Form 433-A (OIC) is the Collection Information Statement for Wage Earners and Self-Employed Individuals used expressly with Form 656 Offer in Compromise; it is not interchangeable with plain Form 433-A. The OIC version includes personal and household data, employment details, personal assets, applicable self-employment information, income and expense sections, and offer calculations. Asset equity and expense treatment follow the current form and booklet, not a household cash budget. A completed calculation does not establish IRS acceptance; organize evidence for professional review before submitting an offer.
Why Form 433-A (OIC) Differs From Plain 433-A
Plain Form 433-A serves collection payment plans and ability-to-pay analysis; the OIC variant includes offer-amount calculations, with instructions in the current Form 656-B booklet. The two forms share structure but apply different equity and expense rules. Treating them as identical produces incorrect offer amounts and wastes preparation time. Check the current Form 656-B booklet for instructions and application forms; do not invent multipliers, asset discounts, or minimum-offer thresholds from memory.
OIC Readiness Gate
Before assembling Form 433-A (OIC), confirm preliminary eligibility: required returns filed, required estimated payments made, not in open bankruptcy, and federal tax deposit compliance for employers. Financial need alone does not guarantee acceptance; the IRS considers income, expenses, and asset equity. Generally an offer is not accepted if the debt can be paid in full through a payment plan or liquidated equity. Document what you know and what remains open in a readiness gate.
| Gate Item | Status | Evidence | Assumption / Gap | Owner |
|---|---|---|---|---|
| All returns filed | Verified | Account transcript | — | Preparer |
| Equity in primary residence | Estimate $42k | County appraisal, loan statement | FMV $310k, loan $268k | Reviewer |
| Monthly disposable income | Unknown | Awaiting three pay stubs | — | Client |
| Employer federal deposits current | Not applicable | Wage earner | — | Preparer |
This table separates verified facts from assumptions and assigns responsibility for missing evidence. A gap in the gate triggers collection, not estimation.
Source-to-Field Evidence Reconciliation
Every asset, income, and expense entry on Form 433-A (OIC) should trace to dated source documents as recommended workpaper practice: bank statements, pay stubs, loan balances, property appraisals, and credit-card statements. Record the evidence type, period, amount, and any discrepancy. When a field asks for fair market value and outstanding loan balance, provide both from independent sources—recent appraisal or county assessment for value, lender statement for balance. Do not net equity on the face of the form unless the form instruction permits it. Keep receivables separate from cash, and loan balances separate from monthly payments.
Applicable self-employment information appears on this form. The Form 656-B booklet distinguishes individual and business offer statements; the business Form 433-B (OIC) directs sole proprietorships to Form 433-A (OIC). Plain Form 433-B is a different collection statement. Confirm current instructions and the exact taxpayer and liability before routing; do not infer entity classification from a business name or EIN alone.
Offer-Specific Expense Review
IRS collection financial standards inform offer expense allowances but do not replace the booklet rules. National food, clothing, and other items generally allow the standard monthly amount for family size without questioning actual spending; local housing and transportation generally use actual spending or the applicable standard, whichever is lower. Out-of-pocket health care uses a per-person allowance. The IRS may allow actual expenses above the standard when documentation supports that basic living expenses are inadequate, but an exception is not automatic. Verify the current standards version—effective dates matter—and cite the category, location, household size, and applicable rule in your workpapers.
Pre-Submission Checklist
Before professional sign-off:
- [ ] Confirm Form 433-A (OIC) is the current April 2026 revision or later.
- [ ] Recommended workpaper step: trace asset and income entries to dated source documents for the periods specified by the current form and booklet instructions.
- [ ] Reconcile bank-statement balances to the snapshot date; do not double-count monthly income and account balance.
- [ ] Flag any missing evidence, estimated value, or unresolved discrepancy in a review memo.
- [ ] Route the completed package and Form 656-B to the professional reviewer; do not treat the calculated offer as IRS approval.
If your firm evaluates tax resolution software, test whether the tool maps to the correct 433 variant, preserves source-document dates, and flags discrepancies before calculation. The 26T1 Income & Expense Worksheet is currently marked “Coming next” and describes planned support for collaborative collection of financial details and evidence to support professional resolution planning; confirm current availability and test relevant capabilities before relying on them for an OIC workflow.
Compare Relief Options Before Filing
An offer is one option; installment agreements and currently not collectible status may be alternatives to evaluate if an offer appears unsuitable. Prepare an options review matrix with known facts, eligibility checks, open questions, and decision ownership. Do not promise automatic acceptance, forgiveness, or the best remedy; the professional reviewer weighs evidence, eligibility, and client goals.
How does Form 433-A (OIC) differ from plain Form 433-A?
Form 433-A (OIC) is used exclusively with Form 656 Offer in Compromise and includes offer calculations; plain Form 433-A supports payment plans. Asset equity and expense rules differ between the two.
Can I complete Form 433-A (OIC) for an LLC or corporation?
Check current instructions. The form covers wage earners and self-employed individuals, including applicable self-employment information. A business offer may require Form 433-B (OIC), distinct from plain Form 433-B; the business OIC form directs sole proprietorships to Form 433-A (OIC). Confirm the exact taxpayer and liability against the current booklet.
Does a completed offer calculation guarantee IRS acceptance?
No. The calculation is part of the offer package. The IRS reviews income, expenses, asset equity, and eligibility before acceptance. Document gaps and assumptions for professional review.
Discuss your firm’s authorization, transcript and CRM workflow in a 26T1 demo.