Fill in a Valid IRS 433-A Template

The IRS 433-A form is a financial statement used by the Internal Revenue Service to gather information about an individual's income, expenses, and assets. This form is typically required during the process of negotiating a payment plan or settling tax debts. Understanding how to accurately fill it out can significantly impact your financial negotiations with the IRS.

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The IRS 433-A form plays a crucial role for individuals dealing with tax debts. It serves as a comprehensive financial statement for the Internal Revenue Service. When a taxpayer is unable to pay their tax bill in full, this form helps provide a detailed picture of their financial status. It collects essential information about income, expenses, assets, and liabilities. This data allows the IRS to determine the taxpayer's ability to pay and explore options for resolution, such as installment agreements or offers in compromise. Filling out this form accurately is important; it helps taxpayers present their case effectively. Understanding the key components of the IRS 433-A form can simplify the process and empower individuals to take control of their tax obligations. Whether you're negotiating with the IRS or seeking potential relief options, familiarizing yourself with this essential document is an important step toward financial recovery.

IRS 433-A Example

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

Full Name of Taxpayer and Spouse (if applicable)

Home Phone

Cell Phone

(

)

(

)

Address (Street, City, State, ZIP code) (County of Residence)

Business Phone

Business Cell Phone

(

)

(

)

Name, Age, and Relationship of

persons in household or claimed as a

dependent(s)

Marital Status:

Married

Unmarried (Single, Divorced, Widowed)

Taxpayer

SSN or ITIN

Date of Birth (mmddyyyy)

Driver's License Number and State

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.

Taxpayer

Spouse

Taxpayer's Employer Name

Spouse's Employer Name

Address (Street, City, State, and ZIP code)

Work Telephone Number

Does employer allow contact at work

Work Telephone Number

5d Does employer allow contact at work

(

)

Yes

(

)

Yes

How long with this employer

Occupation

How long with this employer

5f Occupation

(years)

(months)

(years)

(months)

Number of withholding allowances

Pay Period:

Number of withholding allowances

5h Pay Period:

claimed on Form W-4

Weekly

Bi-weekly

claimed on Form W-4

Weekly

Bi-weekly

Monthly

Other

Monthly

Other

Section 3: Other Financial Information (Attach copies of applicable documentation)

Are you a party to a lawsuit (If yes, answer the following)

Yes

Plaintiff

Defendant

Location of Filing

Represented by

Docket/Case No.

Amount of Suit

Possible Completion Date (mmddyyyy)

Subject of Suit

Have you ever filed bankruptcy

(If yes, answer the following)

Yes

Date Filed (mmddyyyy)

Date Dismissed (mmddyyyy)

Date Discharged (mmddyyyy)

Petition No.

Location Filed

In the past 10 years, have you lived outside of the U.S for 6 months or longer (If yes, answer the following)

Yes

Dates lived abroad: from (mmddyyyy)

To (mmddyyyy)

Are you the beneficiary of a trust, estate, or life insurance policy (If yes, answer the following)

Yes

Place where recorded:

EIN:

Name of the trust, estate, or policy

Anticipated amount to be received

When will the amount be received

Are you a trustee, fiduciary, or contributor of a trust

Yes

Name of the trust:

EIN:

Do you have a safe deposit box (business or personal) (If yes, answer the following)

Yes

Location (Name, address and box number(s))

Contents

Value

In the past 10 years, have you transferred any assets for less than their full value (If yes, answer the following)

Yes

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
		Savings & Loan, Credit Union, or Financial Institution			mmddyyyy
					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
Type of Investment	Full Name & Address		As of		Equity
or Financial Interest	(Street, City, State, ZIP code) of Company		As of		Value minus Loan
				mmddyyyy
14a
	Phone	$	$		$
14b

Phone

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

As of

mmddyyyy

15a

Acct. No

15b

Acct. No

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)

Yes

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)

Catalog Number 20312N

www.irs.gov

Form 433-A (Rev. 5-2020)

Form 433-A (Rev. 2-2019)

Page 3

REAL PROPERTY Include all real property owned or being purchased

Purchase Date

Current Fair

Current Loan

Amount of

Date of Final

Equity

(mmddyyyy)

Market Value

Balance

Monthly Payment

Payment

FMV Minus Loan

(FMV)

(mmddyyyy)

17a

Property Description

Location (Street, City, State, ZIP code) and County

Lender/Contract Holder Name, Address (Street, City, State, ZIP code), and Phone

Phone

17b

Property Description

Location (Street, City, State, ZIP code) and County

Lender/Contract Holder Name, Address (Street, City, State, ZIP code), and Phone

Phone

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/

Current Fair

Current Loan

Amount of

Date of Final

Equity

Lease Date

Market Value

Payment

Tag Number, Vehicle Identification Number)

(mmddyyyy)

(FMV)

Balance

Monthly Payment

(mmddyyyy)

FMV Minus Loan

18a Year

Make/Model

Mileage

License/Tag Number

Lender/Lessor

Name, Address

(Street, City, State,

ZIP code), and Phone

Vehicle Identification Number

Phone

18b Year

Make/Model

Mileage

License/Tag Number

Lender/Lessor

Name, Address

(Street, City, State,

ZIP code), and Phone

Vehicle Identification Number

Phone

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.

	Purchase/		Current Fair		Current Loan	Amount of	Date of Final		Equity
	Lease Date		Market Value		Current Loan	Amount of	Payment		Equity
	(mmddyyyy)		(FMV)		Balance	Monthly Payment	(mmddyyyy)		FMV Minus Loan
19a Property Description		$			$	$			$
		$			$	$			$
Location (Street, City, State, ZIP code) and County				Lender/Lessor Name, Address (Street, City, State, ZIP code), and Phone
						Phone
19b Property Description		$			$	$			$
		$			$	$			$
Location (Street, City, State, ZIP code) and County				Lender/Lessor Name, Address (Street, City, State, ZIP code), and Phone
						Phone
19c Total Equity (Add lines 19a, 19b and amounts from any attachments)								$

Catalog Number 20312N

www.irs.gov

Form 433-A (Rev. 5-2020)

Form 433-A (Rev. 2-2019)	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)

Catalog Number 20312N

www.irs.gov

Form 433-A (Rev. 5-2020)

Form 433-A (Rev. 2-2019)		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	Yes	No
						Federal Contractor	Yes	No
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			Yes	No
				(Internet sales) If yes, complete lines 61a and 61b			Yes	No

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.

Total Cash on Hand

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.

	Type of Account	Full name & Address (Street, City, State, ZIP code)	Account Number	Account Balance
		Full name & Address (Street, City, State, ZIP code)		As of
		of Bank,Savings & Loan, Credit Union or Financial Institution.
					mmddyyyy
					mmddyyyy
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)	(mmddyyyy)	Grant or Contract Number	Amount Due
65a				$
65b				$
65c				$
65d				$
65e				$
65f Total Outstanding Balance (Add lines 65a through 65e and amounts from any attachments)				$

Catalog Number 20312N

www.irs.gov

Form 433-A (Rev. 5-2020)

Form 433-A (Rev. 2-2019)

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.

		Purchase/		Current Fair	Current Loan	Amount of	Date of Final	Equity
		Lease Date		Market Value	Current Loan	Amount of	Payment	Equity
		(mmddyyyy)		(FMV)	Balance	Monthly Payment	(mmddyyyy)	FMV Minus Loan
66a	Property Description		$		$	$		$
			$		$	$		$
	Location (Street, City, State, ZIP code) and Country				Lender/Lessor/Landlord	Name, Address (Street,	City, State, ZIP code), and Phone
						Phone
66b	Property Description		$		$	$		$
			$		$	$		$

Location (Street, City, State, ZIP code) and Country

Lender/Lessor/Landlord Name, Address (Street, City, State, ZIP code), and Phone

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)
	Source	Gross Monthly		Expense Items		Actual Monthly
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		$
76	Total Income (Add lines 67 through 75)	$		(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.

IRS USE ONLY (Notes)

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.

Catalog Number 20312N

www.irs.gov

Form 433-A (Rev. 5-2020)

Click for IRS 433-A File

File Breakdown

Fact Name	Description
Purpose	The IRS 433-A form is used by the Internal Revenue Service to collect financial information from individuals regarding their assets, income, and expenses. This information helps the IRS determine an individual's ability to pay tax debts.
Who Must File	This form is required primarily for individuals who owe back taxes and are seeking a payment plan or offer in compromise. It may also be used by taxpayers undergoing a collection due process hearing.
Information Required	The form requires details about bank accounts, real estate, vehicles, and monthly living expenses. Additional supporting documentation may also be requested by the IRS.
Submission Method	Taxpayers can submit form 433-A by mail or fax, depending on the instructions provided by the IRS. Electronic submission is not available for this form at this time.

Guide to Using IRS 433-A

Completing the IRS 433-A form is an essential step in communicating your financial situation to the IRS. Starting with accurate information will allow you to present your case more effectively. Follow these steps to ensure the form is filled out correctly.

Begin by downloading the IRS 433-A form from the official IRS website or obtain a paper copy.
Fill in your personal information at the top of the form, including your name, address, phone number, and Social Security number.
In Section 1, provide details about your employment, including your employer's name and address, your job title, and the date you started your job. If you're self-employed, document your business name and type of business.
Move on to Section 2, where you'll list your monthly income, including wages, bonuses, commissions, and any other sources of income. Be sure to calculate the total amount for each category.
In Section 3, outline your monthly expenses. List necessary household expenses such as rent or mortgage, utilities, food, and insurance. Make sure to provide accurate estimates to create a realistic picture of your financial situation.
Next, Section 4 requires you to note any assets you may have, including cash, bank accounts, retirement accounts, real estate, and vehicles. Provide current values to ensure transparency.
In Section 5, indicate any liabilities, including loans, credit card debt, or other financial obligations. Be thorough to avoid overlooking any debts.
Finally, review the entire form for completeness and accuracy. Double-check all calculations and ensure that each section is filled out properly. Sign and date the form before submission.

Get Answers on IRS 433-A

What is the IRS 433-A form?

The IRS 433-A form is a financial statement used by individuals to provide the Internal Revenue Service (IRS) with a detailed overview of their financial situation. This form is most often required during tax collection processes, such as when applying for an installment agreement or currently not collectible status. It assists the IRS in determining a taxpayer's ability to pay and settling delinquent tax debts.

When should I use the IRS 433-A form?

You should use the IRS 433-A form if you owe back taxes and need to communicate your financial status to the IRS. This form is specifically necessary in cases such as:

Requesting an installment agreement to pay off your tax debt over time.
Applying for currently not collectible status, indicating that you cannot afford to pay your tax debts.
Negotiating an offer in compromise, where you propose to settle your tax debt for less than you owe.

What information do I need to provide on the form?

The IRS 433-A form requires comprehensive information about your finances, including:

Your personal information, including name, address, and Social Security number.
Details about your income, including wages, self-employment income, and other sources.
Your monthly expenses, such as housing costs, utilities, transportation, and living expenses.
Information on your assets, including real estate, bank accounts, and retirement accounts.

Providing accurate and complete information is crucial, as any discrepancies may delay processing your request.

How do I submit the IRS 433-A form?

You can submit the IRS 433-A form in several ways. One common method is to send it by mail along with any other supporting documents required. If you are working with a tax professional, they may submit the form on your behalf. Alternatively, the IRS may allow electronic submissions for certain cases, but you should verify this based on your unique situation. Always keep a copy of your completed form for your records.

What happens after I submit the IRS 433-A form?

After submitting the IRS 433-A form, the IRS will review your financial information. Depending on the complexity of your situation, this may take some time. You may be contacted for additional information or clarification. If approved for an installment agreement or currently not collectible status, you will receive written notification outlining the terms. If your request is denied, the IRS will provide an explanation and may offer alternatives for resolving your tax debt.

Common mistakes

Completing the IRS 433-A form can present challenges for many individuals. One common mistake is failing to provide complete and accurate information regarding income and expenses. Often, people overlook minor streams of income or fail to list all monthly expenses comprehensively. It is essential to include all sources of income, even if they seem insignificant. Incomplete information can lead to delays or complications in processing the form.

Another frequent error is incorrect valuation of assets. Individuals may not accurately assess the fair market value of assets they own. For instance, undervaluing property or vehicles can significantly impact the outcome of the form. The IRS uses this information to evaluate an individual's financial situation. As a result, accurately appraising assets is critical to avoid misunderstandings with the IRS.

Many people also struggle with providing necessary documentation. The IRS may require supporting documents to validate the information submitted on the 433-A. Missing documents, such as pay stubs, bank statements, or tax returns, can stall the process. Ensuring that all required documentation is attached to the form prevents unnecessary requests for additional information, expediting approval.

Lastly, individuals often forget to sign and date the form. This may seem like a minor oversight, but an unsigned form can render it invalid. The IRS requires a signature to acknowledge that the information provided is true and accurate to the best of the individual’s knowledge. By ensuring the form is signed and properly dated, individuals can avoid delays in processing their submission.

Documents used along the form

The IRS 433-A form plays a critical role in resolving taxpayer issues, particularly in cases of financial hardship or when negotiating payment plans with the IRS. Several other documents often accompany this form, helping to provide a comprehensive overview of an individual’s financial situation. Below is a list of essential forms and documents to consider.

Form 1040: This is the standard IRS form used by individual taxpayers to file their annual income tax returns. It provides details on income, deductions, and tax credits.
Form W-2: Employers provide this form to their employees. It summarizes annual wages and the amount of taxes withheld from paychecks, serving as crucial income verification.
Form 1099: Various types of this form report income received from sources other than employment, such as freelance work or investment income. It helps the IRS track non-wage income.
Bank Statements: Recent bank statements can demonstrate an individual’s cash flow, expenses, and overall financial health. They are vital for assessing the ability to pay taxes owed.
Pay Stubs: Recent pay stubs indicate a taxpayer’s income on a regular basis. They can provide more up-to-date financial data than the annual tax return.
Proof of Expenses: Documentation such as receipts or bills can demonstrate necessary living expenses. This information can impact the IRS's understanding of a taxpayer's financial situation.
Current Financial Statement: This is often a simple summary of assets and liabilities, helping to outline a person’s financial standing effectively and inform IRS negotiations.

Gathering these documents can be a straightforward yet important process. Each piece of information contributes significantly to the context of the IRS 433-A form, helping to ensure a thorough review of your financial situation.

Similar forms

The IRS Form 433-A is essential for taxpayers seeking to resolve their tax debts through various programs. It helps the IRS assess an individual's financial situation. Several other documents serve similar purposes in helping agencies or organizations understand a person's financial condition. Here are ten documents that are comparable to Form 433-A:

IRS Form 433-B: Similar to Form 433-A, this form is for businesses. It helps the IRS evaluate a business's financial needs and ability to pay tax liabilities.
IRS Form 9465: This form allows taxpayers to request an installment agreement. It focuses on a taxpayer's ability to pay over time, just like Form 433-A assesses overall finances.
IRS Form 2848: As a Power of Attorney form, this document allows someone to act on behalf of a taxpayer. It's essential when getting financial assistance or negotiating tax matters with the IRS.
Financial Statement Form (for banks): When applying for loans, individuals often submit financial statements, similar to Form 433-A, to show their financial status and ability to repay.
Loan Application Forms: When requesting a loan, applicants must provide comprehensive details about their income, expenses, and debts. This step mirrors the financial information asked for on Form 433-A.
Bankruptcy Petition Forms: Individuals filing for bankruptcy must detail their financial situation, including assets and liabilities, just like Form 433-A requires a detailed financial disclosure.
Property Tax Exemption Application: When applying for property tax exemptions, individuals often submit financial information to demonstrate need, akin to what is required on Form 433-A.
Credit Counseling Questionnaire: This document gathers a person’s financial information to provide a debt repayment plan, similar to how Form 433-A assesses a taxpayer’s circumstances.
Mortgage Application Forms: Home buyers must provide detailed financial information to lenders, resembling the detailed disclosures required by Form 433-A.
Income Verification Statements: These are often used in various financial applications to confirm income levels, paralleling the income disclosure portion of Form 433-A.

Understanding how these documents relate can help individuals comprehend the importance of financial disclosure in various contexts, especially when dealing with tax obligations.

Dos and Don'ts

When filling out the IRS Form 433-A, it's important to approach the task carefully. This form is essential for providing the IRS with information about your financial situation during an offer in compromise or other tax relief measures. Here are some dos and don'ts to consider:

Do: Read the instructions carefully before you begin. Understanding what information is required will save you time and prevent mistakes.
Do: Be honest and thorough in your disclosures. The IRS seeks accuracy to evaluate your financial health effectively.
Do: Include all relevant financial documents. This includes pay stubs, bank statements, and any other sources of income.
Do: Double-check your calculations to ensure that all numbers add up correctly. Errors can delay the processing of your form.

Don’t: Leave any sections blank unless the instructions specify it’s acceptable. Missing information can lead to complications.
Don’t: Provide inaccurate or misleading information. This can have serious consequences, including penalties.
Don’t: Forget to sign and date the form. An unsigned form can be rejected, delaying the review process.
Don’t: Rush through the form. Take your time to ensure everything is accurate and complete. Quality matters.

Misconceptions

The IRS 433-A form plays a crucial role in the income tax collection process, particularly for those who cannot pay their tax debts immediately. However, several misconceptions surround this form that can lead to confusion for taxpayers.

Misconception 1: The 433-A is only for high-income individuals.

Many believe that the IRS 433-A is reserved solely for high earners or those with significant assets. In reality, any taxpayer struggling to pay their tax liabilities, regardless of income level, may be required to complete this form to facilitate an installment agreement or offer in compromise.

Misconception 2: Completing the form guarantees a reduction in tax liability.

Filing the IRS 433-A does not automatically result in any relief from tax debts. Instead, it serves as a detailed financial disclosure, allowing the IRS to evaluate an individual's ability to pay and determine the appropriate course of action.

Misconception 3: The IRS does not review the information on the form.

This form is subject to thorough scrutiny by the IRS. The organization examines all submitted data, including income, expenses, and assets, to assess the taxpayer's financial situation before making decisions regarding payment plans or settlements.

Misconception 4: Only individuals need to file the form.

While many associate the 433-A with individual taxpayers, businesses may also need to complete this form. It applies to sole proprietorships and partnerships too, as they may face tax obligations that warrant similar considerations.

Misconception 5: Once submitted, the form can be ignored.

After submission, the IRS requires taxpayers to stay engaged. Ignoring correspondence or failing to comply with any requested documentation can lead to further penalties or complications, including potential enforcement actions.

Key takeaways

Purpose: The IRS 433-A form is used by individuals to provide financial information to the IRS when requesting a payment plan or to settle a tax debt.
Required Information: Complete information about assets, expenses, and income is necessary to give the IRS a clear picture of your financial situation.
Accuracy: Ensure all data is accurate. Incorrect or incomplete information can delay the processing of your request.
Documentation: Include supporting documents as requested. Proof of income, expenses, and assets can strengthen your case.
Submission: Submit the form as part of a larger IRS request, whether for an Offer in Compromise or an Installment Agreement.
Follow-Up: After submitting the form, be prepared to follow up with the IRS to address any questions or additional requests for information.
Seek Assistance: If needed, consider seeking guidance from a tax professional to navigate complex situations or to ensure the form is filled out correctly.