The IRS 433-A form, also known as the Collection Information Statement for Wage Earners and Self-Employed Individuals, is a detailed document used by the Internal Revenue Service to assess an individual's financial situation and determine a feasible payment plan for outstanding taxes. This form requires comprehensive information about one's income, expenses, assets, and liabilities. For those needing to navigate the complexities of settling tax debts, understanding and accurately filling out this form is a crucial step. Click the button below to start the process of filling out your form with confidence.
Navigating the intricacies of tax resolution often leads individuals to encounter the IRS 433-A form, a critical document for those seeking to establish a payment agreement with the IRS based on their current financial situation. This form delves into the minutiae of an individual's financial life, encompassing assets, liabilities, income, and expenses to paint a comprehensive picture for the IRS. The objective is to provide a transparent overview that aids in determining the most viable payment plan or settlement option, catering to the taxpayer's ability while ensuring compliance with tax laws. Suitable for both individuals and businesses, the IRS 433-A form acts as a cornerstone for negotiations, making it essential for taxpayers to approach this document with diligence and accuracy. By thoroughly documenting one's financial stance, this form paves the way for resolutions that can alleviate the burden of overwhelming tax debts, offering a pathway to financial recovery and stability.
Form 433-A
(May 2020)
Department of the Treasury Internal Revenue Service
Collection Information Statement for Wage
Earners and Self-Employed Individuals
Wage Earners Complete Sections 1, 2, 3, 4, and 5 including the signature line on page 4. Answer all questions or write N/A if the question is not applicable.
Self-Employed Individuals Complete Sections 1, 3, 4, 5, 6 and 7 and the signature line on page 4. Answer all questions or write N/A if the question is not applicable.
For Additional Information, refer to Publication 1854, "How To Prepare a Collection Information Statement."
Include attachments if additional space is needed to respond completely to any question.
Name on Internal Revenue Service (IRS) Account
SSN or ITIN on IRS Account
Employer Identification Number EIN
Section 1: Personal Information
1a
Full Name of Taxpayer and Spouse (if applicable)
1c
Home Phone
1d
Cell Phone
(
)
1b
Address (Street, City, State, ZIP code) (County of Residence)
1e
Business Phone
1f
Business Cell Phone
2b
Name, Age, and Relationship of
persons in household or claimed as a
dependent(s)
2a
Marital Status:
Married
Unmarried (Single, Divorced, Widowed)
3a
Taxpayer
SSN or ITIN
Date of Birth (mmddyyyy)
Driver's License Number and State
3b
Spouse
Section 2: Employment Information for Wage Earners
If you or your spouse have self-employment income instead of, or in addition to wage income, complete Business Information in Sections 6 and 7.
4a
Taxpayer's Employer Name
5a
Spouse's Employer Name
4b
Address (Street, City, State, and ZIP code)
5b
4c
Work Telephone Number
4d
Does employer allow contact at work
5c
5d Does employer allow contact at work
Yes
No
4e
How long with this employer
4f
Occupation
5e
5f Occupation
(years)
(months)
4g
Number of withholding allowances
4h
Pay Period:
5g
5h Pay Period:
claimed on Form W-4
Weekly
Bi-weekly
Monthly
Other
Section 3: Other Financial Information (Attach copies of applicable documentation)
6
Are you a party to a lawsuit (If yes, answer the following)
Plaintiff
Defendant
Location of Filing
Represented by
Docket/Case No.
Amount of Suit
Possible Completion Date (mmddyyyy)
Subject of Suit
$
7
Have you ever filed bankruptcy
(If yes, answer the following)
Date Filed (mmddyyyy)
Date Dismissed (mmddyyyy)
Date Discharged (mmddyyyy)
Petition No.
Location Filed
8
In the past 10 years, have you lived outside of the U.S for 6 months or longer (If yes, answer the following)
Dates lived abroad: from (mmddyyyy)
To (mmddyyyy)
9a
Are you the beneficiary of a trust, estate, or life insurance policy (If yes, answer the following)
Place where recorded:
EIN:
Name of the trust, estate, or policy
Anticipated amount to be received
When will the amount be received
9b
Are you a trustee, fiduciary, or contributor of a trust
Name of the trust:
10
Do you have a safe deposit box (business or personal) (If yes, answer the following)
Location (Name, address and box number(s))
Contents
Value
11
In the past 10 years, have you transferred any assets for less than their full value (If yes, answer the following)
List Asset(s)
Value at Time of Transfer
Date Transferred (mmddyyyy)
To Whom or Where was it Transferred
Catalog Number 20312N
www.irs.gov
Form 433-A (Rev. 5-2020)
Form 433-A (Rev. 2-2019)
Page 2
Section 4: Personal Asset Information for all Individuals (Foreign and Domestic)
12 CASH ON HAND Include cash that is not in a bank
Total Cash on Hand
PERSONAL BANK ACCOUNTS Include all checking, online and mobile (e.g., PayPal etc.) accounts, money market accounts, savings accounts, and stored value cards (e.g., payroll cards, government benefit cards, etc.).
Type of Account
Full Name & Address (Street, City, State, ZIP code) of Bank,
Account Number
Account Balance
As of
Savings & Loan, Credit Union, or Financial Institution
mmddyyyy
13a
13b
13c
Total Cash (Add lines 13a, 13b, and amounts from any attachments)
INVESTMENTS Include stocks, bonds, mutual funds, stock options, certificates of deposit, and retirement assets such as IRAs, Keogh, 401(k) plans and commodities (e.g., gold, silver, copper, etc.). Include all corporations, partnerships, limited liability companies, or other business entities in which you are an officer, director, owner, member, or otherwise have a financial interest. Include attachment(s) if additional space is needed to respond.
Type of Investment
Full Name & Address
Current Value
Loan Balance (if applicable)
Equity
or Financial Interest
(Street, City, State, ZIP code) of Company
Value minus Loan
14a
Phone
14b
VIRTUAL CURRENCY (CRYPTOCURRENCY) List all virtual currency you own or in which you have a financial interest. (e.g., Bitcoin, Ethereum, Litecoin, Ripple, etc.) If applicable, attach a statement with each virtual currency’s public key.
Name of Virtual Currency Wallet,
Email Address Used to Set-up
Location(s) of Virtual Currency
Virtual Currency
Type of Virtual Currency
Amount and Value in
Exchange or Digital Currency
With the Virtual Currency
(Mobile Wallet, Online, and/or
US dollars as of
Exchange (DCE)
Exchange or DCE
External Hardware storage)
today (e.g., 10 Bitcoins
$64,600.00 USD)
14c
14d
14e
Total Equity (Add lines 14a through 14d and amounts from any attachments)
AVAILABLE CREDIT Include all lines of credit and bank issued credit cards.
Full Name & Address (Street, City, State, ZIP code) of Credit Institution
Credit Limit
Amount Owed
Available Credit
15a
Acct. No
15b
15c
Total Available Credit (Add lines 15a, 15b and amounts from any attachments)
16a
LIFE INSURANCE Do you own or have any interest in any life insurance policies with cash value (Term Life insurance does
not have a cash value)
If yes, complete blocks 16b through 16f for each policy.
16b
Name and Address of Insurance
Company(ies):
16c
Policy Number(s)
16d
Owner of Policy
16e
Current Cash Value
16f
Outstanding Loan Balance
16g
Total Available Cash (Subtract amounts on line 16f from line 16e and include amounts from any attachments)
Page 3
REAL PROPERTY Include all real property owned or being purchased
Purchase Date
Current Fair
Current Loan
Amount of
Date of Final
(mmddyyyy)
Market Value
Balance
Monthly Payment
Payment
FMV Minus Loan
(FMV)
17a
Property Description
Location (Street, City, State, ZIP code) and County
Lender/Contract Holder Name, Address (Street, City, State, ZIP code), and Phone
17b
17c Total Equity (Add lines 17a, 17b and amounts from any attachments)
PERSONAL VEHICLES LEASED AND PURCHASED Include boats, RVs, motorcycles, all-terrain and off-road vehicles, trailers, etc.
Description (Year, Mileage, Make/Model,
Purchase/
Lease Date
Tag Number, Vehicle Identification Number)
18a Year
Make/Model
Mileage
License/Tag Number
Lender/Lessor
Name, Address
(Street, City, State,
ZIP code), and Phone
Vehicle Identification Number
18b Year
18c Total Equity (Add lines 18a, 18b and amounts from any attachments)
PERSONAL ASSETS Include all furniture, personal effects, artwork, jewelry, collections (coins, guns, etc.), antiques or other assets. Include intangible assets such as licenses, domain names, patents, copyrights, mining claims, etc.
19a Property Description
Lender/Lessor Name, Address (Street, City, State, ZIP code), and Phone
19b Property Description
19c Total Equity (Add lines 19a, 19b and amounts from any attachments)
Page 4
If you are self-employed, sections 6 and 7 must be completed before continuing.
Section 5: Monthly Income and Expenses
Monthly Income/Expense Statement (For additional information, refer to Publication 1854.)
Total Income
Total Living Expenses
IRS USE ONLY
Source
Gross Monthly
Expense Items 6
Actual Monthly
Allowable Expenses
20
Wages (Taxpayer) 1
35
Food, Clothing and Misc. 7
21
Wages (Spouse) 1
36
Housing and Utilities 8
22
Interest - Dividends
37
Vehicle Ownership Costs 9
23
Net Business Income 2
38
Vehicle Operating Costs 10
24
Net Rental Income 3
39
Public Transportation 11
25
Distributions (K-1, IRA, etc.) 4
40
Health Insurance
26
Pension (Taxpayer)
41
Out of Pocket Health Care Costs 12
27
Pension (Spouse)
42
Court Ordered Payments
28
Social Security (Taxpayer)
43
Child/Dependent Care
29
Social Security (Spouse)
44
Life Insurance
30
Child Support
45
Current year taxes (Income/FICA) 13
31
Alimony
46
Secured Debts (Attach list)
Other Income (Specify below) 5
47
Delinquent State or Local Taxes
32
48
Other Expenses (Attach list)
33
49
Total Living Expenses (add lines 35-48)
34
Total Income (add lines 20-33)
50
Net difference (Line 34 minus 49)
1Wages, salaries, pensions, and social security: Enter gross monthly wages and/or salaries. Do not deduct tax withholding or allotments taken out of pay, such as insurance payments, credit union deductions, car payments, etc. To calculate the gross monthly wages and/or salaries:
If paid weekly - multiply weekly gross wages by 4.3. Example: $425.89 x 4.3 = $1,831.33
If paid biweekly (every 2 weeks) - multiply biweekly gross wages by 2.17. Example: $972.45 x 2.17 = $2,110.22
If paid semimonthly (twice each month) - multiply semimonthly gross wages by 2. Example: $856.23 x 2 = $1,712.46
2Net Income from Business: Enter monthly net business income. This is the amount earned after ordinary and necessary monthly business expenses are paid. This figure is the amount from page 6, line 89. If the net business income is a loss, enter “0”. Do not enter a negative number. If this amount is more or less than previous years, attach an explanation.
3Net Rental Income: Enter monthly net rental income. This is the amount earned after ordinary and necessary monthly rental expenses are paid. Do not include deductions for depreciation or depletion. If the net rental income is a loss, enter “0.” Do not enter a negative number.
4Distributions: Enter the total 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. Enter total distributions from IRAs if not included under pension income.
5Other Income: Include agricultural subsidies, unemployment compensation, gambling income, oil credits, rent subsidies, sharing economy income from providing on-demand work, services or goods (e.g., Uber, Lyft, AirBnB, VRBO) and income through digital platforms like an app or website, etc.
6Expenses not generally allowed: We generally do not allow tuition for private schools, public or private college expenses, charitable contributions, voluntary retirement contributions or payments on unsecured debts. However, we may allow the expenses if proven that they are necessary for the health and welfare of the individual or family or the production of income. See Publication 1854 for exceptions.
7Food, Clothing and Miscellaneous: Total of food, clothing, housekeeping supplies, and personal care products for one month. 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.
8Housing and Utilities: For principal residence: Total of rent or mortgage payment. Add the average monthly expenses for the following: property taxes, homeowner’s or renter’s insurance, maintenance, dues, fees, and utilities. Utilities include gas, electricity, water, fuel, oil, other fuels, trash collection, telephone, cell phone, cable television and internet services.
9Vehicle Ownership Costs: Total of monthly lease or purchase/loan payments.
10Vehicle Operating Costs: Total of maintenance, repairs, insurance, fuel, registrations, licenses, inspections, parking, and tolls for one month.
11Public Transportation: Total of monthly fares for mass transit (e.g., bus, train, ferry, taxi, etc.)
12Out of Pocket Health Care Costs: Monthly total of medical services, prescription drugs and medical supplies (e.g., eyeglasses, hearing aids, etc.)
13Current Year Taxes: Include state and Federal taxes withheld from salary or wages, or paid as estimated taxes.
Certification: Under penalties of perjury, I declare that to the best of my knowledge and belief this statement of assets, liabilities, and other information is true, correct, and complete.
Taxpayer's Signature
Spouse's signature
Date
After we review the completed Form 433-A, you may be asked to provide verification for the assets, encumbrances, income and expenses reported. Documentation may include previously filed income tax returns, pay statements, self-employment records, bank and investment statements, loan statements, bills or statements for recurring expenses, etc.
IRS USE ONLY (Notes)
Page 5
Sections 6 and 7 must be completed only if you are SELF-EMPLOYED.
Section 6: Business Information
51 Is the business a sole proprietorship (filing Schedule C)
Yes, Continue with Sections 6 and 7.
No, Complete Form 433-B.
All other business entities, including limited liability companies, partnerships or corporations, must complete Form 433-B.
52Business Name & Address (if different than 1b)
53
Employer Identification Number
54 Type of Business
55
Is the business a
Federal Contractor
56
Business Website (web address)
57
Total Number of Employees
58
Average Gross Monthly Payroll
59
Frequency of Tax Deposits
60
Does the business engage in e-Commerce
(Internet sales) If yes, complete lines 61a and 61b
PAYMENT PROCESSOR (e.g., PayPal, Authorize.net, Google Checkout, etc.) Include virtual currency wallet, exchange or digital currency exchange.
Name & Address (Street, City, State, ZIP code). Name & Address (Street, City, State, ZIP code)
Payment Processor Account Number
61a
61b
CREDIT CARDS ACCEPTED BY THE BUSINESS
Credit Card
Merchant Account Number
Issuing Bank Name & Address (Street, City, State, ZIP code)
62a
62b
62c
63 BUSINESS CASH ON HAND Include cash that is not in a bank.
BUSINESS BANK ACCOUNTS Include checking accounts, online and mobile (e.g., PayPal) accounts, money market accounts, savings accounts, and stored value cards (e.g., payroll cards, government benefit cards, etc.). Report Personal Accounts in Section 4.
Full name & Address (Street, City, State, ZIP code)
of Bank,Savings & Loan, Credit Union or Financial Institution.
64a
64b
64c
Total Cash in Banks (Add lines 64a, 64b and amounts from any attachments)
ACCOUNTS/NOTES RECEIVABLE Include e-payment accounts receivable and factoring companies, and any bartering or online auction accounts. (List all contracts separately, including contracts awarded, but not started.) Include Federal, state and local government grants and contracts.
Accounts/Notes Receivable & Address (Street, City, State, ZIP code)
Status (e.g., age,
Date Due
Invoice Number or Government
Amount Due
factored, other)
Grant or Contract Number
65a
65b
65c
65d
65e
65f Total Outstanding Balance (Add lines 65a through 65e and amounts from any attachments)
Page 6
BUSINESS ASSETS Include all tools, books, machinery, equipment, inventory or other assets used in trade or business. Include a list and show the value of all intangible assets such as licenses, patents, domain names, copyrights, trademarks, mining claims, etc.
66a
Location (Street, City, State, ZIP code) and Country
Lender/Lessor/Landlord
Name, Address (Street,
City, State, ZIP code), and Phone
66b
Lender/Lessor/Landlord Name, Address (Street, City, State, ZIP code), and Phone
66c Total Equity (Add lines 66a, 66b and amounts from any attachments)
Section 7 should be completed only if you are SELF-EMPLOYED
Section 7: Sole Proprietorship Information (lines 67 through 87 should reconcile with business Profit and Loss Statement)
Accounting Method Used:
Cash
Accrual
Use the prior 3, 6, 9 or 12 month period to determine your typical business income and expenses.
Income and Expenses during the period (mmddyyyy)
to (mmddyyyy)
Provide a breakdown below of your average monthly income and expenses, based on the period
of time used above.
Total Monthly Business Income
Total Monthly Business Expenses (Use attachments as needed)
Expense Items
67
Gross Receipts
77
Materials Purchased 1
68
Gross Rental Income
78
Inventory Purchased 2
69
Interest
79
Gross Wages & Salaries
70
Dividends
80
Rent
71
Cash Receipts not included in lines 67-70
81
Supplies 3
Other Income (Specify below)
82
Utilities/Telephone 4
72
83
Vehicle Gasoline/Oil
73
84
Repairs & Maintenance
74
85
Insurance
75
86
Current Taxes 5
76
Total Income (Add lines 67 through 75)
87
Other Expenses, including installment payments
(Specify)
88
Total Expenses (Add lines 77 through 87)
89
Net Business Income (Line 76 minus 88) 6
Enter the monthly net income amount from line 89 on line 23, section 5. If line 89 is a loss, enter "0" on line 23, section 5.
Self-employed taxpayers must return to page 4 to sign the certification.
1Materials Purchased: Materials are items directly related to the production of a product or service.
2Inventory Purchased: Goods bought for resale.
3Supplies: Supplies are items used in the business that are consumed or used up within one year. This could be the cost of books, office supplies, professional equipment, etc.
4Utilities/Telephone: Utilities include gas, electricity, water, oil, other fuels, trash collection, telephone, cell phone and business internet.
5Current Taxes: Real estate, excise, franchise, occupational, personal property, sales and employer’s portion of employment taxes.
6Net Business Income: Net profit from Form 1040, Schedule C may be used if duplicated deductions are eliminated (e.g., expenses for business use of home already included in housing and utility expenses on page 4). Deductions for depreciation and depletion on Schedule C are not cash expenses and must be added back to the net income figure. In addition, interest cannot be deducted if it is already included in any other installment payments allowed.
Privacy Act: The information requested on this Form is covered under Privacy Acts and Paperwork Reduction Notices which have already been provided to the taxpayer.
Filling out the IRS Form 433-A is a necessary step for individuals who need to provide the Internal Revenue Service (IRS) with detailed information about their financial situation. This form is often used to set up payment plans or to settle tax debt. It’s important to approach this task with careful attention to detail, as accurately representing your financial status is crucial. To ensure that you complete the form correctly, follow the step-by-step instructions outlined below.
Once the IRS Form 433-A has been submitted, the IRS will review the information to understand your financial situation better. They may use this data to determine eligibility for payment plans or offer in compromise settlements. Expect communication from the IRS regarding the next steps, which may include requests for additional information or clarification. Remember, prompt and truthful responses will facilitate the process of finding a manageable resolution to your tax situation.
Form 433-A, known as the Collection Information Statement for Wage Earners and Self-Employed Individuals, is a detailed form used by the IRS to gather financial information. This form is necessary for individuals who owe federal taxes and are seeking to set up a payment plan or settle their tax debt for less than the full amount owed. Specifically, it's used by:
Form 433-A requires comprehensive information about your financial situation. The main categories of information you need to provide include:
The IRS uses the information you provide on Form 433-A to evaluate your financial situation and determine your ability to pay the tax debt. The analysis includes:
Failing to fill out Form 433-A, or submitting it with incomplete or inaccurate information, can have serious consequences. These include:
Filling out the IRS 433-A form, a document necessary for individuals to provide their financial information to the Internal Revenue Service (IRS), is a task that demands meticulous attention to detail. Unfortunately, mistakes can easily be made. These errors not only potentially delay the resolution of a taxpayer’s case but also increase the risk of an unfavorable outcome. Here are six common mistakes individuals make when completing this form:
Omitting or Providing Incomplete Information: One of the fundamental mistakes is the failure to provide all necessary details or leaving sections blank. This form is designed to give the IRS a full picture of an individual's financial situation. Any gaps can lead to incorrect assessments or extended processing times.
Underreporting Income: Intentionally or unintentionally reporting less income than actually earned is a serious error. This not only skews the financial analysis but also flags the submission for potential audit and penalties due to misrepresentation.
Overestimating Expenses: While it might seem beneficial in the short term to overstate expenses in hopes of reducing apparent financial capacity, such actions can lead to complications. Verifiability of information is crucial, and discrepancies can attract unfavorable attention from the IRS.
Misclassifying Assets and Liabilities: Incorrectly defining what constitutes an asset or a liability can significantly affect the outcome. It's vital to accurately categorize property and debts to ensure an accurate determination of one's financial standing.
Not Attaching Required Documentation: The IRS often requires documentation to support the figures reported on the form. Failing to attach these documents, such as pay stubs, bank statements, and bills, can stall the process.
Ignoring Tax Debt Information: Lastly, overlooking the inclusion of precise tax debt details can be detrimental. This information aids the IRS in understanding the full scope of one’s financial obligations and is pivotal in negotiating terms that might include installment plans or offers in compromise.
To navigate the complex process of submitting IRS forms accurately, individuals may find it beneficial to seek guidance from a professional. This approach ensures not only that all relevant information is correctly presented but also significantly reduces the likelihood of errors that could complicate one’s financial dealings with the IRS.
The IRS Form 433-A is a crucial document for individuals looking to set up a payment plan or negotiate other terms for their tax liability based on their financial situation. However, navigating through the tax resolution process often entails more than just this one form. To get a comprehensive understanding and successfully navigate through this process, several other forms and documents are typically utilized alongside Form 433-A. Knowing what these documents are and their purpose can greatly streamline the process.
Collectively, these documents and forms paint a detailed picture of the taxpayer's financial situation for the IRS. They play a pivotal role in establishing a fair and manageable resolution to outstanding tax liabilities. Familiarizing oneself with these documents and understanding their significance in the context of the IRS Form 433-A can make the tax resolution process more navigable and less daunting for taxpayers facing financial hardship.
This form is designed for businesses, as opposed to IRS 433-A, which is meant for individual taxpayers. Both forms serve a similar purpose: they are used to collect financial information from the taxpayer to help the IRS determine how the individual can settle their outstanding tax debts. The structure of the questions and the type of financial details requested are comparable, tailored to the entity—business or individual—providing the information.
IRS Form 1040 and IRS 433-A may seem different at first glance—one is a tax return, and the other is a collection information statement. However, both require detailed financial information from the taxpayer. Form 1040 focuses on income, deductions, and credits to calculate taxes owed or refunds due for a specific tax year, while IRS 433-A assesses the taxpayer's ability to pay back taxes. The similarity lies in the necessity for thorough financial disclosure.
This form is used to request an installment agreement for paying back taxes. While IRS 433-A collects comprehensive financial information to evaluate a taxpayer's ability to pay, Form 9465 is the formal request to make payments over time. They are similar in that they both play pivotal roles in the process of resolving unpaid taxes, often being used together to negotiate payment terms with the IRS.
IRS Form 656 pertains to an Offer in Compromise, allowing taxpayers to settle their tax debt for less than the full amount they owe. Like the IRS 433-A, it's part of the negotiation process with the IRS for taxpayers seeking relief from financial burdens. Financial disclosure is critical in both documents, though IRS 433-A is broader in scope, while Form 656 is specifically for proposing a compromise settlement.
Although not an IRS form, personal financial statements serve a similar purpose to IRS 433-A in that they provide a comprehensive overview of an individual's financial status, including assets, liabilities, income, and expenses. The IRS 433-A can be considered a specialized form of a personal financial statement, tailored for the specific context of resolving tax debt.
When filing for bankruptcy, debtors must complete schedules that detail their financial situation, akin to the information requested on IRS 433-A. These schedules are necessary for the court to understand the debtor's ability to pay creditors. Similarly, IRS 433-A is used by the IRS to assess a taxpayer's financial ability to settle outstanding tax obligations.
Mortgage applications require detailed financial information from the applicant to determine their eligibility for a loan, much like the IRS 433-A is used to evaluate a person's financial capability to settle tax debts. Though serving different purposes—one for securing a loan and the other for resolving tax liabilities—both demand thorough financial disclosure from the individual.
Filling out the IRS 433-A form, which is used to collect financial information necessary for tax resolution options, requires accuracy and honesty. Below are key dos and don'ts to help guide you through the process.
Many people have misconceptions about the IRS Form 433-A, which can lead to confusion and mistakes when trying to resolve tax debts. Here are four common misunderstandings and the facts to set them straight:
Only businesses need to file IRS Form 433-A. This is not the case. While businesses might use a similar form, Form 433-B, the IRS Form 433-A is designed for individual taxpayers. It is used to collect financial information from individuals to determine their ability to pay a tax debt.
Filling out Form 433-A will automatically reduce your tax debt. Unfortunately, this is a misconception. Completing and submitting Form 433-A provides the IRS with your financial information so they can assess your payment capability. It is the basis for negotiating payment terms or an offer in compromise, but it does not guarantee debt reduction.
You only need to include your income information. Form 433-A requires much more than just income information. Taxpayers must also provide detailed data about their expenses, assets, and liabilities. This comprehensive financial profile helps the IRS understand your financial situation fully.
Submitting Form 433-A means the IRS will immediately seize your assets. This is a worry for many, but it’s not accurate. While the IRS does ask for detailed asset information on Form 433-A, its primary goal is to work with taxpayers to find reasonable payment solutions. Asset seizure is a last resort, not a first step, after you submit Form 433-A.
The IRS 433-A form, officially named the Collection Information Statement for Wage Earners and Self-Employed Individuals, is a detailed form used by the IRS to gather financial information from individuals to determine their ability to pay outstanding taxes. Here are ten key takeaways regarding filling out and using the 433-A form:
Completing the IRS 433-A form accurately is crucial for individuals working to resolve tax debts. It provides the IRS with the necessary information to make informed decisions regarding payment plans or other tax relief options. Taking the process seriously and seeking professional advice if needed can help to navigate this step more effectively.
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