IRS vs FTB Offer In Compromise: Some Tax Debt Settlements Are Easier

IRS Offers In Compromise is almost always easier to get than FTB Offers In Compromise. Here we go through the differences between IRS and FTB Offers In Compromise. Overall, it is easier to get an IRS settlement accepted than an FTB settlement. The main reasons are that the FTB will discriminate based on age and that the FTB balance is often much smaller than the IRS balance.

IRS OIC vs FTB OIC: Two Different Entities, Two Different Sets of Rules

The Internal Revenue Services follows the Offer In Compromise (OIC) rules set forth in the Internal Revenue Manual (IRM). California follows the rules set forth in the California Revenue and Taxation Code (RTC). Watch our video below for an explanation of the differences between the IRS and FTB Offer In Compromise programs.

See our video below for a rundown of the differences and similarities between IRS and California Franchise Tax Board Offer In Compromises:

The key to both types of Offers is to get them in soon. Wait too long and you may not qualify at a later date. We have a guide on both FTB Offers and IRS Offers.

A note on expiring tax debts

You may find submitting a settlement is not the best thing to do if debts are expiring soon. Filing an Offer In Compromise extends the statute of limitations the IRS and FTB have to collect on the debt. Check out our post on tax expiration dates for more information.

Need help with your tax issue? Have a free consultation with one of our expert tax attorneys. Just visit our Contact page or call us at (888) 515-4829. Make sure to check our post on tax relief companies before you hire a firm you hear on the radio or television.

Robert Kayvon, Esq.

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