FTB Settlements – Offer in Compromise

To settle a tax debt with the FTB for less money than you owe, an offer in compromise is a great option. The FTB OIC (Offer in Compromise) program is unique because the FTB does not presently require an initial payment or a processing fee to begin negotiations. Taking advantage of current tax laws by using the proper legal procedure to resolve your California Franchise Tax Board Collections is important. It’s imperative that you have an Offer in Compromise attorney behind you so that you can resolve your tax debt the right way.

Submitting an FTB Offer in Compromise involves more than simply proposing a lower payment amount. The FTB will carefully review your financial situation, including your income, monthly living expenses, assets, and any equity you hold in real estate or other property. They use this information to calculate your “reasonable collection potential,” which is the figure that ultimately determines whether your offer will be accepted.

The process requires thorough documentation, and incomplete or inconsistent submissions are a common reason offers get rejected. This is why having an experienced OIC attorney prepare and present your case is so important. An attorney can help you accurately represent your financial situation, anticipate FTB objections, and structure your offer in a way that gives you the strongest possible chance of approval.

Once an offer is accepted, you will be required to remain in full tax compliance for a period of years, meaning all future returns must be filed on time and all taxes paid. Montgomery & Wetenkamp guides clients through every stage of this process, from initial eligibility review through final resolution.

Do you qualify for an Offer in Compromise?

If you currently do not have the income, assets, or means to pay your taxes and don’t foresee the ability to in the future, you may qualify as a candidate! An OIC allows you to settle a tax debt for a lesser amount that is due.

Usually, the California Franchise Tax Board (FTB) will approve an Offer in Compromise (OIC) when the amount offered represents the most they expect to collect within a reasonable period.

Each case is evaluated on a case-by-case basis according to the set of facts and circumstances.

Contact us today so that we can help you resolve your tax debt the right way and give you options. We can answer any questions about an Offer in Compromise and resolve your tax troubles.