Offer in Compromise and Form 433A
Filing an Offer in Compromise (OIC) is an excellent method to reduce your delinquent taxes with the Internal Revenue Service.
However the most important part of the OIC process is IRS Form 433-A and it is very important that this form is carefully prepared and completed.
When making an OIC offer to the IRS, the main information gathering form that is used by the government is form 433A.
This form requires a lot of financial information and is very time consuming to prepare in a timely manner.
The Internal Revenue Service agent who reviews the OIC offer will have a large amount of resources available to them to check the accuracy of the information disclosed on form 433A.
For example, on this form the taxpayer must disclose their driver license number and the state of issue.
The IRS then utilizes a database to research all the vehicles that had been registered to the taxpayer under that specific driver license number.
The agent will then cross reference the vehicles listed on form 433A by the taxpayer against the results of the agent's database search.
In the event there is a discrepancy, then the taxpayer will have some explaining to do.
Sometimes a taxpayer may sell his vehicle to a dealer who does not register the title.
So when the IRS performs their research it appears that the taxpayer still owns the vehicle.
In this case additional documentation would have to be provided to the IRS.
The IRS agent will also research the taxpayer's social security number to determine whether the taxpayer has opened any business or incorporated any businesses in the past.
If a taxpayer had incorporated a business but never conducted any business or the business closed up, then the taxpayer must disclose this on form 433A.
The taxpayer will have to provide specific dates as to when the business closed along with other documentation to the IRS.
There is a variety of other financial information that must be disclosed on Form 433A when making an OIC to the IRS.
If the taxpayer wants to be successful in their offer, then they just cannot rush through and complete the form in a hurry.
If the agent reviewing the OIC finds that information is missing or worse that the information is inaccurate, then they will reject the offer.
Preparing the documents for a successful OIC is very time consuming and technical in nature and if a person wants to be successful, they should seek the assistance of an experience professional.
However the most important part of the OIC process is IRS Form 433-A and it is very important that this form is carefully prepared and completed.
When making an OIC offer to the IRS, the main information gathering form that is used by the government is form 433A.
This form requires a lot of financial information and is very time consuming to prepare in a timely manner.
The Internal Revenue Service agent who reviews the OIC offer will have a large amount of resources available to them to check the accuracy of the information disclosed on form 433A.
For example, on this form the taxpayer must disclose their driver license number and the state of issue.
The IRS then utilizes a database to research all the vehicles that had been registered to the taxpayer under that specific driver license number.
The agent will then cross reference the vehicles listed on form 433A by the taxpayer against the results of the agent's database search.
In the event there is a discrepancy, then the taxpayer will have some explaining to do.
Sometimes a taxpayer may sell his vehicle to a dealer who does not register the title.
So when the IRS performs their research it appears that the taxpayer still owns the vehicle.
In this case additional documentation would have to be provided to the IRS.
The IRS agent will also research the taxpayer's social security number to determine whether the taxpayer has opened any business or incorporated any businesses in the past.
If a taxpayer had incorporated a business but never conducted any business or the business closed up, then the taxpayer must disclose this on form 433A.
The taxpayer will have to provide specific dates as to when the business closed along with other documentation to the IRS.
There is a variety of other financial information that must be disclosed on Form 433A when making an OIC to the IRS.
If the taxpayer wants to be successful in their offer, then they just cannot rush through and complete the form in a hurry.
If the agent reviewing the OIC finds that information is missing or worse that the information is inaccurate, then they will reject the offer.
Preparing the documents for a successful OIC is very time consuming and technical in nature and if a person wants to be successful, they should seek the assistance of an experience professional.
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