West Virginia Cd 3 PDF Template

The West Virginia CD-3 form, officially known as the Offer in Compromise Form, is a document submitted by taxpayers to negotiate a settlement of their state tax liabilities. By completing this form, individuals express their intent to pay a reduced amount to the state rather than the full amount owed. Understanding the details of this form can help taxpayers navigate their options effectively.

If you're ready to take control of your tax situation, fill out the CD-3 form by clicking the button below!

Overview

The West Virginia CD-3 form is a critical tool for taxpayers navigating financial difficulties related to state tax liabilities. This document serves as an official request to the West Virginia State Tax Department, allowing taxpayers to propose a compromise on their outstanding tax debts. By submitting this form, individuals can express their intent to settle their total liability for various types of taxes, specifying the amounts for tax, interest, and additional penalties incurred over time. The CD-3 form lays out the terms of the offer, including an initial payment, subsequent payments upon acceptance, and monthly installments, if necessary. Additionally, it highlights the importance of future compliance with tax laws—taxpayers must maintain good standing for five years following acceptance of the offer. This form also requires supporting documents like a financial statement, ensuring taxpayers provide a clear picture of their financial situation. Understanding the nuances of the CD-3 can significantly impact the outcome of one’s tax obligations, offering a path to stability while navigating state tax challenges.

West Virginia Cd 3 Preview

	West Virginia State Tax Department
	Offer In Compromise
	Form CD-3 (Revised 4/05)


Names and Address of Taxpayer			Taxpayer Representative
			Name:
			Address
			Phone
Social Security or Tax Identification Number			Phone
Social Security or Tax Identification Number

To: State Tax Commissioner		Date	Amount of Offer	Total Liability
			$	$

[1]This offer is submitted by the taxpayer to compromise a state tax liability for the following taxes and periods:

TYPE TAX

PERIODS

TAX

INTEREST

ADDITIONS

TOTAL

[2]The total amount of $__________________ is offered to compromise this liability. The total amount will be paid as follows:

a)Initial Payment (with this offer): $_____________

b)Payment on Acceptance of Offer: $____________

c)Monthly Payment: $_______________ for ________ Month

Interest at the legal rate under W. Va. Code §11-10-17 will accrue on the balance, if any, until it is paid in full.

As a part of the consideration for this offer, the Taxpayer agrees that:

[3]The State shall retain all payments and credits made to this liability prior to submission of this offer, and the State shall retain any overpayments or refunds to which the taxpayer may be entitled for periods extending to the end of the year in which this offer is accepted, or until the amount of the offer is paid in full. Any such refund received by the taxpayer after this offer is filed will be returned immediately.

[4]All payments made under the terms of this offer shall be applied in the best interest of the State.

[5]Upon acceptance of this offer, the taxpayers will have no right to contest the amount of the liability compromised.

[6]If there is a default in any payment or other terms, including Item B, the State may collect the entire unpaid balance of the offer, or may disregard the amount of the offer and apply all amounts previously paid under the offer against the liability sought to be compromised and, without further notice of any kind, assess and collect the total liability.

[7]The taxpayer agrees to the suspension of the period of limitations on assessment and collection until the total amount of the offer is paid, and there is full compliance with all terms and conditions of the compromise and for one year thereafter. Any compromise shall constitute an agreement to extend the statutes of limitation under Code §11-10-15(c)(1) and §11-10-16(e).

[8]Any compromise is conditioned upon the taxpayer timely complying with all state tax laws regarding filing returns and payment of taxes for a period of 5 years after the offer is accepted.

[9]A financial statement (433A and/or 433B), and a statement of the facts and reasons as grounds for this compromise, must be attached.

[10]The taxpayer remains liable for the full amount of the liability, unless and until the offer is accepted in writing by the Commissioner or a delegated official, and there has been full compliance with the terms of the offer.

Under penalties of perjury, I declare that I (we) have examined this offer, including accompanying statements, and to best of my (our) knowledge and belief it is true and correct and complete, and that I am authorized to make this offer on behalf of the taxpayer.

Name of Taxpayer(s)

Its

Signature

Date

OFFERS IN COMPROMISE - INSTRUCTIONS

Authority

W. Va. Code §11-10-5q(c) allows the State Tax Commissioner to compromise a tax liability, which includes all tax, penalty, interest, or additions to tax.

Reason for Compromise

We are allowed to compromise a liability for one or both of the following two (2) reasons: (1) doubt as to whether the taxpayer owes the liability; (2) doubt that we can collect the full amount of the liability. This form and instructions is only used in cases of doubt as to collectibility.

Policy

We will accept an offer in compromise when it is unlikely that we can collect the tax liability in full, and the amount offered reasonably reflects the amount we can collect. An offer in compromise is a legitimate alternative to declaring a case as currently not collectible or to a long-term installment agreement. Our goal is to collect what is potentially collectible at the earliest possible time and at the least cost to the State.

The success of the compromise will be assured only if taxpayers make adequate compromise proposals consistent with their ability to pay the State. Taxpayers are expected to provide reasonable documentation to verify their ability to pay. The goal is a compromise which is in the best interest of both the taxpayer and the State. Where an offer in compromise appears to be a workable solution, the employee assigned the case will discuss the compromise with the taxpayer and, when necessary, assist in preparing the required forms. The taxpayer will be responsible for making the first offer for compromise.

Practical Consideration

It is the taxpayer's responsibility to show us why it would be in our best interest to accept your proposal. When we consider your offer we ask the following questions: (1) Could we collect the amount owed through liquidation of your assets or through an installment agreement? (2) Could we collect more from your assets and future income than is offered? (3) Would collection in the future result in more payment than is offered? (4) Would the public believe that the acceptance of your offer was a reasonable action?

The fact that you have no assets or income at this time from which the State could collect the liability does not mean that the State should simply accept any offer because it is all we can collect now. It would generally be better for us to reject a nominal amount and wait to see what collection potential would arise during the remainder of our ten-year collection period.

Additional Consideration

We believe that you benefit if we accept your offer because you can manage your finances without the burden of a tax liability. Therefore, we may require either: (1) A written agreement that will require you to pay a percentage of future earnings; and/or (2) A written agreement to give up present or future tax refunds.

Tax Compliance

(1)We will not accept your offer if you have not filed all tax returns. (2) We will also require that the taxpayer comply with all future filing and payment requirements. The terms of the offer require future compliance for a period of five (5) years.

Collection and Payments

The submission of an offer does not automatically suspend collection. If it appears the offer was filed to delay collection of the tax or that delay would hinder our ability to collect the tax, we will continue collection efforts. If you have agreed to make installment payments before you made the offer, those payments should continue.

Special Instructions for Offer in Compromise Form

(1)The Offer in Compromise form must be used to submit an offer. The form must be filed with the Compliance Division. If you have been working with a specific employee on your case, file the offer with that employee.

(2)Your full name, address and taxpayer identification number(s) must be entered at the top of the Offer form. If this is a joint liability (husband and wife) and both wish to make an offer, both names must be shown. If you are individually liable for a liability and are also jointly liable for another liability, and only one person is submitting an offer, only one offer must be submitted. If you are individually liable for one liability and jointly liable for another and both joint parties are submitting an offer, two (2) Offers must be submitted, one (1) for separate liability and one (1) for the joint liability.

(3)You must list all liabilities to be compromised in item (1). The types of tax, the periods, and the amounts must be specifically identified.

(4)The total amount you offer must be entered in item (2). The amount must not include any amount which has already been paid or collected on the liability. The amount submitted with the offer is entered in 2(a); the amount is to be paid on acceptance of the offer is entered in (2) (b) and any amount to be paid in installments, is entered in 2(c) in item 2. You should pay the amount of the offer in the shortest time possible, or we will reject your offer. Under no circumstances should the payment extend beyond two (2) years. Interest is due at the legal rate from the date of acceptance to the date of full payment.

(5)You must state in detail in item (9) why the State should accept your offer. Attach additional pages as necessary. Describes in detail why you believe the State cannot collect more than offered from your assets and your present and future income.

(6)The taxpayer(s) must sign and date the offer. If a person other than the taxpayer signs the offer, a power of attorney must be submitted with the offer.

(7)Form 433-A, Collection Information Statement for Individuals and/or Form 433-B Collection Information Statement for Business must accompany the Offer. A sole proprietorship liability requires 433-A for the individual and 433-B for the business. A business tax liability requires a 433-B for the business, and 433-A for the sole proprietor, partner(s) or responsible officer(s) seeking a compromise of personal liability. All blocks on forms 433-A and 433-B must be completed. When you submit Form 433-A and/or 433-B, documentation should be submitted to verify values of assets, encumbrances and income and expense information listed on the collection information statement.

What You Are Agreeing To

Please read the Offer in Compromise Form carefully so that you understand that you are agreeing to:

(1)The period for collection is suspended while the offer is pending, while any amount offered remains unpaid, and for one (1) year after all terms and conditions of the offer are fulfilled.

(2)You won't contest or appeal the amount of the liability if your offer is accepted.

(3)You give up of overpayments (refunds) for all tax periods through the year the offer is accepted, and until the amount of the offer is paid in full.

(4)The collection of the entire tax liability, if you do not comply with all the terms of the offer, i.e. payment, future compliance.

↓ West Virginia Cd 3

File Properties

Fact Name	Description
Governing Law	The Offer in Compromise is governed by W. Va. Code §11-10-5q(c), which allows the State Tax Commissioner to compromise tax liabilities.
Purpose of Form	The CD-3 form is utilized by taxpayers to propose a compromise on state tax liabilities due to doubt about the owed amount or collection feasibility.
Required Payments	Taxpayers must indicate an initial payment, a payment upon acceptance, and subsequent monthly payments to resolve the tax liability through the compromise.
Suspension of Collection	Submission of the CD-3 does not automatically halt collection processes unless certain conditions are met. The state may continue collection efforts if necessary.
Future Compliance	Taxpayers must adhere to all state tax laws for the five years following the acceptance of their compromise offer to remain compliant.
Documentation Requirements	Form 433-A and/or Form 433-B must accompany the CD-3 form, providing a detailed financial statement to justify the offer amount.
Liability After Offer	The taxpayer remains fully liable for the total tax amount until the offer is formally accepted by the Commissioner and all terms are complied with.

Instructions on Utilizing West Virginia Cd 3

Follow these steps to fill out the West Virginia Offer In Compromise Form CD-3 correctly. Ensure you have all necessary documents ready before you start. This process will require you to provide accurate financial information and specific details regarding your tax liability.

Enter the names and address of the taxpayer at the top of the form, along with the Taxpayer Representative’s information, if applicable.
Provide the taxpayer’s Social Security or Tax Identification Number.
Address the form to the State Tax Commissioner and include the date of submission.
In item (1), list all types of taxes, periods, interest, and additions relevant to your tax liability. Ensure accuracy.
Specify the total amount you are offering to compromise this liability in item (2). Break it down as follows:

a) Initial Payment (with this offer): Enter the amount.
b) Payment on Acceptance of Offer: Enter the amount.
c) Monthly Payment: Enter the amount and specify the duration in months.

Attach a financial statement (Forms 433A and/or 433B) along with your explanation for the compromise in item (9).
Review all entries for accuracy. Sign and date the form. If someone else signs on behalf of the taxpayer, include a power of attorney.

Be aware that submitting the form begins a review process by the State Tax Department. They will evaluate your offer based on your documented financial situation and compliance history.

Important Facts about West Virginia Cd 3

What is the West Virginia CD-3 form?

The West Virginia CD-3 form is used to submit an Offer in Compromise to the State Tax Department. This form allows taxpayers to negotiate and settle their state tax liabilities for less than the full amount owed. It includes information on the taxpayer, the amount of the offer, the total liability, and other pertinent details necessary for consideration by the State Tax Commissioner.

Who is eligible to submit an Offer in Compromise using the CD-3 form?

Taxpayers facing difficulties in paying their state tax liabilities may qualify for submitting an Offer in Compromise. The state allows these offers when there is doubt about either the validity of the debt or the ability to collect it fully. However, taxpayers must comply with all tax laws, have filed all required returns, and provide supporting documentation with their offer.

What information must be included in the CD-3 form?

The form requires several critical pieces of information. You must provide your name, address, and taxpayer identification number. Additionally, detail the types of tax owed, the corresponding periods, and specific amounts for taxes, interest, and any additions. Be sure to offer a complete rationale for why your proposal should be accepted, explaining the inability to pay more based on your financial situation.

What happens once the CD-3 form is submitted?

After submitting the form, the State Tax Department will review the offer. It's crucial to understand that submitting the CD-3 does not automatically stop collection efforts. If the offer is under review and the state believes there could still be a delay in collecting owed taxes, they may continue with collection actions. Be proactive and continue any agreed-upon installment payment plans during this time.

How should payments be structured in the CD-3 form?

You will need to outline your payment plan clearly on the form. The total offer should include an initial payment to accompany the submission, a payment due upon acceptance, and a monthly payment amount spread over a specified duration. The payment terms should be set for less than two years to ensure better chances of acceptance. Interest may also apply to any remaining unpaid balance until fully paid.

What are the consequences if the offer is accepted?

Accepting the offer means you agree not to contest the compromised liability. You will also forfeit any tax refunds for prior periods until the offer is fully paid. Moreover, compliance with state tax laws is critical for five years post-acceptance. Failure to adhere to the agreed terms may result in the state collecting the entire original tax liability, and the opportunity for future offers may be diminished.

Common mistakes

Filling out the West Virginia CD-3 form accurately is essential for taxpayers seeking to resolve their tax liabilities. One common mistake involves leaving out necessary taxpayer identification details. It is crucial to provide both the name and social security or tax identification number, as incomplete information can lead to delays or denial of the offer.

Another frequent error is not clearly specifying the types of tax, periods, and amounts in item (1). Each liability must be explicitly identified. Not doing so may result in the form being rejected since it does not meet the requirements to identify what is being compromised.

Inadequate explanation of why the state should accept the offer is also a mistake. In item (9), the taxpayer needs to provide detailed reasoning regarding the inability of the state to collect a greater amount than what is being proposed. A vague or poorly justified submission could lead to rejection of the offer.

Many taxpayers mistakenly fail to attach the required forms, such as the 433-A or 433-B. These forms are fundamental, as they present the financial situation of the taxpayer. Additionally, the absence of documentation supporting claimed values may also hinder the process.

Not signing and dating the form represents another significant issue. Both the taxpayer's signature and the date of signing are mandatory. If someone other than the taxpayer is signing, it is imperative to include a power of attorney to validate the submission.

Moreover, some individuals overlook the payment details. The total amount offered should not include amounts already paid or collected. Accurate entries in sections 2(a), 2(b), and 2(c) are needed to avoid complications arising from incorrect payment structure.

Lastly, failing to comply with future tax requirements can lead to dire consequences. The offer includes a stipulation that taxpayers must meet all state tax obligations for five years after acceptance. Ignoring this condition could result in the loss of agreement benefits and re-establishment of the original tax liability.

Documents used along the form

The West Virginia CD-3 form is a critical document used for submitting an offer in compromise for state tax liabilities. Along with this form, there are several other documents that are often required to support the process. Below is a list of related forms and documents that may be necessary for a successful submission of the CD-3 offer.

Form 433-A: This is the Collection Information Statement for Individuals. It provides detailed financial information about the taxpayer's income, expenses, assets, and liabilities. This form helps the state assess the taxpayer’s ability to pay.
Form 433-B: This is the Collection Information Statement for Businesses. Similar to Form 433-A, this document provides a comprehensive view of a business’s financial situation, including income statements and balance sheets, which are crucial for evaluating the offer.
Power of Attorney (POA): If a taxpayer is working with a representative, a POA document must be submitted. It authorizes the representative to act on behalf of the taxpayer in matters concerning the offer.
Financial Documentation: Documentation such as bank statements, pay stubs, or tax returns may be necessary to substantiate the details provided in Forms 433-A and 433-B. These documents verify the claimed income and expenses.
Statement of Grounds: A detailed statement explaining the reasons for the offer in compromise must accompany the CD-3 form. This statement should articulate why the state should accept the offer based on the taxpayer's financial situation.
Tax Returns: All required tax returns must be filed before submitting the offer. The state requires that taxpayers comply with filing obligations as a pre-condition for acceptance of the offer.
Payment Check: An initial payment must accompany the offer. A check or other form of payment should be made out for the initial amount specified in the offer.
Confirmation of Compliance: A document may be needed to confirm that the taxpayer agrees to comply with all future tax filing and payment requirements for a specified period, usually five years after acceptance of the offer.
Additional Correspondence: Any correspondence or communication involving discussions with state officials or relevant agents can also bolster the submission, illustrating efforts made toward compliance or negotiation.

Submitting the West Virginia CD-3 form along with the necessary supporting documents creates a comprehensive package that enhances the chances of acceptance. Each document plays a significant role in presenting a clear financial picture to state authorities, ultimately aiding in reaching a favorable resolution for tax liabilities.

Similar forms

Form 656 - Offer in Compromise (OIC) (IRS): This IRS form is similar to the West Virginia CD-3 form, as both allow taxpayers to propose a settlement amount to satisfy tax liabilities. Each form requires a detailed financial statement to support the offer and includes guidelines for payment terms.
Form 8821 - Tax Information Authorization: Used by taxpayers to allow representatives to receive tax information from the respective agency. Like the CD-3, it involves consent and impacts how tax liabilities are managed.
Form 1040 - U.S. Individual Income Tax Return: While primarily a reporting document, both forms involve disclosing personal and financial information. Each may require detailed documentation about income and expenses to determine tax liability.
Form 433-A - Collection Information Statement for Individuals: This form requires taxpayers to provide financial details similar to the CD-3 document. It helps both taxpayers and tax authorities evaluate the ability to pay and negotiate liabilities.
Form 433-B - Collection Information Statement for Businesses: Comparable to Form 433-A, this business version collects similar financial information relevant to tax liability negotiations, emphasizing the complexity of business tax settlements.
Form 9465 - Installment Agreement Request: This form requests a payment plan for taxes owed. Like the CD-3, it entails a commitment to future compliance and may accommodate lower payments depending on financial situations.
Form 1138 - Extension of Time to File Certain Business Tax Returns: Though focused on filing extensions, both forms require strict adherence to timelines and stipulations to avoid further penalties, linking to compliance obligations.
Request for Penalty Abatement: This document addresses requests to waive penalties for late payments or filings, similar in nature to the compromise process of settling tax liabilities outlined in the CD-3.
Form 941 - Employer’s QUARTERLY Federal Tax Return: Required for employers reporting withholding taxes, it operates on similar principles of disclosure and financial accountability, akin to the details expected within the CD-3.
State Taxpayer Advocate Services: This route provides taxpayers with assistance and negotiation alternatives for tax disputes and offers, much like the opportunities presented within the CD-3 process.

Dos and Don'ts

When filling out the West Virginia CD-3 form, there are important guidelines to follow to ensure a smooth process. Below are five things you should and shouldn’t do.

Do provide accurate and complete information for all required fields. This will help avoid any delays in processing your offer.
Do include a detailed financial statement (Form 433A and/or 433B) to substantiate your ability to pay. This documentation is essential for consideration.
Do clearly specify all tax liabilities you are seeking to compromise. List the type of tax, periods involved, and amounts owed without leaving anything out.
Do ensure the offer amount reflects your true ability to pay. This proposal is a crucial part of convincing the state to accept your offer.
Do sign and date the form. If someone else is signing on your behalf, be sure to include a power of attorney.

Don’t underestimate the amount you owe. Offering a minimal amount could lead to rejection of your proposal.
Don’t neglect to attach a statement explaining why the state should accept your offer. This should detail why they cannot collect more from you.
Don’t submit the form without ensuring all prior tax filings are up to date. Incomplete filings will disqualify your offer.
Don’t expect an immediate halt to collection activities when you submit your offer. It will not automatically suspend collection efforts.
Don’t forget to provide copies of any relevant documentation that could support your case, such as proof of assets or income.

By following these do's and don'ts, you can navigate the complexities of the West Virginia CD-3 form with more confidence. Adhering to these guidelines will help improve the chances of your offer being accepted and allow you to focus on managing your financial obligations effectively.

Misconceptions

Misconception: Submitting Form CD-3 automatically stops all collection actions. This is not true. The submission of an offer does not automatically suspend collection activities. If the tax authority believes that the offer is merely a delay tactic, collection efforts may continue. Taxpayers are advised to maintain payments on any existing agreements even if an offer is pending.
Misconception: All taxpayers are eligible to submit an Offer in Compromise. Not every taxpayer qualifies. Eligibility is contingent upon demonstrating either doubt about the owed amount or doubt about the collectibility of the full liability. Additionally, taxpayers must comply with all tax filing and payment requirements to be considered.
Misconception: Once approved, the Offer in Compromise means the taxpayer is no longer liable for taxes. This is misleading. A taxpayer remains liable for the total amount until the offer is formally accepted in writing by the tax commissioner. If the terms of the offer are not fully complied with, the state retains the right to collect the entire outstanding balance.
Misconception: The amount offered is the final settlement and cannot be contested. While taxpayers may not contest the amount once the offer is accepted, it is crucial to understand that the compromise reflects a mutually agreed-upon settlement. Taxpayers should ensure their offer accurately represents their financial situation to avoid future complications.

Key takeaways

Here are some important points to keep in mind when filling out and using the West Virginia Cd 3 form:

Offer Purpose: The form is used to propose a compromise for state tax liability, typically due to doubts about the amount owed or collectibility of the debt.
Documentation Requirement: Support your offer with a financial statement (Forms 433A and/or 433B) and explain the reasons for the compromise.
Initial Payment: Include an initial payment with your offer. This shows you have a genuine intention to settle the tax liability.
Future Compliance: Agree to comply with all state tax laws for five years after the offer is accepted. This includes timely filing of tax returns.
Retention of Payments: Any payments or credits already made will be retained by the state if the offer is submitted.
Acceptance Criteria: The state may reject low offers if it believes it can collect more through other means, such as asset liquidation.
Legal Disclaimer: By signing the form, you cannot contest the tax liability if the offer is accepted, and you must comply with all terms.
Submission Process: Submit the completed offer to the Compliance Division, including all necessary documentation, and keep copies for your records.

Understanding these key aspects can help in successfully navigating the offer process. Be sure to complete the form carefully and provide all required information.

Other PDF Templates

N400 - Retaining legal assistance can be beneficial for navigating the application process.

Asurion Wiki - This document is geared toward capturing essential details during service requests.

Daily Work Report Format to Boss - Provides a historical context for incidents at the security site.