IRS 433-F Template

IRS 433-F Template

The IRS 433-F form is a financial statement used by individuals to provide the IRS with information about their income, assets, and expenses. Completing this form is an important step in negotiating payment arrangements or settling tax debts. Ready to take control of your tax situation? Fill out the form by clicking the button below.

Content Overview

The IRS 433-F form is an important tool for taxpayers dealing with financial hardship or seeking relief from tax liabilities. Designed for individuals and businesses, this form serves as a financial statement that provides the Internal Revenue Service with a comprehensive view of your income, expenses, and assets. It enables the IRS to evaluate your ability to pay taxes owed or to determine eligibility for payment plans. Completing this form requires careful consideration of your financial situation, including details such as monthly income, living expenses, and any outstanding debts. Additionally, the 433-F is not just a simple questionnaire; it plays a critical role in negotiations with the IRS, particularly if you are attempting to settle your tax debt for less than you owe or establish an installment agreement. By accurately filling out this form, you can improve your communication with the IRS and potentially ease the financial burden on your shoulders.

IRS 433-F Sample

Form 433-F

(February 2019)

Department of the Treasury - Internal Revenue Service

Collection Information Statement

Name(s) and Address

Your Social Security Number or Individual Taxpayer Identification Number

 

 

 

 

 

 

Your Spouse’s Social Security Number or Individual Taxpayer Identification Number

 

 

 

 

 

 

If address provided above is different than last return filed,

Your telephone numbers

 

Spouse’s telephone numbers

please check here

Home:

 

Home:

 

 

 

County of Residence

Work:

 

 

Work:

 

 

 

 

 

Cell:

 

 

Cell:

 

 

 

 

Enter the number of people in the household who can be claimed on this year’s tax return including you and your spouse. Under 65

 

65 and Over

 

 

 

 

 

 

 

 

 

If you or your spouse are self employed or have self employment income, provide the following information:

Name of Business

Business EIN

Type of Business

Number of Employees (not counting owner)

A. ACCOUNTS / LINES OF CREDIT

PERSONAL BANK ACCOUNTS Include checking, online, mobile (e.g., PayPal), savings accounts, money market accounts. (Use additional sheets if necessary.)

Name and Address of Institution

Account Number

Type of Account

Current

Balance/Value

Check if

Business Account

INVESTMENTS Include Certificates of Deposit, Trusts, Individual Retirement Accounts (IRAs), Keogh Plans, Simplified Employee Pensions, 401(k) Plans, Profit Sharing Plans, Mutual Funds, Stocks, Bonds, Commodities (Silver, Gold, etc.), and other investments. If applicable, include business accounts. (Use additional sheets if necessary.)

Name and Address of Institution

Account Number

Type of Account

Current

Balance/Value

Check if

Business Account

VIRTUAL CURRENCY (CRYPTOCURRENCY) List all virtual currency you own or in which you have a financial interest (e.g., Bitcoin, Ethereum, Litecoin, Ripple, etc.). (Use additional sheets if necessary.)

Type of Virtual Currency

Name of Virtual Currency Wallet,

Exchange or Digital Currency

Exchange (DCE)

Email Address Used to Set-up

With the Virtual Currency

Exchange or DCE

Location(s) of Virtual Currency (Mobile Wallet, Online, and/or External Hardware storage)

Virtual Currency

Amount and Value in US dollars as of today (e.g., 10 Bitcoins $64,600 USD)

B. REAL ESTATE Include home, vacation property, timeshares, vacant land and other real estate. (Use additional sheets if necessary.)

Description/Location/County

Monthly Payment(s)

Financing

Current Value

Balance Owed

Equity

 

 

 

 

 

 

 

 

 

 

 

Year Purchased

Purchase Price

 

 

 

 

 

 

 

 

 

 

 

Primary Residence

Other

 

Year Refinanced

Refinance Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Purchased

Purchase Price

 

 

 

 

 

 

 

 

 

 

 

Primary Residence

Other

 

Year Refinanced

Refinance Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C. OTHER ASSETS Include cars, boats, recreational vehicles, whole life policies, etc. Include make, model and year of vehicles and name of Life Insurance company in Description. If applicable, include business assets such as tools, equipment, inventory, etc. (Use additional sheets if necessary.)

Description

Monthly Payment Year Purchased Final Payment (mo/yr) Current Value

Balance Owed

Equity

/

/

D. CREDIT CARDS (Visa, MasterCard, American Express, Department Stores, etc.)

Type

Credit Limit

Balance Owed

Minimum Monthly Payment

TURN PAGE TO CONTINUE

Catalog Number 62053J

www.irs.gov

Form 433-F (Rev. 2-2019)

Page 2 of 4

E. BUSINESS INFORMATION Complete E1 for Accounts Receivable owed to you or your business. (Use additional sheets if necessary.) Complete E2 if you or your business accepts credit card payments. Include virtual currency wallet, exchange or digital currency exchange.

E1. Accounts Receivable owed to you or your business

Name

Address

Amount Owed

 

 

 

 

 

 

 

 

 

List total amount owed from additional sheets

Total amount of accounts receivable available to pay to IRS now

E2. Name of individual or business on account

Credit Card

(Visa, Master Card, etc.)

Issuing Bank Name and Address

Merchant Account Number

F. EMPLOYMENT INFORMATION If you have more than one employer, include the information on another sheet of paper. (If attaching a copy of current pay stub, you do not need to complete this section.)

Your current Employer (name and address)

How often are you paid (check one)

 

 

 

 

 

Weekly

Biweekly

Semi-monthly

Monthly

Gross per pay period

 

 

 

 

 

 

 

 

 

Taxes per pay period (Fed)

 

(State)

(Local)

How long at current employer

 

 

 

 

 

 

 

 

 

 

 

 

 

Spouse’s current Employer (name and address)

How often are you paid (check one)

Weekly

Biweekly

 

Semi-monthly

Monthly

Gross per pay period

 

 

 

 

 

 

 

 

 

Taxes per pay period (Fed)

 

 

(State)

(Local)

How long at current employer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G. NON-WAGE HOUSEHOLD INCOME List monthly amounts. For Self-Employment and Rental Income, list the monthly amount received after expenses or taxes and attach a copy of your current year profit and loss statement.

Alimony Income

Child Support Income

Net Self Employment Income

Net Rental Income

Unemployment Income

Pension Income

Interest/Dividends Income

Social Security Income

Other:

H. MONTHLY NECESSARY LIVING EXPENSES List monthly amounts. (For expenses paid other than monthly, see instructions.)

1. Food / Personal Care See instructions. If you do not spend more than

4. Medical

Actual Monthly

IRS Allowed

the standard allowable amount for your family size, fill in the Total amount

Health Insurance

Expenses

 

only.

 

 

 

 

Actual Monthly

IRS Allowed

 

 

 

Out of Pocket Health Care

 

 

 

Expenses

 

 

Food

 

 

Expenses

 

 

 

 

 

 

 

 

Total

 

 

Housekeeping Supplies

 

 

 

 

Clothing and Clothing Services

 

 

5. Other

Actual Monthly

IRS Allowed

Personal Care Products & Services

 

 

 

Expenses

 

 

 

 

Miscellaneous

 

 

Child / Dependent Care

 

 

Total

 

 

Estimated Tax Payments

 

 

2. Transportation

Actual Monthly

IRS Allowed

Term Life Insurance

 

 

 

Expenses

Retirement (Employer Required)

 

 

 

 

 

 

Gas / Insurance / Licenses /

 

 

Retirement (Voluntary)

 

 

Parking / Maintenance etc.

 

 

Union Dues

 

 

Public Transportation

 

 

Delinquent State & Local Taxes

 

 

Total

 

 

(minimum payment)

 

 

3. Housing & Utilities

Actual Monthly

IRS Allowed

Student Loans (minimum

 

 

 

Expenses

payment)

 

 

 

 

 

 

Rent

 

 

Court Ordered Child Support

 

 

Electric, Oil/Gas, Water/Trash

 

 

Court Ordered Alimony

 

 

Telephone/Cell/Cable/Internet

 

 

Other Court Ordered Payments

 

 

Real Estate Taxes and Insurance

 

 

Other (specify)

 

 

(if not included in B above)

 

 

Other (specify)

 

 

Maintenance and Repairs

 

 

Other (specify)

 

 

Total

 

 

Total

 

 

Under penalty of perjury, I declare to the best of my knowledge and belief this statement of assets, liabilities and other information is true, correct and complete.

Your signature

Spouse’s signature

Date

Catalog Number 62053J

www.irs.gov

Form 433-F (Rev. 2-2019)

Page 3 of 4

Instructions for Form 433-F, Collection Information Statement

What is the purpose of Form 433F?

Form 433-F is used to obtain current financial information necessary for determining how a wage earner or self-employed individual can satisfy an outstanding tax liability.

Note: You may be able to establish an Online Payment Agreement on the IRS web site. To apply online, go to https://www.irs.gov, click on “I need to pay my taxes,” and select “Installment Agreement” under the heading “What if I can't pay now?”

If you are requesting an Installment Agreement, you should submit Form 9465, Installment Agreement Request, along with Form 433-F. (A large down payment may streamline the installment agreement process, pay your balance faster and reduce the amount of penalties and interest.

Please retain a copy of your completed form and supporting documentation. After we review your completed form, we may contact you for additional information. For example, we may ask you to send supporting documentation of your current income or substantiation of your stated expenditures.

If any section on this form is too small for the information you need to supply, please use a separate sheet.

Section A – Accounts / Lines of Credit

List all accounts, even if they currently have no balance. However, do not enter bank loans in this section. Include business accounts, if applicable. If you are entering information for a stock or bond, etc. and a question does not apply, enter N/A.

Section B – Real Estate

List all real estate you own or are purchasing including your home. Include insurance and taxes if they are included in your monthly payment. The county/description is needed if different than the address and county you listed above. To determine equity, subtract the amount owed for each piece of real estate from its current market value.

Section C – Other Assets

List all cars, boats and recreational vehicles with their make, model and year. If a vehicle is leased, write “lease” in the “year purchased” column. List whole life insurance policies with the name of the insurance company. List other assets with a description such as “paintings”, “coin collection”, or “antiques”. If applicable, include business assets, such as tools, equipment, inventory, and intangible assets such as domain names, patents, copyrights, etc. To determine equity, subtract the amount owed from its current market value. If you are entering information for an asset and a question does not apply, enter N/A.

Section D – Credit Cards

List all credit cards and lines of credit, even if there is no balance owed.

Section E – Business Information

Complete this section if you or your spouse are self-employed, or have self-employment income. This includes self-employment income from online sales.

E1: List all Accounts Receivable owed to you or your business. Include federal, state and local grants and contracts.

E2: Complete if you or your business accepts credit card payments (e.g., Visa, MasterCard, etc.) and/or virtual currency wallet, exchange or digital currency exchange.

Section F – Employment Information

Complete this section if you or your spouse are wage earners.

If attaching a copy of current pay stub, you do not need to complete this section.

Section G – Non-Wage Household Income

List all non-wage income received monthly.

Net Self-Employment Income is the amount you or your

spouse earns after you pay ordinary and necessary monthly business expenses. This figure should relate to the yearly net profit from Schedule C on your Form 1040 or your current year profit and loss statement. Please attach a copy of Schedule C or your current year profit and loss statement. If net income is a loss, enter “0”.

Net Rental Income is the amount you earn after you pay ordinary and necessary monthly rental expenses. This figure should relate to the amount reported on Schedule E of your Form 1040.

Do not include depreciation expenses. Depreciation is a non-cash expense. Only cash expenses are used to determine ability to pay).

If net rental income is a loss, enter “0”.

Other Income includes distributions from partnerships and subchapter S corporations reported on Schedule K-1, and from limited liability companies reported on Form 1040, Schedule C, D or E. It also includes agricultural subsidies, gambling income, oil credits, and rent subsidies. Enter total distributions from IRAs if not included under Pension Income.

Section H – Monthly Necessary Living Expenses

Enter monthly amounts for expenses. For any expenses not paid monthly, convert as follows:

If a bill is paid …

Calculate the monthly

amount by …

 

Quarterly

Dividing by 3

 

 

Weekly

Multiplying by 4.3

 

 

Biweekly (every two

Multiplying by 2.17

weeks)

 

Semimonthly (twice

Multiplying by 2

each month)

 

Catalog Number 62053J

www.irs.gov

Form 433-F (Rev. 2-2019)

Page 4 of 4

For expenses claimed in boxes 1 and 4, you should provide the IRS allowable standards, or the actual amount you pay if the amount exceeds the IRS allowable standards. IRS allowable standards can be found by accessing https://www.irs.gov/ businesses/small-businesses-self-employed/collection-financial- standards.

Substantiation may be required for any expenses over the standard once the financial analysis is completed.

The amount claimed for Miscellaneous cannot exceed the standard amount for the number of people in your family. The miscellaneous allowance is for expenses incurred that are not included in any other allowable living expense items. Examples are credit card payments, bank fees and charges, reading material and school supplies.

If you do not have access to the IRS web site, itemize your actual expenses and we will ask you for additional proof, if required. Documentation may include pay statements, bank and investment statements, loan statements and bills for recurring expenses, etc.

Housing and Utilities – Includes expenses for your primary residence. You should only list amounts for utilities, taxes and insurance that are not included in your mortgage or rent payments.

Rent – Do not enter mortgage payment here. Mortgage payment is listed in Section B.

Transportation Include the total of maintenance, repairs, insurance, fuel, registrations, licenses, inspections, parking, and tolls for one month.

Public Transportation Include the total you spend for public transportation if you do not own a vehicle or if you have public transportation costs in addition to vehicle expenses.

Medical – You are allowed expenses for health insurance and out-of-pocket health care costs.

Health insurance – Enter the monthly amount you pay for yourself or your family.

Out-of-Pocket health care expenses – are costs not

covered by health insurance, and include:

Medical services

Prescription drugs

Dental expenses

Medical supplies, including eyeglasses and contact lenses. Medical procedures of a purely cosmetic nature, such as plastic surgery or elective dental work are generally not allowed.

Child / Dependent Care – Enter the monthly amount you pay for the care of dependents that can be claimed on your Form 1040.

Estimated Tax Payments – Calculate the monthly

amount you pay for estimated taxes by dividing the quarterly amount due on your Form 1040ES by 3.

Life Insurance – Enter the amount you pay for term life insurance only. Whole life insurance has cash value and should be listed in Section C.

Delinquent State & Local Taxes – Enter the minimum

amount you are required to pay monthly. Be prepared to provide a copy of the statement showing the amount you owe and if applicable, any agreement you have for monthly payments.

Student Loans – Minimum payments on student loans for the taxpayer’s post-secondary education may be allowed if they are guaranteed by the federal government. Be prepared to provide proof of loan balance and payments.

Court Ordered Payments – For any court ordered

payments, be prepared to submit a copy of the court order portion showing the amount you are ordered to pay, the signatures, and proof you are making the payments. Acceptable forms of proof are copies of cancelled checks or copies of bank or pay statements.

Other Expenses not listed above – We may allow

other expenses in certain circumstances. For example, if the expenses are necessary for the health and welfare of the taxpayer or family, or for the production of income. Specify the expense and list the minimum monthly payment you are billed.

Catalog Number 62053J

www.irs.gov

Form 433-F (Rev. 2-2019)

Document Attributes

Fact Name Description
Purpose of Form The IRS 433-F form is used to collect information about a taxpayer's financial condition, which assists the IRS in determining the ability to pay tax debts or establish installment agreements.
Required Information This form requires detailed information on income, expenses, assets, and liabilities, allowing the IRS to assess a taxpayer's overall financial status.
Submission Process Taxpayers can submit the IRS 433-F form either online through the IRS website or by mailing it directly to the appropriate local IRS office, ensuring privacy and compliance with submission guidelines.
Governing Law The IRS 433-F is governed by U.S. federal tax law, specifically the Internal Revenue Code, which outlines the procedures and requirements for tax collection and taxpayer rights.

IRS 433-F: Usage Instruction

Completing IRS Form 433-F is an essential step if you are looking to discuss your financial situation with the IRS. By gathering the required information and filling out the form correctly, you can present a clear picture of your finances. Follow these steps carefully to ensure you complete the form accurately.

  1. Begin by downloading the IRS Form 433-F from the IRS website or obtaining a hard copy from your local IRS office.
  2. At the top of the form, fill in your name, address, and Social Security Number.
  3. Provide your spouse’s information if applicable, including their name, address, and Social Security Number.
  4. In the section for employment, fill in your job title, employer's name, and the length of time you have been employed.
  5. Next, indicate the type of income you receive, such as wages, self-employment income, unemployment benefits, or other sources. Be specific about amounts.
  6. List your monthly expenses in the designated section. Include amounts for necessities like housing, utilities, food, transportation, and insurance.
  7. Next, input your assets. This includes savings accounts, real estate, and other valuable items. Give estimates of the current value of these assets.
  8. Complete the section regarding your bank accounts. Include details of all accounts, such as account numbers and balances.
  9. If you own any vehicles, provide their make, model, year, and estimated resale value.
  10. Once you have filled in all sections, review the form for any errors or missing information.
  11. Sign and date the form at the bottom to certify that the information is true and complete.

After filling out the form, it’s important to submit it to the appropriate IRS office. Depending on your circumstances, you may need to mail it in or submit it electronically. Keep copies for your records and follow up if you do not receive confirmation of your submission.

Frequently Asked Questions

  1. What is the IRS 433-F form?

    The IRS 433-F form is a financial disclosure form used by the Internal Revenue Service to evaluate a taxpayer’s financial situation. It provides a detailed overview of your income, expenses, assets, and liabilities. This information is crucial for the IRS when determining payment plans or settling tax debts.

  2. Why do I need to fill out the IRS 433-F form?

    When you face tax debt or are seeking to negotiate payment options with the IRS, the 433-F form plays a vital role. It allows the IRS to assess your ability to pay what you owe. Completing this form helps establish whether you qualify for an installment agreement, an offer in compromise, or other relief options.

  3. How do I obtain the IRS 433-F form?

    You can easily obtain the IRS 433-F form from the IRS website. It is available for download and printing. Additionally, you may request a physical copy by calling the IRS or visiting a local IRS office. Ensure you have the most current version of the form.

  4. What information do I need to provide on the form?
    • Personal Information: This includes your name, address, Social Security number, and any other relevant identifiers.
    • Income Details: Report all sources of income, including wages, self-employment earnings, rental income, and other sources.
    • Asset Details: List your assets, such as bank accounts, vehicles, real estate, and retirement accounts.
    • Expense Information: Outline your monthly living expenses, including housing, utilities, and transportation costs.
    • Liabilities: Document any debts you have, such as credit card balances, loans, and mortgages.
  5. What happens after I submit the IRS 433-F form?

    Once you submit the 433-F form, the IRS will review your financial information. Depending on your financial situation, they may propose a payment plan, accept an offer in compromise, or take other appropriate actions. The timeline for this process can vary, so be sure to stay in communication with the IRS for updates.

  6. Can I file the IRS 433-F form electronically?

    Currently, the IRS does not allow electronic submission of the 433-F form. You must print and sign the document before mailing it to the appropriate IRS address. Double-check that all required sections are completed to avoid delays.

  7. Do I need to provide supporting documents with the form?

    While supporting documents are not required when submitting the 433-F form, including them can strengthen your case. Documents such as pay stubs, bank statements, and bills can help validate your financial claims and provide a clearer picture of your circumstances.

  8. What if my financial situation changes after I submit the form?

    If your financial situation changes significantly, it’s essential to inform the IRS. They may ask for updated information, or you can submit a revised 433-F form reflecting your new circumstances. Keeping the IRS informed ensures that you remain compliant and that your payment arrangements are appropriate for your situation.

  9. Can I get help filling out the IRS 433-F form?

    Yes, many resources are available to assist you. You can consult with a tax professional, such as an accountant or an enrolled agent, who is familiar with IRS processes. Additionally, the IRS provides guidelines and resources on their website that can help clarify any questions you may have while filling out the form.

  10. What if I refuse to fill out the IRS 433-F form?

    Refusing to complete the 433-F form can lead to serious consequences. The IRS may take aggressive collection actions, including wage garnishments or bank levies. It is in your best interest to cooperate and complete the form to ensure your rights are protected and to explore potential options for resolving your tax obligations.

Common mistakes

When tackling the IRS 433-F form, many individuals often stumble upon several common pitfalls. These mistakes can lead to delays in processing or even unfavorable outcomes with the IRS. Understanding these missteps can save you time, money, and stress.

One prevalent error occurs when people fail to provide complete information about their income. The IRS requires a detailed account of not only wages, but also any other income sources. Omitting details can give the impression of attempting to hide information, which could raise red flags.

Another mistake is inadequate documentation of expenses. When filling out the form, it’s crucial to include proof of necessary living expenses. Forgetting to attach supporting documents, such as receipts or bank statements, can lead to misunderstandings when the IRS reviews your claim.

People also often miscalculate their monthly expenses. It's easy to overlook certain costs, like utilities or medical expenses, especially if you don’t regularly track them. Rounding numbers or guessing can result in discrepancies, ultimately affecting your overall financial picture presented to the IRS.

Additionally, failing to sign and date the form is a common oversight. A neglected signature can delay your submission or even render the form invalid. Always double-check that the form is completed in its entirety before sending it off.

Some individuals mistakenly think they can submit the form online. The IRS 433-F is typically required to be filed in hard copy. Confusion around submission methods can lead to frustration, so be sure you are aware of the correct procedure.

Another frequent error involves unclear or incomplete descriptions of assets. Whether it's property, vehicles, or bank accounts, providing vague details about your assets can lead to further inquiries from the IRS. Clarity and thoroughness are your allies in this situation.

Poor organization can also hinder the process. Many forget to include all relevant details on each section of the form. A well-organized submission helps create a clearer picture of your financial situation, making it easier for IRS personnel to assess your case.

Sometimes, individuals neglect to consult a professional when needed. While it’s possible to fill out the form independently, seeking expert advice can clarify confusing areas and improve the correctness of your submission.

Finally, not keeping copies of your submitted forms is a mistake that can complicate future communication with the IRS. Having records on hand can help you address any issues that may arise after submission and provide evidence should there be any disputes.

Documents used along the form

The IRS Form 433-F is used by individuals to report their financial information to the IRS when applying for an installment agreement or an offer in compromise. When completing this form, you may also need to submit additional documents that provide further support for your financial situation.

  • IRS Form 1040: This is the standard income tax return form that most U.S. citizens file annually. It provides critical details about your income, deductions, and tax owed or refunded.
  • Pay Stubs: Recent pay stubs from your employer help verify your current income. They serve as proof of your earnings and can give the IRS a clear picture of your financial stability.
  • Bank Statements: These documents reflect your income and spending habits. They can show your account balances and regular transactions, giving the IRS insight into your financial situation.
  • Financial Statements: This could include a profit and loss statement if you own a business or any other document summarizing your assets and liabilities. These statements are useful for assessing your overall financial health.

Submitting these documents along with Form 433-F can support your case and help the IRS understand your current financial circumstances. Being thorough and accurate will improve your chances of a favorable outcome.

Similar forms

  • IRS Form 433-A: This form is used for individual taxpayers to detail their financial situation, similar to Form 433-F. It also collects comprehensive information about income, expenses, assets, and liabilities.
  • IRS Form 433-B: Designed for businesses, it serves the same purpose as Form 433-F but focuses on the financial status of entities rather than individuals. It includes business income and expenses.
  • IRS Form 9465: This form is an application for an installment agreement. While not a financial disclosure form per se, it works closely with 433-F by assessing the taxpayer's ability to pay over time.
  • IRS Form 2848: Known as the Power of Attorney form, it allows taxpayers to authorize someone to act on their behalf. Understanding a taxpayer’s financials can be critical in discussions about Form 433-F.
  • IRS Form 8821: This is a Tax Information Authorization form. Like Form 433-F, it permits representatives to obtain tax information but doesn’t require financial disclosures.
  • IRS Form 1040: The individual income tax return form, it is a different document but complements Form 433-F by providing a detailed overview of a taxpayer’s income situation relevant to any financial discussions.
  • IRS Form 1040-ES: This is an estimated tax for individuals. The financial information shared through Form 1040-ES can be useful in conjunction with Form 433-F to understand payment capabilities.
  • IRS Schedule C: This is used by sole proprietors to report income and expenses. It provides a snapshot of financial health, similar to the information requested in Form 433-F.
  • Collection Information Statement (CIS): Although not a specific IRS form, this term refers to the broader category of financial statements, including Form 433-F, that the IRS may request during collections.
  • Bankruptcy Forms: Documents filed in a bankruptcy case share similarities with Form 433-F by detailing debt and asset information. They help assess an individual’s financial standing in an entirely different context.

Dos and Don'ts

When completing the IRS 433-F form, there are important guidelines to follow. Here’s a helpful list of things you should and shouldn’t do:

  • Do provide accurate information: Ensure all figures reflect your real financial situation. Accuracy is crucial.
  • Do keep your records organized: Have documentation ready to support the details you enter on the form.
  • Do sign and date the form: A signature indicates that you affirm the accuracy of the form.
  • Do seek guidance if needed: Consider consulting a tax professional if you have questions or uncertainties.
  • Don’t omit any income sources: Be transparent and include all sources of income, even if they seem minor.
  • Don’t leave fields blank: Fill in every section as required; empty fields can delay processing.
  • Don’t provide outdated information: Use recent financial data to reflect your current situation accurately.
  • Don’t submit the form without a copy: Keep a copy for your records once you’ve submitted it.

Misconceptions

  • Misconception 1: The IRS 433-F form is only for people who owe a lot of taxes.
  • This is not true. While many people who owe significant amounts may use this form, it is also a tool for those with smaller debts. The form helps the IRS understand a taxpayer’s financial situation, regardless of the amount owed.

  • Misconception 2: Filling out the IRS 433-F form guarantees a lower tax bill.
  • This misconception can lead to disappointment. Completing the form does not automatically result in reduced tax liability. It is an information-gathering tool used by the IRS to evaluate payment options.

  • Misconception 3: The IRS 433-F form is the same as the 433-A or 433-B forms.
  • While all three forms serve similar purposes, they are not interchangeable. The 433-F is specifically used for individuals, whereas the 433-A and 433-B are for more complex situations, such as business owners or higher-income taxpayers.

  • Misconception 4: You should only submit the IRS 433-F form if asked by the IRS.
  • Although the IRS may request this form, submitting it voluntarily can be beneficial. By providing the IRS with a clear picture of your financial situation, you may facilitate a resolution to your tax issues.

  • Misconception 5: Once the IRS receives the 433-F form, the process will move quickly.
  • Unfortunately, this is not always the case. The IRS processes forms at its own pace. Delays can occur for various reasons, including high volumes of submissions or additional inquiries based on the information provided.

  • Misconception 6: The information on the IRS 433-F form is private and cannot be shared.
  • This is a misunderstanding of IRS policies. While the IRS does protect taxpayer information, the details provided on the 433-F form may be shared internally within the agency or with other relevant governmental bodies if necessary.

Key takeaways

  • The IRS 433-F form is primarily used for collecting financial information. This form helps the IRS assess your ability to pay back taxes or negotiate a payment plan.
  • Be thorough when filling out the form. Accurate and complete information can help expedite the processing of your case.
  • List all sources of income. Declare all employment earnings, rental income, and any other income sources to provide a comprehensive view of your finances.
  • Detail your living expenses. The IRS wants to understand your financial obligations. Make sure to include costs like housing, utilities, and groceries.
  • Include assets. Compiling information about your assets—such as bank accounts, retirement accounts, and property—helps paint a full picture of your financial situation.
  • Use accurate valuation for your assets. When listing assets, provide their fair market value to ensure the IRS understands their worth.
  • Review the form for errors before submission. Double-check all entries for accuracy and completeness to avoid delays in processing your request.

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