Don't Risk Rejection: Get Expert OIC Guidance.
The IRS heavily scrutinizes the financial data on Form 433-A/B. Let our specialists ensure your RCP is calculated accurately to maximize your chances of acceptance.
The OIC process requires careful documentation and submission. Understanding these steps can help you manage your expectations and ensure a successful application:
- Compliance and Pre-Qualification: Before submitting, you must be current on all required tax filings and estimated payments. We recommend using the IRS Pre-Qualifier Tool to estimate your potential offer amount and confirm eligibility.
- Financial Disclosure (Forms 433-A/B): You must accurately complete the appropriate financial statement (433-A OIC for individuals or 433-B OIC for businesses). This details your income, current expenses (using National Standards), and assets.
- Offer Calculation: You determine your proposed offer amount (on Form 656) based on the Reasonable Collection Potential (RCP) formula: Net Equity in Assets plus a multiplier of Future Disposable Income.
- Submission and Fees: Mail your complete application, which must include Form 656, Form 433-A or 433-B, a $205 application fee (for most offers), and the required initial payment based on whether you choose the lump-sum or periodic payment option.
- IRS Review and Determination: The IRS will assign a representative to investigate and verify all information in your application. They will compare your offer to the calculated RCP and send a formal acceptance or rejection letter.
