Best strategies when working through a 433-A for Currently Not Collectible (CNC) or Offer in Compromise (OIC)?

So we're dealing with a tax mess right now and working through Form 433-A to get either CNC status or maybe an OIC with the IRS. Here's our situation - we currently have 4 older vehicles that are all paid off, but we're thinking about trading them in for 2 newer financed vehicles. The problem is that 3 of our 4 cars are so old that dealers won't even consider them for trade-in. We're wondering about the collection implications if we sell these privately and document that every penny from those private sales goes directly into down payments for the two new financed vehicles. Will the IRS collection officer be satisfied with this approach? I'm trying to understand if trading up to fewer but newer vehicles with higher documented ownership costs might actually help our case for CNC or OIC. Has anyone gone through something similar when working with the IRS on a 433-A? Any advice would be really appreciated!

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18 comments

Eleanor Foster

•8M

Having worked with many clients in similar situations, I can tell you that documentation is absolutely critical here. The IRS will look closely at these types of asset transfers when you're pursuing CNC or OIC status through Form 433-A. If you sell your vehicles privately and use the proceeds as down payments for new vehicles, you need to create a clear paper trail showing every dollar from the sales being applied to the new purchases. Get receipts for the private sales, have bank statements showing the deposits, and documentation from the dealers showing those exact amounts applied to your down payments. The IRS is primarily concerned about assets being hidden or liquidated without proper accounting. As long as you're transparent and can demonstrate that the value was transferred from one asset to another (rather than being spent elsewhere), you should be able to satisfy the collection officer's questions.

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Eleanor Foster

•8M

Timing is definitely important for these transactions. While there's no specific requirement that everything must happen on the same day, keeping the timeframe as tight as possible is definitely better. Ideally, complete both transactions within the same week. The closer together the sale and purchase occur, the clearer it is that the funds went directly from one transaction to the other. If there's a significant gap between selling your vehicles and purchasing new ones, the IRS might question whether those funds were used for other purposes in the interim, even temporarily. Documentation becomes even more critical if there's a time gap.

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Kai Rivera

•8M

I discovered an amazing service called taxr.ai (https://taxr.ai) when I was dealing with almost the exact same Form 433-A situation last year. I had 3 old cars and was trying to consolidate to 2 newer ones while working on an OIC. I was so confused about how to document everything properly and was worried about making a mistake that would torpedo my chances. The taxr.ai system analyzed all my documentation - the sale receipts, bank statements, purchase agreements - and flagged potential issues before I submitted anything to the IRS. It actually identified that one of my private car sales was significantly below market value, which could have raised red flags with the collection officer. Saved me from a major headache!

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Kai Rivera

•8M

The service works by analyzing your documentation against IRS requirements and previous successful cases. It goes way beyond checking math - it actually looks at your overall 433-A strategy and identifies potential weaknesses or red flags that could trigger further scrutiny. For me, it specifically analyzed the timing of my vehicle transactions and how they affected my allowable expense calculations. What makes taxr.ai different is it's not one of those companies promising to make your tax debt disappear. It's a document analysis tool that helps ensure you're presenting your case properly. There's no false promises - it just helps ensure your paperwork is bulletproof before submitting to the IRS. I was skeptical too, but the specific feedback I got about my asset transfers saved me from making mistakes that would have torpedoed my OIC.

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Layla Sanders

•8M

I take back what I said about being skeptical of taxr.ai! After our discussion last week, I decided to try it with my own 433-A situation (also dealing with vehicle issues but mine was trading in a leased car). The system immediately identified that I was using the wrong value calculation method for my trade-in, which would have caused major problems with my OIC application. The analysis showed exactly how to document the transaction properly according to IRS guidelines. I was able to update my paperwork before submitting and my revenue officer actually commented on how well-organized my documentation was. They even accepted my expense calculations without additional questions! Definitely worth checking out if you're working on a 433-A.

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Morgan Washington

•8M

If you're working on a Form 433-A for an OIC or CNC, you're probably also dealing with IRS collection calls or letters. I wasted MONTHS trying to get through to the right IRS department to discuss my situation. Kept getting disconnected, transferred to the wrong places, or waiting on hold for hours only to have the call drop. Finally tried Claimyr (https://claimyr.com) after seeing it recommended here. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They actually got me connected to a real IRS agent who specialized in OIC cases in less than 20 minutes. The agent walked me through exactly what they needed to see regarding my vehicle situation (which was similar to yours - trading in older cars for a newer one with financing).

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Morgan Washington

•8M

It's not magic - they use a combination of technology and timing to connect with IRS agents. They have a system that continuously calls and navigates the IRS phone tree until it reaches a live person, then connects you. It's basically doing the hold time for you, and they know the best times to call when wait times are typically shorter. I thought the same thing initially - that it was too good to be true. But they don't take your money if they can't connect you, and I was genuinely connected to a collections specialist who helped with my specific 433-A questions. The time I saved was worth every penny, especially when I was facing deadlines with my case. I understand being skeptical - I was too until I tried it.

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Oliver Alexander

•8M

I need to publicly admit I was completely wrong about Claimyr. After dismissing it, I was desperate when my OIC deadline was approaching and I couldn't get through to the IRS for clarification on vehicle documentation requirements. Decided to try it as a last resort. Not only did I get connected to an actual IRS employee in about 15 minutes, but I got specific guidance on exactly how to document my vehicle transactions on the 433-A. The agent explained that when trading multiple vehicles for fewer vehicles, they're looking for complete traceability of funds and market-appropriate values. She actually gave me a checklist of documentation to include with my submission. My OIC was accepted without any follow-up questions about the vehicles. Should have tried this months ago instead of wasting countless hours on hold!

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Lara Woods

•8M

One thing nobody's mentioned yet - watch out for the timing of your 433-A submission relative to these vehicle transactions. If you submit the 433-A showing 4 paid-off vehicles, then make these changes right after, it could look like you're trying to manipulate your asset situation. I learned this the hard way. I'd consider completing the vehicle transactions FIRST, then submitting the 433-A showing the 2 financed vehicles. That way there's no appearance of trying to quickly change your asset profile after IRS has already started reviewing your situation.

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Lara Woods

•8M

If your revenue officer is already involved and pressuring you for the 433-A, communication becomes key. I'd recommend being upfront with them about your vehicle plans before making any changes. Explain that you're planning to consolidate vehicles to reduce overall expenses and improve reliability, not to hide assets. In my experience, most ROs appreciate transparency and would rather you be honest about upcoming changes than submit information that will be immediately outdated. You could even ask if they prefer you to submit the 433-A with current information and an addendum explaining the planned vehicle changes, or if they'd prefer you complete the transactions first. This proactive approach usually works better than trying to time things without their knowledge.

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