How to Complete Form 433-A (OIC)
Oct 23, 2024
This video provides step-by-step instructions on how to complete the forms needed to submit an Offer in Compromise. The instructions in this video are up-to-date but your form may look different from the images shown. Visit IRS.gov/OIC for the current form and more information.
Section 9 - Other Information Including Yes & No Questions Everyone Should Answer
Then you're going to move on to Section 9, which is Other Information. These are just some basic
Yes or No questions that you're going to want to go through and answer. One thing to note
in this section, is Transfer of Assets for Less Than Full Value. In the past 10 years,
have you transferred any assets with a fair market value of more than $10,000,
including real property? Some taxpayers mistakenly place their primary residence here,
as it was sold for less than the purchase price, due to a decrease in market value. Many taxpayers
sell their assets for amounts lower than what they're worth, to family members or others,
to keep them out of the Offer Calculations, or out of the IRS's reach. Depending on the facts,
the IRS may consider this as concealing assets, which may lead for individuals
to fines of up to $100,000 and imprisonment of up to 3 years. With its records and ability to
research past business transactions, the IRS can find out about these types of transactions. IRS
may treat this as if you still have the value in the asset when vetting your offer amount.