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

What Is Form 433-F Used For?

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 is done on the IRS Form 433-F.

The IRS uses the form 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.

When Is IRS Form 433-F Required?

Depending on your situation, you might complete Form 433-F on your own to apply for an IRS program, or the IRS may request it from you as part of the collection process. Either way, the form gives the IRS the financial details it needs before granting certain types of relief.

You may be required to complete the form if:

• You’re requesting an installment agreement on a balance that’s too large for a streamlined plan.
• You’re applying for currently not collectible (CNC) status because your income barely covers your living expenses.
• You owe over $50,000 and want a payment plan that isn’t tied to direct debit or payroll deduction.
• You’re a business that owes over $25,000 and needs a payment arrangement.
• You can’t afford the minimum monthly payment the IRS normally requires under Form 9465, Installment Agreement Request.

In most cases, the request for Form 433-F comes from the Automated Collection Service (ACS). ACS oversees a large share of collection cases and often uses the form to quickly review taxpayers’ financial situations.

If your case is assigned to a revenue officer, you may still be asked for Form 433-F, but more often they’ll want detailed forms like 433-A or 433-B. Revenue officers work complex cases in person and prefer longer disclosures that provide a full financial picture.

The Benefits of Using IRS Form 433-F for Tax Debt Resolution

There are six 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 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.
• Third, 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.

What Information Do You Need 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 you 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.

How Do You Fill Out IRS Form 433-F Step by Step?

The IRS uses Form 433-F to decide how much you can realistically pay. That means every line matters. Here’s how to get through the form smoothly.

1. Personal Information

At the top, list your name, address, Social Security number, and phone numbers. If you’re married and your spouse’s information applies, add theirs too.

You’ll also need to note how many people you can claim on your tax return, since household size affects your allowable living expenses under IRS National Standards. The larger your household, the more the IRS allows for costs like food, housing, and personal care.

2. Section A: Accounts and Lines of Credit

Here you’ll disclose all your financial accounts. Make sure you include every account, even those with small balances. For each, list the institution name, account number, type of account, and current balance. If it’s a business account, check the box to mark it. Here are the accounts to include:

• Checking accounts
• Savings accounts
• Money market accounts
• Online or mobile accounts (PayPal, Venmo, etc.)
• Investment accounts (stocks, bonds, mutual funds, commodities)
• Retirement accounts (IRAs, 401(k) plans, Keogh, pensions)
• Virtual currency wallets (Bitcoin, Ethereum, or other digital assets)

3. Section B: Real Estate

List every property you own. This includes your primary residence, rental properties, land, or vacation homes. Provide the year purchased, purchase price, current value, balance owed, and equity. If you’ve refinanced, note those details as well.

4. Section C: Other Assets

This is where you include items that don’t fit in the previous categories. These can be cars, boats, recreational vehicles, tools, or business equipment. Include the year purchased, the final payment amount if applicable, current value, and balance owed.

5. Section D: Credit Cards

The IRS wants to see your credit situation, even if you don’t carry a balance. List each card, the credit limit, the amount owed, and the minimum monthly payment.

6. Section E: Business Information

If you own a business or do freelance work, use this section to disclose business-related accounts.

• In E1, list all accounts receivable or the money customers owe you. 
• In E2, report business credit cards or merchant accounts you use to process payments.

7. Section F: Employment Information

Here you’ll provide your current employer’s name, address, and details about your pay. Indicate how often you get paid and list gross pay, taxes withheld, and net pay. If you have multiple jobs, attach another sheet or provide a recent pay stub instead.

8. Section G: Non-Wage Household Income

Not all income comes from a paycheck. Report any non-wage sources here, including:

• Net self-employment income
• Net rental income
• Alimony or child support received
• Pension or Social Security benefits
• Unemployment compensation
• Interest or dividends
• Any other monthly income

9. Section H: Monthly Necessary Living Expenses

This is where you list your regular expenses, including food, clothing, housing, utilities, transportation, medical costs, childcare, and insurance.

The IRS compares your expenses to national and local standards. If you list amounts above those standards, be prepared to show proof with bills, receipts, or statements. Make sure all amounts are converted to a monthly figure, even if you pay them quarterly or annually.

10. Final Step: Sign and Date

When you sign the form, you certify that everything is true and complete. Leaving out bank accounts or assets, even by accident, can create problems with your case. If you run out of space, attach an extra sheet and clearly mark which section it belongs to.

How Do You Submit IRS Form 433-F to the IRS?

The IRS doesn’t use a single address for every Form 433-F. Where you send it depends on the reason you’re filing and what’s in your notice.

1. If you’re submitting Form 433-F with Form 9465 (Installment Agreement Request):

Mail both forms to the address listed in the Form 9465 instructions. The IRS uses different service centers depending on where you live, so always check the current instructions before sending.

2. If the IRS Automated Collection Service (ACS) asked for it:

Use the address or fax number shown on your notice. ACS often prefers fax because it speeds up the review process. There isn’t one universal number; you’ll need to use the one provided in your letter.

3. If a revenue officer requested it:

Send the form directly to the revenue officer or the unit handling your case. The instructions will tell you exactly where it needs to go.

Understanding IRS Allowable Expenses on Form 433-F

When you complete Form 433-F, you’ll notice that it asks for both your actual monthly expenses and the amounts the IRS allows. These allowable expenses are the costs the IRS recognizes as necessary to maintain basic living needs. Anything above those limits may be treated as extra income that could go toward your tax debt.

The IRS uses two sets of financial standards to measure your expenses:

• National Standards – They cover essentials such as food, clothing, personal care items, and out-of-pocket healthcare costs. The allowance depends on how many people live in your household. You’re entitled to the full standard even if your actual spending is less.
• Local Standards – They apply to housing, utilities, and transportation, since these costs vary by location. In these categories, the IRS generally allows either your actual expense or the local standard, whichever is lower, unless you can prove that higher spending is unavoidable.

Why Do These Standards Matter?

The IRS relies on these standards to calculate what it calls your reasonable collection potential. This is the amount it believes you can afford to pay toward your tax debt each month. If your reported expenses are higher than the standard without a valid reason, the IRS may treat the excess as disposable income.

For example, if your household spends $1,200 a month on groceries but the national standard allows $900, the IRS may count the extra $300 as money that should be directed toward your outstanding balance.

IRS Form 433-F vs. Other Collection Forms

Form	When You Use It	Who Should Use It / What It Asks For
Form 433-F	The most common and straightforward version. Used by the Automated Collection Service (ACS) to quickly review your finances.	The most common and straightforward version. Used by the Automated Collection Service (ACS) to quickly review your finances.
Form 433-A	Required when the IRS wants a more detailed picture of your finances, usually in cases handled by a revenue officer.	Individuals and self-employed taxpayers who report their business on a personal return and have more complex financial situations.
Form 433-H	Filed when you request a payment plan for tax debt over $50,000 that you can’t pay off within 72 months.	Wage earners who need a longer or larger installment agreement.
Form 433-A (OIC)	Filed when you request a payment plan for tax debt over $50,000 that you can’t pay off within 72 months.	Wage earners who need a longer or larger installment agreement.
Form 433-A (OIC)	Used if you’re applying for an Offer in Compromise. Helps the IRS and you determine if you qualify and how much you can offer.	Individuals and self-employed people who want to settle their tax bill for less than the full balance.
Form 433-B	Designed for businesses asking for relief, such as an installment agreement. The IRS uses it to review business assets and accounts receivable.	Corporations, partnerships, and LLCs seeking payment options for business tax debts.
Form 433-B (OIC)	Similar to 433-B, but specific to businesses applying for an Offer in Compromise.	Business owners who want to settle outstanding tax liabilities for less than what’s owed.

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 won’t guide you to complete Form 433-F in a way that benefits you, but our team at Tax Samaritan will. 

Our team of CPAs and enrolled agents is specifically trained and dedicated to helping taxpayers resolve their debt issues in the best way possible. This includes critical expert guidance on completing a financial disclosure and providing insight into potential outcomes based on the collected information. 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’re ready to hire a qualified tax professional to help with your IRS Form 433-F and tax problems, contact us today to book a FREE 30-minute consultation.