With limited exceptions, addressed below, an OIC requires submission of
Form 433-A in addition to Form 656.
In the letter, the SO informed Szekely that, if he wished her to consider an offer-in-compromise (01C) or other collection alternative, he should submit, before the scheduled CDP hearing, a completed
Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, together with supporting documentation and three months of bank statements.
Individual or self-employed taxpayers must submit
Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals.
When the basis for making the compromise offer is doubt as to collectibility, the taxpayer must also complete a financial statement,
Form 433-A, "Collection Information Statement for Individuals," or Form 433-B, "Collection Information Statement for Businesses," in addition to Form 656.
A taxpayer submits an offer on form 656, which must be accompanied by
Form 433-A, Collection Information Statement, if the basis for compromise is collectibility.
Individual taxpayers must complete
Form 433-A, Collection In for-mation Statement for Wage Earners and Self-Employed Individuals, and, if the taxpayer owns a business with employees, Form 433-B, Collection Information Statement for Businesses.
The vendor recommends completing the forms in the following order:
Form 433-A, Form 433-B (if applicable), and Form 656.
The IRS does not recommend attaching a
Form 433-A, Individual Collection Statement, or Form 433-B, Business Collection Statement, to a tax return.
An offer is properly submitted if the taxpayer provides all significant information requested on form 656, including a complete financial reporting form (
form 433-A or 433-B).
Individual or self-employed taxpayers must submit
Form 433-A. Collection Information Statement for Wage Earners and Self-Employed Individuals, with any required attachments or other documentation.
The taxpayer must submit an offer on form 656 and provide financial information on
form 433-A (individuals) or form 433-B (businesses) if the compromise basis is collectibility.
IRS Publication 1854,"How to Prepare a Collection Information Statement (
Form 433-A)" and IRM 5.8, "Offer in Compromise," provide guidance for properly completing these forms.