Who needs a form DTF - 4.1?
Form DTF - 4.1 or Offer in Compromise for Fixed and Final Liability is filled by a taxpayer.
What is form DTF - 4.1 for?
Form DTF - 4.1 serves a plea on a taxpayer's behalf to pay less tax amount than initially required. This form may be a legitimate option for a taxpayer to minimize taxation if it leads to financial hardship, or if the taxpayer is unable to pay full tax amount. The reasons for submitting form DTF - 4.1 may be as follows:
- Liability in doubt
- Collectability in doubt
- Special circumstances when collectability is in doubt
- Effective tax administration
However, offer in compromise may be rejected due to the insufficient number of proof of a taxpayer's inability to pay. Thus, before submitting form DTF - 4.1 make sure you have thoroughly explored all payment options or that you've hired a true tax expert to help you file the form.
Is form DTF - 4.1 accompanied by other forms?
Form DTF - 4.1 is accompanied by the Statement of Financial Condition and Other Information that is form DTF - 5.
When is form DTF - 4.1 due?
Form DTF - 4.1 is due the end of the year.
How do I fill out form DTF - 4.1?
Form DTF - 4.1 contains 3 pages with a number of fields to be filled by the taxpayer and for the office use only. First, a taxpayer enters his/her contact information including:
- Home address
- Business address
- Tax payer`s representative and his/her address
- Employer identification number
- Type of tax and entity
Part called “Record of liabilities and payments” is also filled by a taxpayer. This sections consists of such fields and columns:
- Notice of assessment number
- Tax period
- Amount of tax
- Total payments to date
- The sum offered in compromise borrowed money if any
Page 2 contains information about facts and reasons for the offer. A taxpayer should confirm them by the signature. Page 3 includes instructions to guide a taxpayer through the filing process.
Where do I send form DTF - 4.1?
Form DTF -4.1 is sent to the New York State Department of Taxation and Finance.