4905Be Form – Fill Out and Use This PDF

The 4905Be form, designated by the State of California Franchise Tax Board, is an Offer in Compromise Booklet for Business Entities. It serves as a guideline for businesses that lack the financial capability to settle their tax liabilities, potentially allowing them to negotiate a reduced payment amount. This option is considered when the proposed amount mirrors the maximum that could be collected within a realistic timeframe, with approval dependent on factors such as the entity's ability to pay, asset equity, and future income forecasts. To explore the possibility of settling your business's tax obligations with an Offer in Compromise, click the button below to begin the application process.

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4905Be Form PDF Details

Business entities in California facing challenges in settling their tax liabilities might find a viable solution through the 4905BE Booklet Offer in Compromise (OIC) program administrated by the Franchise Tax Board. This program is tailored for businesses that lack the income, assets, or means to fulfill their tax obligations either presently or foreseeably. By allowing entities to propose a lesser amount than the non-disputed final tax owing, the OIC serves as a critical financial remedy. The approval of such offers is contingent upon a thorough evaluation, ensuring that the compromised amount aligns with the maximum expected collection within a reasonable timeframe. Key factors such as the entity's ability to pay, asset equities, income projections, expenses, and potential for financial change are rigorously assessed. However, it’s important to note that merely submitting an application does not stall ongoing collection efforts by the state, and certain prerequisites—like filing all required returns and agreeing with the tax amount owed—must be met to even consider processing the application. Should an offer be accepted, the entity might also be bound to a collateral agreement, sharing a portion of future income that surpasses a pre-defined threshold with the state for up to five years. Additionally, the submission of an OIC requires comprehensive financial disclosure, including bank, IRS, property, and vehicle information, to support the application. This in-depth approach ensures that only genuinely qualified businesses can access this form of tax relief and underscores the state’s commitment to fair and practical tax collection strategies.

Question	Answer
Form Name	4905Be Form
Form Length	16 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	4 min
Other names	california offer and compromise form 4905be franchise tax board, franchise tax board offer in compromise form, 4905be, 4905be compromise

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STATE OF CALIFORNIA

Franchise Tax Board

4905BE Booklet

Offer In Compromise

for Business Entities

What you should know before preparing an Offer in Compromise

Are you an OIC	If your business entity does not have the income, assets, or means to pay your
Candidate?	tax liability now or in the foreseeable future, it may be a candidate. The Offer in
	Compromise program allows an entity to offer a lesser amount for payment of a
	non-disputed ﬁnal tax liability.
	Generally, we approve an Offer in Compromise 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:
	• Ability to pay
	• Equity in the entity’s assets
	• Present and future income
	• Present and future expenses
	• The potential for changed circumstances
	• The offer is in the best interest of the state
Can We	We will only process the Offer in Compromise application if you:
Process Your
Application?	• Filed all of the required tax returns. If you have no ﬁling requirement, note it on the
	application.
	• Fully completed the Offer in Compromise application, and provided all supporting
	documentation.
	• Agree with the Franchise Tax Board on the amount of tax you owe.
Will a Collateral	Upon approval, we may require the entity to enter into a collateral agreement for a
Agreement be	term of ﬁve years. Generally, a collateral agreement will be required in cases when the
Required?	entity has signiﬁcant potential for increased earnings. A collateral agreement requires
	a business entity to pay to us a percentage of future earnings that exceed an agreed
	upon threshold.
Is Collection Activity	Submitting an offer does not automatically suspend collection activity. In most cases,
Suspended?	collection action will be suspended until the Offer in Compromise evaluation is
	completed. If delaying collection activity jeopardizes our ability to collect the tax, we
	may continue with collection efforts.
When Should	Do not submit the offered funds until we request them. When we do ask for the funds,
Offered Funds	submit them by cashiers check or money order. We are unable to accept installment
be Submitted?	payments.

FTB 4905BE C1 (REV １０-20１３)

STATE OF CALIFORNIA		OFFER IN COMPROMISE APPLICATION
OFFER IN COMPROMISE GROUP		To be returned
FRANCHISE TAX BOARD	MS A453	To be returned
FRANCHISE TAX BOARD	MS A453
PO BOX 2966
RANCHO CORDOVA CA	95741-2966

The following documentation must be submitted with your Offer in Compromise Application or your application may be returned as incomplete. Please submit copies only. We will not return any documents that you send us. Indicate if any of the items below are not applicable. Additional documentation may be required and requested as the evaluation of the Offer in Compromise proceeds.

Check List of Required Items

□Business Entity Offer in Compromise Finanical Statement, FTB form 4905 FS. (included in this booklet)

□Bank Information:

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฀	฀	ｳ฀	Ｆｉｎａｌ฀ｓｔａｔｅｍｅｎｔｓ฀ｆｏｒ฀ａｎｙ฀ａｃｃｏｕｎｔｓ฀ｃｌｏｓｅｄ฀ｗｉｔｈｉｎ฀ｔｈｅ฀ｐａｓｔ฀ｔｗｏ฀ｙｅａｒｓ．

□

Current Lease or Rental Agreements, either as landlord or tenant.

Real Property Information

Mortgage statements and escrow statements for property the entity currently owns, sold, or gifted in the last ﬁve years.

□IRS Information

If applicable, copy of IRS OIC and acceptance letter or other IRS arrangements.

□Vehicle Information:

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□Power of Attorney

Power of attorney if this offer is submitted by a designated representative.

Mail your completed and signed application to:

OFFER IN COMPROMISE GROUP

FRANCHISE TAX BOARD MS A453

PO BOX 2966

RANCHO CORDOVA CA 95741-2966

If you have questions other than those answered on the previous page of this booklet, contact the Offer in Compromise program at (916) 845-4787.

FTB 4905BE C1 (REV 10-2013)

State of California — Franchise Tax Board

Offer in Compromise Application (Continued)

			Date

Name of Business Entity			California Business Number

Address			Telephone Number

Name and Address of primary contact			Federal Employer ID Number (FEIN)
Telephone Number (	)	Title

Assumer’s Name and Address			California or Federal Identiﬁcation
			Number
Telephone Number (	)

Authorized representative (attach Power of Attorney)
Address
Telephone Number (	)

The undersigned submits this Offer in Compromise for payment of the California state tax liability shown below:

1.AMOUNT OWED

Tax Year(s)____________________________________________________

Amount Due __________________________________________________

Include tax, interest, and penalties.)

2.OFFER

The sum of $ ________________________________ is offered in compromise. We will instruct you when to pay the the offer amount. Do not send any funds now.

If this Offer in Compromise is denied, the Franchise Tax Board is to:

__________ Retain any amounts deposited and credit it to the undersigned’s liabilities.

__________ Return the amount deposited.

FTB 4905BE C1 (REV １０-20１３)

State of California — Franchise Tax Board

Offer in Compromise Application (Continued)

3. SOURCE OF FUNDS
a. Is all or part of the amount being offered a loan? □ Yes	□ No

If yes, please provide the following information and attach a copy of the loan agreement.

Amount borrowed $ __________________________________________

Name of lender ______________________________________________

Lender’s address ____________________________________________

Lender’s telephone number ____________________________________

b. Is all or part of the amount being offered a gift?	□ Yes	□ No
If yes, please provide the following information:

Amount of gift $______________________________________________

Name of donor ______________________________________________

Donor’s relationship to the entity_________________________________

c.Describe sources of offered funds other than those listed in a or b.

___________________________________________________________________________________________

4.OWNERSHIP

List any individual or corporate owners with 25% or more interest in this entity.

Name of Owner(s)% Owned

________________________________________________________________________________________________

(Attach a separate sheet scheduling any parent or subsidiary entity relationship.)

FTB 4905BE C1 (REV 10-2013)

State of California — Franchise Tax Board

Offer in Compromise Application (Continued)

5.BASIS FOR THE OFFER

The following facts and reasons are submitted as grounds for acceptance of this offer:

____________________________________________________________________________________________

(If more space is needed, please attach additional pages.)

6.It is understood that this offer will be considered and acted upon in due course and that it does not relieve the entity from the liability sought to be compromised unless and until the offer is accepted by the Franchise Tax Board and there has been full compliance with the terms of the agreement including any collateral agreement.

7.It is agreed that, except for any amounts deposited in connection with this offer, the Franchise Tax Board will keep all payments and other credits made to the account for the periods covered by this offer, and that the Franchise Tax Board will keep any and all amounts to which the entity may be entitled under the Revenue and Taxation Code, due through overpayments of any tax, penalty or interest, for any periods ending before the end of the calendar year in which this offer is accepted.

8.It is further agreed that upon notice to the entity of the acceptance of the offer, the entity 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 the corporation under the compromise agreement or collateral agreement are completely performed. In the event of a default by the corporation on the collateral agreement, it is agreed that the Franchise Tax Board may disregard the amount of the offer and retain all amounts previously deposited under the offer and proceed to collect the balance of the original liability.

_________________________________________________________________________________________________

Under penalties 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, it is (or they are) true, correct and complete.

Date of the Statement	Signature	Title
____________________________	_________________________________________	_______________________
____________________________	_________________________________________	_______________________

FTB 4905BE C1 (REV １０-20１３)

State of California ﾱ Franchise Tax Board

Business Entity Offer in Compromise Financial Statement

Please furnish the information requested on this form along with the Offer in Compromise. It is important that all questions are answered. If a question doeｖ＃ｑｒｗ＃ｄｓｓｏ｜／＃ｓｏｈｄｖｈ＃ｈｑｗｈｕ＃ｗｋｈ＃ｚｒｕｇ＃ﾳｑｒｑｈ１ﾴ＃Ｌｉ＃｜ｒｘ＃ｕｘｑ＃ｒｘｗ＃ｒｉ＃ｖｓｄｆｈ／＃ｓｏｈｄｖｈ＃ｄｗｗｄｆｋ＃ｄｇｇｌｗｌｒｑｄｏ＃ｓｄｊｈｖ＃＋ｚｕｌｗｈ＃｜ｒｘｕ＃ｈｑｗｌｗ｜ﾶｖ＃ｑｄｐｈ＃ｄｑｇ＃ｑｘｐｅｈｕ＃ｒｑ＃ｄｏｏ＃ｄｇｇｌｗｌｒｑｄｏ＃ｓｄｊｈｖ，１＃

1. Business Entity Information

Entity Name		Entity Number

DBA	Type of Business/Industry	FEIN

		SOS

Mailing Address	Physical Address	Telephone Number
		(	)

2. List of Entity Officers/General Partners/Managing Members

		Business Telephone
Name	Business Address	Number		Title
		(	)
		(	)
		(	)
		(	)

3a. Bank Accounts (List all types of accounts including payroll, checking, savings, certificates of deposits, etc.) held during the past three years. Please provide copies of bank statements for the last (or final) three months for every account held.

Instituion Name

Address

Type of Account

Routing Number

Account Number

Balance

Total ►

3b. Bank, Finance and Business Credit cards (Lines of credit)

Instituion Name

Address

Credit Limit

Amount Owed

Credit Available

Minimum Monthly Payments

Total ►

3c. Safe Deposit Boxes (List contents of all deposit boxes rented or accessed by your entity)

Instituion Name

Address

Box Number Contents

Estimated Market Value

Total ►

FTB 4905FS (NEW 01-2007) PAGE 1

Assets and Liabilities

Ｓｏｈｄｖｈ＃ｉｘｕｑｌｖｋ＃｜ｒｘｕ＃ｈｑｗｌｗ｜ﾶｖ＃most recent balance sheet and profit and loss statement. Include all interests in estates, trusts, and other property rights, including contingent interests and remainders.

4.	Statement of assets and liabilities as of ____/____/____
		(date)

a. Assets		Cost (less
a. Assets		depreciation	Fair Market Value

Cash

Cash surrender value of insurance (See item 5)
Accounts Receivables (See item 6a)
Notes receivables (See item 6b)
Real Estate (See item 8)

Machinery and equipment (See item 9)

Trucks and delivery equipment (See item 10)

Automobiles and Motorcycles (See item 11)

Aircraft (See item 12)

Watercraft (See item 13)
Securities (See item 14)
Judgments/Settlements not included in Accounts Receivables
(See item 15)

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(See item 16)

Other assets (See item 17)

	Total Assets ►
b. Liabilities

Loans on insurance (See item 16)
Accounts payable
Notes payable
Mortgages (See item 8)
Judgments (See item 15)

Reserves (itemize)


Loans to officers/partners (See item 16)
Other (describe)

	Total Liabilities ►

5. Life insurance policies

Policy Number

Insurance

Company

Name

Policy Amount

Present

Cash

Surrender

Value Plus

Accumulated

Dividends

Policy Loan

Date Made

Automatic

Premium

Payments

Date Made

Total ►

FTB 4905FS (NEW 01-2007) PAGE 2

6. Accounts and Notes Receivable

a. Accounts Receivable

Address

Book Value

Amount Due

		Total ►
b. Notes Receivable	Address	Book Value	Amount Due

Total ►

7. Pending Litigation and Pending Judgments

Case Number

Court of Jurisdiction

Court Address

Judgment

Amount

Total ►

8. Real Estate

Property Address/Assessor Parcel Number

Cost

Fair Market

Value

Balance Due on Mortgage

Equity Value

Total ►

9. Machinery and Equipment

Description (Manufacturer, Model Number, Function)

Cost (less)

depreciation)

Fair Market Value

Total ►

FTB 4905FS (NEW 01-2007) PAGE 3

10.	Trucks and Delivery Equipment
						Cost (less)
	Description (Make, Model, Year, and License Plate Number)					depreciation)	Fair Market Value





					Total ►
11.	Automobiles and Motorcycles
						Cost (less)
	Description (Make, Model, Year, and License Plate Number)					depreciation)	Fair Market Value




					Total ►
12.	Aircraft
Year, Model Number, Model Name, and						Cost (less)
Tail (N) Number			Hangar Location			depreciation)	Fair Market Value




					Total ►
13.	Watercraft
Year, Make, Model and Vehicle						Cost (less)
Registration Number (CF Number)			Docking Location			depreciation)	Fair Market Value




					Total ►
14.	Securities (Stocks, bonds, etc.)
		Name of Security		Number of Shares		Cost	Fair Market Value





			Total ►
15.	Judgments/Settlements (not included in Accounts Receivable)
Case Number		Court and Jurisdiction			Judgment Amount	Date Recorded	Award Amount





						Total ►

FTB 4905FS (NEW 01-2007) PAGE 4

How to Edit 4905Be Form Online for Free

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step 1 to filling out franchise tax board offer in compromise

Put down the data in the Name of Business Entity, California Business Number, Date, Address, Telephone Number, Name and Address of primary contact, Federal Employer ID Number FEIN, Telephone Number, Title, Assumers Name and Address, California or Federal, Telephone Number, and Authorized representative attach area.

franchise tax board offer in compromise Name of Business Entity, California Business Number, Date, Address, Telephone Number, Name and Address of primary contact, Federal Employer ID Number FEIN, Telephone Number, Title, Assumers Name and Address, California or Federal, Telephone Number, and Authorized representative attach blanks to fill out

The software will request details to conveniently fill in the box Authorized representative attach, Telephone Number, The undersigned submits this Offer, AMOUNT OWED, Tax Years, Amount Due, Include tax interest and penalties, OFFER, The sum of is offered in, If this Offer in Compromise is, Retain any amounts deposited and, and Return the amount deposited.

stage 3 to completing franchise tax board offer in compromise

The SOURCE OF FUNDS, a Is all or part of the amount, If yes please provide the, Amount borrowed, Name of lender, Lenders address, Lenders telephone number, b Is all or part of the amount, If yes please provide the, Amount of gift, Name of donor, and Donors relationship to the entity area will be your place to put the rights and obligations of both sides.

Entering details in franchise tax board offer in compromise step 4

End by analyzing all of these sections and filling out the required data: c Describe sources of offered, OWNERSHIP, List any individual or corporate, Name of Owners, Owned, and Attach a separate sheet scheduling.

Filling in franchise tax board offer in compromise part 5

Step 3: Click the "Done" button. Now it's possible to export the PDF document to your gadget. As well as that, you can easily send it by means of electronic mail.

Step 4: In order to avoid any kind of headaches down the road, you will need to create minimally a few copies of your form.

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