When preparing an Offer in Compromise (OIC) to send to the IRS, you want to be careful to increase the chances it’s accepted. Filling out Form 433-A and all the other paperwork properly is crucial—but it’s even more important not to lie about your assets or misrepresent your situation. If you’re caught lying about an OIC, you could be charged with a criminal offense.
Lying on an OIC Is Perjury
The point of an OIC is to seek financial help from the IRS when you’re seriously struggling. The IRS would rather get something from you than nothing, so the OIC option is available to make repaying your debts more realistic for you.
The last thing you want to do when you’re in a bad financial situation is to lie to the IRS about your assets. You might think that underreporting on Form 433-A is an easy way to avoid paying too much, but you’ll probably get caught.
Since you have to sign Form 433-A to swear that the information you provided is accurate, you could be charged with perjury if the IRS founds out you intentionally misrepresented your assets. Perjury could lead to a felony criminal conviction.
Is Making a Mistake on the OIC Perjury?
A small clerical error or miscalculation on Form 433-A or Form 656 isn’t perjury. These errors are almost always unintentional; you aren’t trying to deceive the IRS. If you do submit forms with errors or missing information, the IRS won’t charge you with perjury. Your application may be rejected or returned to you, however.
The best way to avoid making mistakes on your OIC or to misrepresent your assets is to work with a tax professional. At Highland Tax Group, we can help you complete all the required paperwork properly and advise you on making an offer the IRS is more likely to accept. We can help ensure you do the process legally.