An Offer in Compromise (OIC) is an extremely important method which greatly aids in reducing taxes with the Internal Revenue Service. But to take advantage of the Offer in Compromise (OIC), the Form 433-A needs to be completed with the utmost care and precision.
Form 433-A is the main official documented doctrine of the government when making an OIC offer to the IRS. This form is used to gather overall relevant information which requires a lot of financial information and can take quite some time to prepare properly.
You have to keep in mind that the information being entered on the 433-A needs to be completely accurate. The information on the 433-A is thoroughly reviewed by the Internal Revenue Service agent who have an enormous amount of resources at their disposal to check the accuracy of the information filled in form 433–A.
An example of such information that needs to be filled would be the taxpayer’s driver license number and the state in which it was issued. After acquiring the information, the IRS then proceeds to check their database for vehicles registered under the taxpayer’s driver license number.
To make sure the provided information is valid and the vehicle is owned by the taxpayer or not, the IRS agent will further proceed to cross reference the vehicles listed on form 433–A with their own national database. In the case of any difference occurring between the database and the information on the form 443-A, the taxpayer will then have to explain the irregularity and can drain even more time.
It happens from time to time that a taxpayer has to sell his/her vehicle to a broker. The Broker might not register it with the respective authorities and still leave it under the taxpayer’s name. This results in the taxpayer having to do a lot of explaining as to why it’s still registered under his name. Since it happens from time to time, the IRS provides additional documentation that needs to be filled before you can carry on with your OIC offer.
To check if the taxpayer had run a business or incorporated any businesses in the past, the IRS agent will thoroughly investigate using the taxpayer’s social security number. In case the taxpayer ran a business or incorporated one, the required information regarding the business will have to be filled in the 443-A form. The taxpayers need to provide the specific dates that mark the start and end of the business term along with the other essential documentations to the IRS agent. This information is solely to advise the IRS of basic contact and identifying information regarding the taxpayer.
Besides the taxpayer’s basic information, many other varieties of financial information have to be filled out on the 443-A form. Thus, when making an OIC offer, trying to get it done quickly is not an option. Any missing or incorrect information without a plausible cause will result in the rejection of the taxpayers OIC offer.
When preparing an OIC offer, a taxpayer should take his time and seek help from another individual that has previous knowledge regarding the form. Contact us now and we’ll make sure that your OIC offer is completed and accepted without any errors.
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