Offer in Compromise (OIC) Disagreed Items


As you prepare your request for appeal, compile a list of specific items that you don't agree with and explain why you disagree with each item. Consider using Form 13711 PDF in the preparation of your appeal. As you gather the documentation to include in your appeal, you may find a review of the following beneficial:

Check your figures and calculations and verify the documents you submitted to Collection. If you don't have your completed Form 433-A (OIC) available, refer to a blank Form 433-A (OIC).

  • The Monthly Income/Expense Statement (see Section 7, Page 6) requires you to provide the following:
    • Proof (i.e., pay stubs and earnings statements) of gross earnings and deductions from each of your employers;
    • Proof of pension, social security and/or other income;
    • Current statement(s) from the lender on your vehicle(s), including the monthly payment and balance due for each vehicle;
    • Current statement(s) from all lien holders on your residence, including the amount of the monthly payment and balance due for each lien;
    • Proof of current expenses including utilities, rent, insurance, property tax, non-business transportation expense (i.e., car payments, lease payments, fuel, oil, insurance, registration, parking), healthcare (including insurance premiums co-payments, other out-of-pocket expenses) and court-ordered payments.

Note: The amounts used on the "Monthly Income/Expense Statement" of Form 433-A (OIC) could be different than the amounts used on the IET for food, clothing, miscellaneous, transportation, housing and utilities, out-of-pocket healthcare and other expenses. Collection Financial Standards are used to help determine a taxpayer's ability to pay a tax debt. All standards, except miscellaneous, are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (CES). These financial standards are explained below:

Did you compute the amounts in accordance with instructions? Review the instructions in the following sections on Form 433-A (OIC):

  • Section 3, Items 1-4: Cash and Investments (domestic and foreign)
  • Section 3, Items 5-7: Real Property, Vehicles, Other Valuable Assets
  • Section 4: Self-Employed

Note: Certain assets such as vehicles, and real estate should be valued at the quick sale value. This is the amount you can sell the asset today. You may compute the value of a vehicle by consulting a trade association guide for the fair market value (FMV) and discounting the value by 20%. You may compute the value of real estate by an appraisal, the replacement cost value on your residence and possibly the taxable value of your home.

Did you provide the required attachments? See the bottom of page 8 of Form 433-A (OIC): "Remember to include all applicable attachments listed below."