Form 433-A. You must submit Form 433-A, “Collection Information Statement for Wage Earners and Self-employed Individuals,” to document your financial situation when you ask for an offer in compromise. The IRS uses this form to determine your “reasonable collection potential” on your tax debts. Form 433-A is an eight-page form.

What is form 433-A for offer in compromise?

If you’re applying for an offer in compromise, which is a settlement with the IRS to pay less than the total amount owed, then you’ll be asked to fill out this form. Form 433-A is called Collection Information Statement for Wage Earners and Self-Employed Individuals.

Can a offer in compromise be returned by the IRS?

The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications. The IRS will return any newly filed Offer in Compromise (OIC) application if you have not filed all required tax returns and have not made any required estimated payments.

How to appeal a rejection of an offer in compromise?

If your offer is rejected You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise, Form 13711 (PDF). The online self-help tool may provide additional assistance on appealing your rejected offer.

Key Takeaways 1 An Offer in Compromise is a proposal to pay the IRS less than the full amount of your total tax debt. 2 You can commit to paying a lesser amount in one lump sum, or you can make periodic payments over time. 3 The IRS approves Offers in Compromise about 40% of the time.

Can you settle your taxes with an offer in compromise?

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances: Ability to pay;

How often does the IRS approve an offer in compromise?

The IRS approves Offers in Compromise about 40% of the time. The IRS will keep any tax refunds you were due during the year in which you make your offer or earlier.

How does an offer in compromise affect your RCP?

You extend your statute of limitations to collections while an Offer in Compromise is pending and could affect your RCP; You will have to pay a down payment to the IRS when you submit your Offer in Compromise, and the IRS gets to keep your down payment if they reject it;