The IRS 433-F form, also known as the Collection Information Statement, is a document used by the Internal Revenue Service to gather financial information from individuals who are seeking to resolve their tax debt. This form allows taxpayers to report their monthly income and living expenses, providing the IRS with a comprehensive overview of their financial situation. It is a crucial step for those looking to negotiate payment plans or settlements with the agency.
Navigating financial obligations can be challenging, especially when they involve resolving outstanding tax debts with the IRS. The 433-F form plays a crucial role in this process, acting as a tool for individuals to provide the IRS with detailed information about their financial situation. This comprehensive document covers aspects such as income, expenses, and asset information, which are essential for the IRS to determine an individual's ability to pay back taxes. It is used in various scenarios, including setting up payment plans or negotiating settlements. Understanding the critical elements of this form and accurately completing it is paramount, as it influences the IRS's decision regarding payment options. Therefore, the 433-F form serves as a bridge between taxpayers and the IRS, facilitating a clearer understanding of financial capacities and paving the way for mutually agreeable resolutions.
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:
County of Residence
Work:
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.)
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
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
/
D. CREDIT CARDS (Visa, MasterCard, American Express, Department Stores, etc.)
Type
Credit Limit
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)
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.
Out of Pocket Health Care
Food
Total
Housekeeping Supplies
Clothing and Clothing Services
5. Other
Personal Care Products & Services
Miscellaneous
Child / Dependent Care
Estimated Tax Payments
2. Transportation
Term Life Insurance
Retirement (Employer Required)
Gas / Insurance / Licenses /
Retirement (Voluntary)
Parking / Maintenance etc.
Union Dues
Public Transportation
Delinquent State & Local Taxes
(minimum payment)
3. Housing & Utilities
Student Loans (minimum
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)
Maintenance and Repairs
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
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
Multiplying by 4.3
Biweekly (every two
Multiplying by 2.17
weeks)
Semimonthly (twice
Multiplying by 2
each month)
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.
Completing the IRS 433-F form is a critical step for individuals who need to provide financial information to the Internal Revenue Service. This information helps in assessing one's ability to pay owed taxes. The process requires accuracy and attention to detail to ensure all the provided data is precise and correctly reflects the individual's financial situation. The following steps are designed to guide you through filling out the form without overwhelming you with complexity.
After completing the IRS 433-F form, review it to make sure all the information is accurate and true. This form is a crucial document that the IRS uses to understand your financial situation better, guiding them in making decisions regarding payment plans or settlements. Submitting accurate and clear information is vital to ensure a smooth process. Consider consulting with a tax professional if you encounter difficulties or have questions about your specific circumstances.
What is an IRS 433-F form?
The IRS 433-F form, also known as the Collection Information Statement, is used by the Internal Revenue Service to collect financial information from individuals who owe federal taxes. The information provided through this form helps the IRS understand the taxpayer's financial situation and determine payment options or arrangements that might be suitable for them.
Who needs to fill out the IRS 433-F form?
This form is typically required for individuals who cannot immediately pay the full amount of taxes they owe and are seeking an installment agreement or some other form of payment arrangement with the IRS. It may also be requested by the IRS from individuals who are undergoing the collection process.
What kind of information do I need to provide on Form 433-F?
Form 433-F asks for detailed information about your financial situation. This includes your employment status, income sources, bank accounts, living expenses, property (including real estate and vehicles), and other assets. You'll also need to provide information on debts and monthly expenses to give the IRS a comprehensive view of your finances.
Why is it important to fill out Form 433-F accurately?
Accuracy on the Form 433-F is crucial because it allows the IRS to evaluate your financial situation fairly and determine the most appropriate payment arrangement. Providing incorrect or incomplete information might lead to unrealistic payment terms, additional penalties, or even legal action. Always ensure the information is current and accurate to the best of your knowledge.
Can I submit the Form 433-F electronically?
As of the latest update, the IRS allows the submission of Form 433-F through fax or mail. Electronic submission directly through the IRS's website is not available for this form. However, taxpayers can utilize authorized IRS e-file providers to submit this form electronically.
What happens after I submit Form 433-F?
After you submit Form 433-F, the IRS will review your financial information to assess your ability to pay the tax debt. Based on this review, they might propose a payment plan that fits your financial situation or discuss other available options for resolving your tax debt. The IRS may also request additional information or documentation to verify the details provided in your form.
Is there a deadline for submitting Form 433-F?
There isn't a universal deadline for submitting Form 433-F; it is usually requested by an IRS agent as part of the collection process or when an individual is applying for a payment plan. You should submit the form as quickly as possible once requested, to avoid delays in processing your payment arrangement or application.
How can I get assistance with filling out Form 433-F?
If you need help completing Form 433-F, consider reaching out to a tax professional who can provide guidance based on your specific financial situation. The IRS also offers resources and assistance through their website, and local IRS offices may provide in-person help.
Can filling out Form 433-F reduce the amount I owe to the IRS?
Filling out Form 433-F itself does not reduce the amount you owe. However, it could lead to the IRS offering payment options that could include penalties and interest abatement, or in some cases, an offer in compromise which might lower the overall amount owed based on your ability to pay. The primary goal is to establish a manageable payment plan, not to reduce the debt amount.
Filling out IRS Form 433-F, otherwise known as the Collection Information Statement, is a task that often intimidates taxpayers. It's essential for negotiating payment plans or settling tax debts with the IRS. However, overlooking vital details can complicate one's financial situation further. Let's explore some common errors to avoid for a smoother interaction with the taxman.
One of the most frequent mistakes is underreporting income. This error can occur when individuals forget to include all their income sources, such as freelance work, investments, or even small side jobs. The IRS has ways to cross-reference income sources, and discrepancies may lead to audits or penalties. Ensuring that every dollar earned is accounted for on the form is crucial.
Another area where taxpayers trip up is in the overestimation of monthly expenses. While it might seem advantageous to show higher expenses to reduce disposable income, this tactic can backfire. The IRS has standard allowances for expenses such as housing, transportation, and food. If the figures you provide significantly exceed these standards without valid justification, it could raise red flags. Accurately reporting expenses, based on actual amounts paid out, ensures credibility and fosters a smoother negotiation process.
A slip-up often seen is failing to include all debts and liabilities. It’s not uncommon for individuals to omit or forget to list some of their debts on the form. This oversight can lead to an inaccurate representation of one’s financial hardship. The IRS considers the entirety of one's debt obligations when determining feasible payment arrangements. Thus, providing a full picture of all liabilities is paramount for a fair assessment.
Lastly, a mistake that can significantly derail the process is not updating personal information. Whether it’s a change in address, employment, or marital status, updates are crucial. The IRS needs current data to process forms effectively and to communicate with taxpayers. A delay in receiving correspondence from the IRS due to outdated information can lead to missed deadlines and compounded financial issues.
Avoiding these errors can lead to a more favorable outcome when dealing with the IRS. Accuracy, transparency, and thoroughness are your best allies in navigating the complexities of Form 433-F. Remember, the goal is to establish a realistic and manageable plan to address tax obligations, and starting on the right foot makes all the difference.
When dealing with financial matters, especially those related to the Internal Revenue Service (IRS), properly prepared documentation is crucial. The IRS 433-F form, commonly utilized for reporting income and expenses to the IRS, often necessitates the accompaniment of additional forms and documents to ensure a comprehensive overview of an individual's financial situation. These documents vary based on the specific circumstances but are integral to providing the IRS with the necessary information to make informed decisions regarding payment plans or settlements.
Accurate and timely documentation is the foundation of a sound financial relationship with the IRS. Furnishing these forms and documents alongside the IRS 433-F form paints a clear picture of an individual’s financial health, facilitating fair and efficient resolutions. Understanding and gathering the necessary documents prior to submitting forms to the IRS can significantly streamline the process, potentially leading to more favorable terms for payment plans or settlements.
The IRS 433-F form is similar to the IRS 433-A form, which is the Collection Information Statement for Wage Earners and Self-Employed Individuals. Both forms are used by the IRS to gather financial information from individuals to determine their ability to pay outstanding taxes. The main difference lies in their target audience: while the 433-F is a shorter and more streamlined form generally used in quicker assessment processes or with the IRS Fresh Start program, the 433-A is more detailed and designed for self-employed individuals or wage earners with more complex financial situations.
Another document comparable to the IRS 433-F form is the IRS 433-B form, which is the Collection Information Statement for Businesses. Like the 433-F, the 433-B collects financial data, but it focuses on businesses rather than individuals. Both forms are vital in negotiating payment plans or settlements with the IRS, but the information requested on the 433-B is tailored to the operations and financial structures of businesses, including assets, liabilities, and monthly operating expenses.
The IRS Form 9465, Installment Agreement Request, also shares similarities with the IRS 433-F form. While the 433-F collects detailed financial information to assess an individual's ability to pay, Form 9465 is used specifically to request a monthly payment plan for outstanding taxes. In many cases, the information provided on Form 433-F can directly affect the terms and feasibility of the payment plan negotiated through Form 9465, making them closely linked in the process of resolving tax liabilities.
The Offer in Compromise (Form 656) is another document akin to the IRS 433-F form. This form is used when an individual or business cannot fully pay their tax liabilities and seeks to settle for less than the full amount owed. The financial information gathered by the IRS 433-F is crucial in determining the Offer in Compromise's terms, as it helps the IRS assess what the taxpayer can reasonably pay. Although serving different purposes, both forms are integral to negotiating tax liabilities with the IRS.
Lastly, the Financial Statement of Debtor (varies by court form number) used in bankruptcy proceedings can also be compared to the IRS 433-F form. This document collects detailed financial information from individuals filing for bankruptcy, similar to how the 433-F is used to assess a taxpayer's financial situation for tax resolution purposes. While these forms are used in different legal processes, both aim to provide a comprehensive financial snapshot to assist in determining the next steps—whether for settling tax debts or navigating bankruptcy.
When approaching the completion of the IRS 433-F form, a crucial document for detailing your financial situation to the Internal Revenue Service, it is essential to understand the dos and don'ts to avoid common mistakes. Ensuring accuracy and completeness in your submission can significantly impact the outcome of your negotiation with the IRS. Here are nine key guidelines to assist you in this process:
Understanding and adhering to these guidelines can significantly influence the processing of your IRS 433-F form. Handling this document with the care and precision it requires will facilitate a smoother negotiation process with the IRS, potentially leading to a more favorable outcome for your financial situation.
The IRS 433-F form, commonly used to collect financial information from individuals owing taxes, is surrounded by misconceptions. Clarifying these misunderstandings can help taxpayers navigate their financial obligations with more ease and confidence.
The IRS Form 433-F, also known as the Collection Information Statement, is a document used by the Internal Revenue Service to collect financial information from individuals to determine their ability to pay outstanding taxes. Understanding how to properly complete and utilize this form is essential for individuals facing tax obligations. Here are six key takeaways to guide individuals through this process:
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