IRS Form 433-F – How To Prepare Collection Information Statement

IRS Form 433-F – What You Need To Know

If you are in a situation where you owe money for tax debts, and you need to work out a payment plan or settlement offer with the IRS, a financial disclosure is necessary. This financial disclosure done in the IRS Form 433-F, is essential for the IRS to complete its analysis on whether you have the ability to pay the amount owed in full, whether you need to pay it now or over time, or whether another tax resolution option is available. To make matters worse, the IRS disclosure forms have been historically complex to fill out. And, easy to make unfavorable errors when completing.

Why The Collection Information Statement Is A Good Thing

There are actually five different Form 433s for various types of collection situations with the IRS. The benefits of the Form 433-F are multiple. First, it’s far shorter and easier to understand. At only two pages, the form is significantly easier to manage than similar documents that are six pages or more. Second, the streamlined form has far less questions to answer to the IRS, which is a good thing. The more questions one has to answer, the higher the chance of an answer making things go sideways.

The Form 433-F is quite versatile. The IRS can use the form when you owe less than $250,000 or $100,000 from a trust fund recovery. It commonly applies in cases where there is an agreement for an automated payment from a paying account owned by the taxpayer and there’s no further communication needed. No surprise then, the IRS Automated Collection Service heavily uses the form. They handle most claims electronically and by correspondence and are very short on in-person involvement or case management.

In-Person Reviews And Audits

In-person reviews and audits are unlikely to rely on the IRS Form 433-F because most revenue officers know that their managers will reject the 433-F for alternative forms that demand a greater scrutiny of information. This is consistent with the fact that people have already been assigned to the case and have spent time on the matter. If everything is computerized and paper-handled, the opposite is more likely to occur.

When the collection has ended, the automatic payments end, unlike a tax lien, where the tax filer needs to file a request for cessation, or funds will continue to be seized and turned over to the IRS. In short, a resolution plan with an IRS Form 433-F can let taxpayers return to a normal life.

Information Required For The IRS Collection Form

Keep in mind that the financial disclosure process is geared to determine whether and how much one can pay. That means a taxpayer will need to disclose information on still:

• All personal bank accounts and investment accounts
• Real estate holdings
• Capital assets like cars, boats ,and large equipment
• Credit card accounts
• All business information if a partner to or owner of a business
• Employment information
• All sources of earned and passive income
• Monthly living expenses

Based on the provided data, the IRS can determine what the taxpayer can afford to pay. The Form IRS 433-F won’t guarantee the approval of an installment plan, currently non-collectible status, etc. However, a tax resolution professional can ensure that the form is accurately and completely prepared. And that it paints you in the most favourable light so as to increase the likelihood of acceptance of the proposed terms for resolution.

Rely on Expert Help For Preparing The IRS Form 433-F

If you are in a situation where you need to work out a plan with the IRS regarding a tax debt, don’t go at it alone. The IRS is under no obligation to help you fill out the forms to your benefit. However, Peace of Mind Tax Help and their team of enrolled agents are specifically trained and dedicated to helping taxpayers resolve their debt issues in the best way possible. That includes critical expert guidance in filling out a financial disclosure and providing guidance on the potential outcomes from the information collected. It’s a far better position to be in than filing the paperwork alone and wondering how the IRS will react.

At Tax Samaritan, we put our clients first, providing them with superior service for a reasonable fee.

If you are ready to hire a qualified tax professional to handle your problems with the IRS, contact us today to get help with your IRS Form 433-F!