dependent and credit-card payments (disallowed since they represent unsecured debt). The number of months over which disposable income must be calculated into the offer amount is based on the smaller of the number of months remaining until the collection statute expiration date for the tax debt or either 6 or 24 months, depending on the payment option for the OIC that the applicant is selecting. Net realizable equity in assets is the quick-sale value of the asset (often 80% of fair market value) minus any liabilities secured by the asset (e.g., a loan). As an example, if a taxpayer has a home worth $100,000 and owes $50,000 on the home, the IRS will calculate the net realizable equity in the asset as: ($100,000 x .80) - $50,000 = $30,000. The IRS expects, in this example, that the $30,000 will be included in the offer amount. If a taxpayer believes he or she qualifies, the taxpayer completes a financial statement on a form provided by the IRS. Wage earners and self-employed individuals use Form 433-A. Form 433-B is for offers involving all other business types. These financial statements identify all assets and liabilities, as well as disposable income. Effective tax administration Effective tax administration offers may apply where the taxpayer is ineligible for an offer in compromise based on either a theory of DATL or DATC. The taxpayer must establish that collecting on the tax liability would cause economic hardship, or in the alternative, "where compelling public policy or equity considerations identified by the taxpayer provide a sufficient basis for accepting less than full payment." Eligible liabilities An OIC can be submitted to settle any federal tax liability incurred under the Internal Revenue Code. This includes both business taxes (payroll, income, etc.) and individual taxes (income, trust fund recovery penalties, etc.). It can only settle taxes that have already been assessed. In the United States, income tax is considered assessed on the date the return is due, or if the return is filed after the due date, on the day the return is received. For income taxes in the United States, the due date is usually April 15. If a tax liability has not yet been assessed, it cannot be included in an OIC. Certain taxes, however, are due throughout the year, so are eligible for inclusion. Partial payment Effective April 15, 2020, the IRS made changes to the OIC program