EDD Offer in Compromise

The California Unemployment Insurance Code (CUIC) governs the Employment Development Department’s (EDD) Offer in Compromise program. The EDD Offer in Compromise Program may enable a qualified tax debtor to eliminate an employment tax liability at less than full value. Moreover, the EDD uses a standard OIC form.

The EDD will consider your prospects of increased income or assets which allow payment within a reasonable period. The EDD will also analyze your assets to determine if they have sufficient equity to satisfy the liability. If the amount offered is more than the EDD could expect to collect through involuntary means within four years of the time the offer is made, the EDD will consider accepting your offer.

EDD Offer in Compromise Financial Analysis

The EDD will analyze your net income to determine your ability to pay. You will need to outline all sources of income, including your gross amount of wages/salary along with pay stubs for the last six months. If you are self‑employed, the EDD will ask for your net business income (what you earn after you have paid your ordinary, necessary monthly business expenses) and a current profit/loss statement and balance sheet. You will also need to include net rental income and identify sources of other income.

Once the terms of the compromise agreement are fulfilled, including payment of the amount offered, the following will occur: 1. The liability will be considered satisfied in full; and 2. All tax liens filed or recorded, or both, will be released.

Contact a Tax Lawyer

If you need fast and accurate tax relief, contact an EDD tax attorney today for a free consultation. A  tax attorney can negotiate on your behalf to settle your tax debt. An EDD offer in compromise is similar to an IRS Offer in Compromise, but differs in some ways. Many taxpayers wonder whether they will qualify for an offer in compromise. If you are considering submitting an offer in compromise, make sure you qualify.