Form 433 a OIC Rev 4 Internal Revenue Service

What is the Form 433 A OIC

The Form 433 A OIC, also known as the 2021 Form 433A, is an official document used by the Internal Revenue Service (IRS) for individuals seeking to settle their tax debts through an Offer in Compromise (OIC). This form allows taxpayers to provide detailed financial information, which the IRS uses to determine their ability to pay and assess whether settling for less than the full amount owed is appropriate. The form must be completed accurately to ensure the IRS can evaluate the taxpayer's financial situation effectively.

Steps to Complete the Form 433 A OIC

Completing the Form 433 A OIC requires careful attention to detail. Here are the key steps to follow:

• Gather necessary financial documents, including income statements, bank statements, and expense records.
• Fill out personal information, including name, address, and Social Security number.
• Provide details about your income, including wages, self-employment income, and any other sources.
• List your monthly expenses, ensuring to include necessary living costs like housing, utilities, and transportation.
• Detail your assets, including bank accounts, real estate, and personal property.
• Review the completed form for accuracy and completeness before submission.

Legal Use of the Form 433 A OIC

The legal use of the Form 433 A OIC is governed by IRS regulations that outline the requirements for submitting an Offer in Compromise. The form must be signed and dated by the taxpayer, affirming that the information provided is true and accurate. Failure to comply with these legal stipulations may result in the rejection of the offer or potential penalties. It is essential to understand that submitting this form does not guarantee acceptance of the OIC; the IRS will conduct a thorough review based on the provided financial information.

Eligibility Criteria for the Form 433 A OIC

To qualify for submitting the Form 433 A OIC, taxpayers must meet specific eligibility criteria set by the IRS. These include:

• The taxpayer must have filed all required tax returns.
• The taxpayer must not be in an open bankruptcy proceeding.
• The taxpayer's total tax liability must be eligible for an OIC.
• The taxpayer must demonstrate an inability to pay the full tax liability.

Required Documents for Form 433 A OIC

When submitting the Form 433 A OIC, taxpayers must include supporting documentation to validate their financial claims. Required documents typically include:

• Recent pay stubs or proof of income.
• Bank statements for the last three months.
• Documentation of monthly expenses, such as bills and receipts.
• Proof of assets, including property deeds and vehicle titles.

Form Submission Methods

The Form 433 A OIC can be submitted to the IRS through various methods. Taxpayers have the option to:

• Submit the form electronically through the IRS e-File system, if eligible.
• Mail the completed form to the appropriate IRS address based on their location and the type of tax owed.
• Hand-deliver the form to a local IRS office, if preferred.