How to Complete Form 433-B (OIC)
Oct 24, 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.
Other Information Everyone Should View This Segment
Section 6 is titled Other Information. This section asks questions about the legal history of
the business. The questions are self-explanatory, also this is where the form tells you that if the
business is in bankruptcy, that you can't file an offer. Remember, we mentioned this
at the beginning of the video so you wouldn't get all the way to this section and realize
that simple barrier. One thing to note in this section is Transfer of Assets for Less
Than Full Value in the past 10 years, or for Real Estate in the past 3 years. 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 upon the facts,
the IRS may treat this as concealing assets, which may lead individuals to pay fines up
to $100,000 and imprisonment of up to 3 years under IRC 72065. With its records and ability
to research past business transactions, the IRS finds out about these types of transactions. The
IRS may treat this as if you still have the value in the asset, when vetting your offer amount.