Offer in Compromise

Under existing authority granted under Section 5.177.1 of the Los Angeles Administrative Code (LAAC), the Office of Finance has created an Offer in Compromise program that allows financially troubled taxpayers to enter into settlement agreements for their oustanding tax liabilities. Businesses that wish to participate in the program and submit offers must complete an application and provide proof of their inability to pay. Additionally, taxpayers with annual gross receipts exceeding $1,000,000.00 must submit a financial statement and additional documents as required by circumstances. Please review the FAQs below for more information regarding the Offer in Compromise program.