Form 433 a Oic
Form 433-A OIC is known as a Collection Information Statement for Wage Earners and Self-Employed Individuals. The purpose of this document is for the taxpayer to make what is known as an offer in compromise (OIC). The taxpayer is looking to settle their tax debt with the IRS for less than what is owed. Because this form is submitted to the IRS, it is important that it is completed in a truthful manner.
What is a 433 A OIC?
This form is a different version of the Form 433-A, which is known as a Collection Information Statement for Wage Earners and Self-Employed Individuals. The change with this particular form is that it is used when a filer wants to make an Offer in Compromise. This means that when they are filing their taxes with this form, they can make an offer to settle their debt for less than the full amount owed.
This form should only be used by people who have a true financial hardship and are unable to pay. The Internal Revenue Service will look at several factors to see if a compromise is appropriate. This includes the taxpayer’s income, assets, ability to pay, and expenses. The offer will only be accepted if the filer meets certain qualifications. Be sure that you explore all your options in case your offer is denied.
To completely fill out this form, information about your household, earnings, expenses, assets, and more. You will also need to provide a suggested offer. A qualified tax professional can help you come up with an appropriate offer if you need help.
How to complete a 433 A OIC (Step by Step)
To complete a Form 433-A (OIC), you will need to provide the following information:
Section 1 - Personal and Household Information
- Last name, first name
- Date of birth
- Social security number
- Marital status
- Home physical address
- Own/rent status
- County of residence
- Phone numbers
- Mailing address
- Spouse information
- Dependent information - name, age, relationship, dependent status on Form 1040, household income contribution status
Section 2 - Employment Information for Wage Earners
- Employer’s name
- Ownership interest information
- OccupationÂ
- Length of time with employer
- Employer’s address
- Spouse’s employment information
Section 3 - Personal Asset Information
- Cash and investment information: bank name, account number, total amount
- Investment account information: name of financial institution, account number, current market value, loan balance
- Real estate information: address, primary residence status, date of purchase, county and country, date of final payment, how title is held, description of property, current market value, minus loan balance
- Vehicle information: make and model, year, date purchased, mileage, name of creditor, date of final payment, monthly lease/loan amount, current market value, minus loan balance
- Other valuable items: description, market value, loan balance
Section 4 - Self-Employed Information
- Sole proprietorship status
- Name of business
- Address of business
- Business telephone number
- Employer identification number
- Business website
- Description of business
- Total number of employees
- Frequency of tax deposits
- Average gross monthly payroll
- Trade name or DBA
- Other business interest information
Section 5 - Business Asset Information
- Description of asset
- Current market value
- Minus loan balance
- Notes receivable information
- Accounts receivable information
Section 6 - Business Income and Expense Information (for Self-Employed)
- Business income: gross receipts, gross rental income, interest income, dividends, other income
- Business expenses: materials purchased, inventory purchased, gross wages and salaries, rent, supplies, utilities/telephones, vehicle costs, business insurance, current business taxes, secured debts, other business expenses
Section 7 - Monthly Household Income and Expense Information
- Primary taxpayer: wages, social security, pension, other income
- Spouse income
- Additional sources of income used to support household
- Interest and dividendsÂ
- Distributions
- Net rental income
- Net business income
- Child support
- Alimony
- Monthly household expenses: food, clothing, miscellaneous, housing and utilities, vehicle loan and/or lease payments, vehicle operating costs, public transportation costs, health insurance premiums, out-of-pocket health care costs, court-ordered payments, child/dependent care payments
- Life insurance premiums
- Current monthly taxes
- Secured debts
- Monthly delinquent state and local tax payments
Section 8 - Calculate Minimum Offer Amount
- Remaining monthly income
- Future remaining income
- Personal assets + business assets
- Offer amount
Section 9 - Other Information
- Beneficiary of trust, estate, or life insurance policy
- Currently in bankruptcy
- Bankruptcy in the past 10 years
- Discharge/dismissal date
- Location filed
- Party to lawsuit
- Date resolved
- Party to lawsuits involving IRS/United StatesÂ
- Transferred any assets for less than full value in the past 10 years
- Transferred real property in past 3 years
- Lived outside the U.S. for 6 months or longer in the past 10 years
- Assets or real property outside U.S.
- Funds in trust by third party
Section 10 - Signatures
- Taxpayer signature
- Signature of spouse
- Date
- Attachments
