Ftb Ca Oic Details

In this blog post, we will be going over the new 5th edition of the 4905Be form. This form is compiled by the IRS and can be found on their website. The purpose of this form is to report any changes in your income or deductions from last year. It has a lot of information about who needs to file, how long it takes for a filing status change to occur, and what you need before you start filling out the form. This article provides helpful guidelines as well as an example that shows how to complete parts of the document correctly so that you know exactly where everything goes without having any questions afterwards.

The listing includes details about the 4905be form. It's going to present you with the likely time it may require you to prepare the form and some additional details.

QuestionAnswer
Form Name4905Be Form
Form Length16 pages
Fillable?Yes
Fillable fields748
Avg. time to fill out38 min 25 sec
Other namesca ftb 4905 form, california ftb offer in compromise, 4905be, 4905be compromise

Form Preview Example

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)

2

STATE OF CALIFORNIA

 

OFFER IN COMPROMISE APPLICATION

OFFER IN COMPROMISE GROUP

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:

Completebankstatementsforallaccountsheldforthepasttwelvemonths.

Finalstatementsforanyaccountsclosedwithinthepasttwoyears.

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:

Copiesofloan/leasestatementsforanyvehicles.

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)

3

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)

4

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)

5

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)

6

State of California 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

 

 

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)

 

 

 

 

 

 

Ordqv#wr#hqwlw|ᄊv#riilfhuv#+qrw#lqfoxghg#lq#Qrwhv#Uhfhlydeohv/#deryh,#

 

 

(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

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Uhflslhqwᄊv#Qdph#dqg#Wlwoh#

Date Loan

 

Outstanding

Originated

Loan Amount

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

17. Other Assets

Description

Estimated Value

Location

Total

18. Business References

 

Relationship

 

 

 

Client/Vendor Name

to Entity

Address

 

Telephone Number

 

 

 

(

)

 

 

 

 

 

 

 

 

(

)

 

 

 

 

 

 

 

 

(

)

 

 

 

 

 

 

 

 

(

)

 

 

 

 

 

 

 

 

(

)

 

 

 

 

 

 

 

 

(

)

 

 

 

 

 

FTB 4905FS (NEW 01-2007) PAGE 5

19.

Statement of Income ᄆ#Business Entity

 

 

IMPORTANT: Please furnish the information requested below (from income tax returns, as adjusted, for the last two years

and from records for current year from January 1 to date).

a. Gross Income

 

20_____

20_____

Jan 1 to

20_____

Gross sales or receipts (Subtract returns and allowances)

 

 

 

 

Cost of good sold

 

 

 

 

 

Gross profit ᄆ#trading or manufacturing

 

 

 

 

 

Gross profit ᄆ#from other sources

 

 

 

 

 

Interest income

 

 

 

 

 

Rents and royalties

 

 

 

 

 

Gains and losses (From Schedule D)

 

 

 

 

 

Dividends

 

 

 

 

 

Other (Specify)

 

 

 

 

 

 

 

 

 

 

 

Other (Specify)

 

 

 

 

 

 

 

 

 

 

 

Other (Specify)

 

 

 

 

 

 

 

 

 

 

 

 

Total Income

 

 

 

 

b. Deductions

 

 

 

 

 

Compensation of officers

 

 

 

 

 

Salaries and wages (Not deducted elsewhere)

 

 

 

 

 

Rents

 

 

 

 

 

Repairs

 

 

 

 

 

Bad Debts

 

 

 

 

 

Interest

 

 

 

 

 

Taxes

 

 

 

 

 

Losses

 

 

 

 

 

Dividends

 

 

 

 

 

Depreciation and depletion

 

 

 

 

 

Contributions

 

 

 

 

 

Advertising

 

 

 

 

 

Other (Specify)

 

 

 

 

 

 

 

 

 

 

 

Other (Specify)

 

 

 

 

 

 

 

 

 

 

 

Other (Specify)

 

 

 

 

 

 

 

 

 

 

 

 

Total Deductions

 

 

 

 

b. Net Income (loss)

 

 

 

 

b. Nontaxable income

 

 

 

 

FTB 4905FS (NEW 01-2007) PAGE 6

20. Salaries paid to principal officers and dividends distributed

IMPORTANT: Please show salaries paid to principal officers for the most recent accounting period.

a. Officers Names and Titles

Salaries

Dividends Paid

 

 

 

 

President

 

 

Vice President

 

 

Treasurer

 

 

Secretary

 

 

Member

 

 

Partner

 

Total

21.Disposal of assets ᄆ#From the beginning of the taxable period covered by this offer in compromise to the present date, has there been a disposition of any assets or property with a cost or fair market value of more than $500, except for full value at the time of sale, transfer, exchange, gift or other disposition?

No Yes (If yes, please furnish the following information.)

Description of Asset

 

Fair Market Value

Consideration

Relationship of Transferee

Date of Transfer

When Transferred

Received

to Taxpayer

 

 

 

 

22.Are there any assets or an asset or an interest in assets either actual or contingent, other than those listed above?

No Yes (If yes, please describe the assets.)

23a. Are foreclosure proceedings

b. If yes, please give location of real estate.

c. Was the government made

pending on any real estate

 

a party to the suite?

which the entity owes or has

 

 

an interest in?

 

 

No

Yes

 

No

Yes

24a. Are bankruptcy or receivership proceedings pending?

b. Is it in process of liquidation?

No

Yes

No

Yes

 

25. What is the prospect of an increase in value of assets or in present income? (Please give general statement.)

 

26.Affidavit

Under penalties of perjury, I declare that I have examined the information given in this statement and, to the best of my knowledge and belief, it is true, correct, and complete, and I further declare that there are no assets, owned either directly or indirectly, or income of any nature other than as shown in this statement.

26a.Date of this statement

b. Signature

c. Title

FTB 4905FS (NEW 01-2007) PAGE 7

Questions and Answers

Q.What does the Franchise Tax Board consider a fair offer in relation to the amount due?

A.Generally, we will accept an offer when the amount offered is more than we can expect to collect within a reasonable period of time.

Q.Can I make payments on the offered amount?

A.No, we require a lump sum payment of the offered amount.

Q.Can prior payments be applied to the offered amount?

A.We cannot apply prior payments toward the offered amount. However, we will consider prior payments and the offered amount compared to the total liability when evaluating your offer.

Q.My Internal Revenue Service OIC has been accepted. Will the FTB automatically approve my offer?

A.No, we will evaluate your Franchise Tax Board offer separately from your Internal Revenue Service offer.

Q.If the Franchise Tax Board determines that my offer is not acceptable, will I be contacted?

A.Yes. We will contact you to discuss your account and to determine the most appropriate resolution. For example, if we determine that the corporation has the ability to make monthly payments which will exceed the amount offered, we will work with you to establish an installment agreement.

Q.Will state tax liens be released if the offer is accepted?

A.Generally, we release state tax liens upon final approval of your Offer in Compromise.

Q.Do I need to have someone represent me?

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

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

A.Part or all of the entity taxes may be dischargeable under the bankruptcy code. If this is a consideration, you may want to seek legal advice.

Q.Can I apply for an Offer in Compromise if I have no funds to offer?

A.No, we will not accept a zero dollar offer. Your offer must represent the most the Franchise Tax Board can expect to collect over a reasonable period of time.

Q.What is the collateral agreement?

A.This is a contractual agreement between the entity and the State of California, where the state agrees not to pursue collection of amounts owed it by the entity in exchange for a pledge of a percentage of entity income that is in excess of a specified amount. The collateral agreement is in conjunction with an Offer in Compromise and is generally for a period of five years.

Q.If my offer is approved, will the entity have to sign a collateral agreement?

A.If the business entity has limited potential for increased earnings, we will generally not require a collateral agreement.

FTB 4905BE C1 (REV฀10-2013)

15

FTB 4905BE C1 (REV 10-2013)

How to Edit 4905Be Form

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