Form 433-A (OIC)

What Is IRS Form 433-A OIC?

IRS 433-A OIC (Offer in Compromise) form is a document used by taxpayers in the United States who want to propose an offer in compromise to the Internal Revenue Service (IRS). An offer in compromise is a settlement offer made by a taxpayer to the IRS to resolve their outstanding tax debt for less than the full amount they owe. 

Why is IRS 433-A OIC form important?

IRS Form 433-A OIC is important because of some reasons. Here are some of them:

• Provides a pathway for taxpayers: It allows taxpayers with outstanding tax debts to propose an offer in compromise, potentially resolving their debt for less than what they owe.
• Supplies financial information: The form gives the IRS the necessary details about a taxpayer's financial situation, including income, expenses, assets, and liabilities.
• Assists in determining eligibility: The IRS uses the information provided on the form to evaluate if a taxpayer qualifies for an offer in compromise and to ascertain an acceptable offer amount.
• Enables customized payment agreements: Based on the submitted financial data, the IRS can develop a tailored payment plan that suits the taxpayer's individual circumstances and ability to pay.
• Streamlines the evaluation process: This IRS form standardizes the documentation required for taxpayers seeking an offer in compromise, making it easier for the IRS to review and process these requests.
• Offers a fresh start: Successfully negotiating an offer in compromise can help taxpayers clear their tax debt, avoid further penalties, and regain good financial standing with the IRS.

How to Fill Out Form 433-A OIC

Filling out the 433-A (OIC) form template on PDFliner involves the following specific steps:

1. In section 1, enter your name, social security number, date of birth, phone number, physical address, and other personal details. Fill out the information for your spouse or co-applicant if applicable. 
2. Include the names, relationships, ages, and social security numbers of dependents who live with you. 
3. In section 2, list your employer's name, address, phone number, position/title, and hire date. Do this for your spouse as well, if applicable.
4. In section 3, list all bank accounts, including checking, savings, and retirement accounts. Include account numbers, current balances, and financial institution names and addresses.
5. Add information about your investments, such as stocks, bonds, and mutual funds, including shares, current value, and company or fund names.
6. Provide details about your credit cards and lines of credit, such as account numbers, credit limits, and outstanding balances.
7. List your real estate holdings, including property descriptions, market values, mortgages, and equity.
8. Detail your personal vehicles, including make, model, year, mileage, market value, and loan balances.
9. Provide information about other personal assets, like life insurance policies, jewelry, artwork, and collectibles, including their value and identifying information.
10. In section 4, fill in your business name, address, taxpayer identification number, start date, type of business, and ownership percentage if you are self-employed. 
11. In section 5, list your business bank accounts, credit cards, real estate, business vehicles, machinery, equipment, inventory, accounts receivable, and any other business assets.
12. Enter financial details, such as current balances, market values, and outstanding debts.
13. In section 6, list your business's gross receipts, total cost of goods sold, gross profit, and business expenses.
14. In section 7, enter your monthly household income from all sources, such as wages, self-employment, rental income, and other sources. 
15. Detail your monthly household expenses, including housing, utilities, transportation, food, clothing, medical expenses, and other costs.
16. In section 8, enter your gross monthly income, allowable living expenses, and disposable income.
17. Multiply your disposable income by the number of months in the offer repayment period, and add any net realizable equity in assets.
18. In section 9, provide any additional information relevant to your financial situation that may help the IRS understand your circumstances and evaluate your offer.
19. Before submitting the form to the IRS, review it thoroughly for any errors or missing information. Making mistakes or omitting details could result in a longer processing time or denial of your application.

Also, remember to ensure that all necessary supporting documentation is included with the form, such as proof of income, bank statements, and documents to verify your financial liabilities (e.g., loan statements, court orders for child support, etc.) before sending the filled out form 433-A OIC to IRS.

Tips for completing form 433-A (OIC)

Before submitting your form 433-A (OIC), keep the following pointers in mind:

• Always answer truthfully and completely to avoid delays or rejection of your OIC application.
• Double-check your calculations and ensure all fields are filled in accurately.
• Gather supporting documents for your income, assets, and expenses, as the IRS may request them later in the process.
• Consult a tax professional for assistance in completing the form if needed. They can help you understand the requirements, provide guidance, and maximize your chances of a successful OIC application.