Online Tool Developed for Offer in Compromise Eligibility

The California Department of Tax and Fee Administration (CDTFA) recently released an innovative and simple online screening tool http://www.cdtfa.ca.gov/OIC to help people determine if they are eligible to apply for an Offer-in-Compromise (OIC).

The CDTFA’s OIC program is for taxpayers that do not have, and will not have in the foreseeable future, the income, assets, or means to pay a tax liability in full.

Taxpayers may be eligible for the program if they:

• Have a final tax or fee liability
• Are no longer associated with the business that incurred the liability or a similar type of business
• Do not dispute the amount of tax or fee owed
• Cannot pay the full amount owed in a reasonable amount of time

“CDTFA’s goal is to streamline processes and develop smart and simple systems to make compliance as easy as possible for all Californians,” said Nicolas Maduros, Director. “This tool is just one of the many ways CDTFA is working to provide top-tier customer service for all who do business in this state.”

The new eligibility-screening tool can help taxpayers quickly determine if they are eligible to apply for an OIC by entering financial information to calculate a preliminary offer amount.

Taxpayers can use the preliminary offer amount when they submit an application for an OIC.

•••

View a demonstration video of the OIC eligibility-screening tool here: https://youtu.be/Xk368Ioi0CU