family dwelling, multi-family dwelling, lot, etc.) Mortgage lender’s name and address:

	How is title held: _________________________________
	Purchase Price: _______________
Parcel Number:	Purchase Date: _______________

B) Physical address and description: (Single family dwelling, multi-family dwelling, lot, etc.)	Mortgage lender’s name and address:

	How is title held: _________________________________
	Purchase Price: _______________
Parcel Number:	Purchase Date: _______________

FTB 4905 PIT CI (REV 04-2009) PAGE 5

Who Took Possession

Section 3 – General Financial Information (continued)

C) Physical address and description: (Single family dwelling, multi-family dwelling, lot, etc.)

Parcel Number:

Mortgage lender’s name and address:

How is title held: ____________________________

Purchase Price: _______________

Purchase Date: _______________

Charge cards and lines of credit. Attach additional pages if needed.

Type of	Name and Address of	Minimum Monthly	Credit Limit	Credit	Amount Owed
Account	Creditor Grantor	Payment	Credit Limit	Availability	Amount Owed
Account	Creditor Grantor	Payment		Availability

Total Payments.

Enter total of payments on line 61,

Section 5 of this application. . . . . . . . . . . . . . . . . .

Total Owed.

Enter total owed on line 22, Section 4 of this application. . .

Provide the following information relating to you and your spouse/RDP’s ﬁnancial condition. If you check “Yes”, provide dates, explanation, and documentation.

Court proceedings	m฀No m฀Yes
Repossessions	m฀No m฀Yes
Anticipated increase in income	m฀No m฀Yes
Bankruptcies/receiverships	m฀No m฀Yes
Recent transfer of assets	m฀No m฀Yes
Beneﬁciary to trust, estate, proﬁt sharing, etc. .	m฀No	m฀Yes
Last California income tax return ﬁled	Year	_____
Total exemptions you claim from return:	___________
Adjusted gross income from return:	___________

List any vehicles, equipment, or property sold, given away, or repossessed during the past ﬁve years.

DescriptionValue (Year, make, model of vehicle, or property address)

FTB 4905 PIT C1 (REV 04-2009) PAGE 6

Section 4 – Asset and Liability Analysis

Immediate assets

1. Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Bank accounts/balance (from Section 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Vehicles/available equity (from Section 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Loan/cash surrender value of life insurance (from Section 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Securities (from Section 3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Safe deposit box value of contents (from Section 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Immediate Assets . . . . . . . . . . . .

Real property (from Section 3)

	Address or Location	Current Market	Mortgage	Equity
	Address or Location	Value	Payoff Amount	Equity
		Value	Payoff Amount
7.	A)
8.	B)
9.	C)

Total Equity . . . . . . . . . . . . . . . . . . . . . .

Other assets

10. Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. Judgements/settlements receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13. Aircraft, watercraft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14. Interest in trusts, e.g., trustee, trustor, beneﬁciary, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15. Interest in estates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16. Interest in business entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17. Other assets ______________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18. Other assets ______________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19. Other assets ______________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20. Other assets ______________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Other Assets. . . . . . . . . . . . . . . . .

21. Sum Total of Assets (Immediate, Equity, and Other). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Current liabilities including judgements, notes and other charge accounts. Do not include vehicle or home loans.

22. Total owed for lines of credit (from Section 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23. Taxes owed to IRS (provide a copy of recent notices) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24. Other liabilities _____________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25. Other liabilities _____________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26. Other liabilities _____________________________________. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27. Other liabilities _____________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Liabilities . . . . . . . . . . . . . . . . . .

FTB 4905 PIT CI (REV 04-2009) PAGE 7

How to Edit 4905 Form Ftb Online for Free

It really is super easy to fill out the ftb offer in compromise. Our PDF editor was designed to be assist you to fill out any PDF easily. These are the basic steps to go through:

Step 1: Select the button "Get Form Here".

Step 2: Now you will be on your form edit page. You can include, update, highlight, check, cross, insert or delete fields or phrases.

To fill out the ftb offer in compromise PDF, provide the information for all of the parts:

Provide the required details in the Internal Revenue Service IRS, Legal Documents Marital settlement, Medical Information Physicians, Power of Attorney Power of, Mail your completed and signed, If you have any questions contact, and FTB PIT C REV PAGE box.

You may be requested for particular significant data if you want to prepare the Note Complete all areas that are, Section Personal Information, First name, Last name, Social security number, Date of birth, Other names and aliases ever used, First name of spouse or Registered, Other names and aliases ever used, Last name of spouse or RDP, Social security number, Date of birth, Taxpayers drivers license number, State, and Spouse or RDP drivers license section.

The Current mailing address, Phone number, Cell phone number, Current physical address, Previous address if at current, Name and address of your tax, Phone number, and Cell phone number field should be applied to provide the rights or responsibilities of both parties.

forms Current mailing address, Phone number, Cell phone number, Current physical address, Previous address if at current, Name and address of your tax, Phone number, and Cell phone number blanks to fill

End by reading these sections and filling in the required particulars: Fax phone number, and FTB PIT CI REV PAGE.

Step 3: As soon as you hit the Done button, the finalized document is simply exportable to any kind of of your devices. Or alternatively, it is possible to send it by using mail.

Step 4: Make sure you prevent forthcoming misunderstandings by creating as much as two copies of the document.

4905 Form Ftb – Fill Out and Use This PDF

4905 Form Ftb PDF Details

Form Preview Example

How to Edit 4905 Form Ftb Online for Free

Watch 4905 Form Ftb Video Instruction

4905 Form Ftb isn’t the one you’re looking for?

Please rate 4905 Form Ftb

4905 Form Ftb – Fill Out and Use This PDF

4905 Form Ftb PDF Details

Form Preview Example

How to Edit 4905 Form Ftb Online for Free

Watch 4905 Form Ftb Video Instruction

4905 Form Ftb isn’t the one you’re looking for?

Related Documents

Please rate 4905 Form Ftb

Related Resources