IRS Offers In Compromise are 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 being 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 run down of the differences and similarities between IRS and California Franchise Tax Board Offer In Compromises:
A note on expiring tax debts
You may find submitting a settlement is not the best thing to do if debt 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.
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