The IRS 433-F form is a financial statement used by taxpayers to provide the Internal Revenue Service with detailed information about their income, expenses, and assets. This form is typically required when individuals seek to resolve their tax liabilities through options such as an installment agreement or an offer in compromise. For assistance in filling out the form, please click the button below.
The IRS 433-F form plays a crucial role for individuals and businesses navigating their tax obligations. This form is primarily used to provide the IRS with a comprehensive overview of a taxpayer's financial situation, including income, expenses, assets, and liabilities. By detailing this information, the form aids in the evaluation of a taxpayer's ability to pay outstanding tax debts. Completing the IRS 433-F accurately is essential, as it can influence the outcome of payment plans or offers in compromise. It is important to note that the IRS may request this form during various tax-related processes, such as when a taxpayer seeks to negotiate a settlement or establish an installment agreement. Understanding the nuances of this form can empower taxpayers to communicate effectively with the IRS and potentially alleviate financial burdens. Proper preparation and honest disclosure of financial information are vital to achieving favorable resolutions in tax matters.
Form 433-F
Department of the Treasury - Internal Revenue Service
(July 2024)
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.)
DIGITAL ASSETS (CRYPTOCURRENCY) List all digital assets you own or in which you have a financial interest (e.g., Bitcoin, Ethereum, Litecoin, Ripple, etc.). (Use additional sheets if necessary.)
Type of Digital Currency
Name of Digital Assets Wallet,
Exchange or Digital Currency
Exchange (DCE)
Email Address Used to Set-up
With the Digital Currency
Exchange or DCE
Location(s) of Digital Assets (Mobile Wallet, Online, and/or External Hardware storage)
Digital Assets 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. 7-2024)
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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 digital assets 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)
National
Standards
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
Net Rental Income
Interest/Dividends Income
Child Support Income
Unemployment Income
Social Security Income
Net Self Employment Income
Pension 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
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 digital assets 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
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 Form 433-F is an important step in managing your tax situation. Once you have filled out the form, you will be able to submit it to the IRS to provide them with a clear picture of your financial situation. This information will help in negotiating a payment plan or settling your tax debt.
The IRS 433-F form is primarily used to provide the Internal Revenue Service (IRS) with a detailed overview of your financial situation. This form is often required when you are seeking a payment plan or an offer in compromise. By completing this form, you help the IRS understand your ability to pay your tax debt. It includes information about your income, expenses, assets, and liabilities, which helps the IRS determine an appropriate course of action regarding your tax obligations.
Individuals who owe taxes to the IRS and are looking for options to manage their tax debt may need to fill out the IRS 433-F form. This includes taxpayers who are applying for:
Essentially, if you find yourself in a situation where you cannot pay your tax bill in full, this form is a crucial part of the process to explore your options.
Filling out the IRS 433-F form requires careful attention to detail. Here are some key steps to follow:
Once completed, review the form to ensure accuracy. This will help the IRS make informed decisions about your financial situation.
After you submit the IRS 433-F form, the IRS will review the information you provided. They will assess your financial situation and determine your eligibility for various options to resolve your tax debt. This process may take some time, so it’s important to be patient. You might be contacted for additional information or clarification. Once a decision is made, the IRS will notify you of the outcome, including any payment plans or offers that have been approved or denied.
Failing to provide complete information. Many individuals leave sections blank or do not provide necessary details, which can delay the processing of their application.
Inaccurate income reporting. Some people underestimate or overestimate their monthly income, leading to discrepancies that can affect their tax situation.
Not including all assets. Individuals often forget to list certain assets, such as retirement accounts or real estate, which can impact their overall financial picture.
Omitting monthly expenses. Failing to accurately document all monthly expenses can result in an unrealistic view of financial capability.
Neglecting to sign and date the form. A common oversight is not providing a signature or date, which renders the form invalid.
Using outdated information. Some individuals submit forms with outdated financial information, which can lead to complications in negotiations with the IRS.
Not reviewing the form before submission. Skipping the review process can result in errors that could have been easily corrected.
Failing to keep a copy of the submitted form. Individuals should always retain a copy for their records, as it may be needed for future reference or inquiries.
The IRS Form 433-F is an important document used to provide the IRS with detailed financial information about an individual or business. This form is typically used when someone is applying for an installment agreement or requesting a compromise on their tax debt. Alongside this form, there are several other documents that may be required to support your application and provide a comprehensive view of your financial situation. Below is a list of common forms and documents that are often submitted with the IRS 433-F.
By preparing these documents along with the IRS Form 433-F, you can create a clearer picture of your financial circumstances. This comprehensive approach not only aids in your communication with the IRS but also increases the likelihood of a favorable outcome regarding your tax situation.
The IRS Form 433-A is similar to the 433-F form in that both are used to collect financial information from individuals. The 433-A form is specifically designed for individuals who are self-employed or have complex financial situations. It requires detailed information about income, expenses, assets, and liabilities. This form helps the IRS assess a taxpayer's ability to pay their tax debts and negotiate payment plans. While the 433-F is generally more straightforward, the 433-A provides a deeper look into an individual's financial status.
Another document that bears similarity to the IRS 433-F is the Form 433-B. This form is utilized for businesses and is aimed at business owners or self-employed individuals. Like the 433-F, it gathers essential financial data, but it focuses on the business's income, expenses, assets, and liabilities. The IRS uses this information to evaluate the financial health of the business and determine the owner’s ability to meet tax obligations. Both forms serve the purpose of providing the IRS with a clear picture of an individual's or business's financial situation.
The IRS Form 656 is also comparable to the 433-F form. This form is used to submit an Offer in Compromise, which allows taxpayers to settle their tax debts for less than the full amount owed. When submitting a Form 656, individuals must include a Form 433-F to provide the IRS with a detailed account of their financial situation. This connection highlights the importance of accurately reporting financial information, as it directly impacts the acceptance of an offer. Both forms are essential in negotiating tax liabilities with the IRS.
Lastly, the IRS Form 9465 is similar to the 433-F in that it is used to request a payment plan for tax debts. This form allows taxpayers to propose a monthly payment amount to the IRS based on their financial situation. When completing the 9465, individuals may need to reference information from the 433-F to demonstrate their ability to make the proposed payments. Both documents aim to facilitate a manageable resolution for taxpayers facing financial difficulties, ensuring that they can fulfill their tax obligations without undue hardship.
When filling out the IRS 433-F form, it’s important to approach the process with care. Here’s a list of things you should and shouldn’t do:
The IRS 433-F form is an important document for individuals dealing with tax issues, but several misconceptions can lead to confusion. Here are six common misunderstandings about this form:
Many believe that only those with significant tax debts need to file the IRS 433-F. In reality, anyone facing financial difficulties or looking to negotiate a payment plan may benefit from submitting this form.
Some think that completing the IRS 433-F automatically secures a payment plan. However, the IRS reviews each case individually, and approval is not guaranteed.
While the form may seem daunting, it is designed to be straightforward. Most taxpayers can complete it with careful attention to the instructions provided.
This form is often associated with individual taxpayers, but businesses can also use it when negotiating with the IRS regarding tax liabilities.
Some people believe that filing the IRS 433-F halts all IRS collection efforts. This is not true; it may delay actions, but it does not stop them entirely unless a formal agreement is reached.
Another misconception is that the information on the IRS 433-F is set in stone. Taxpayers can update their financial information if their situation changes, ensuring that the IRS has the most current data.
Understanding these misconceptions can help taxpayers navigate their financial obligations more effectively. Properly completing the IRS 433-F form can lead to better outcomes when dealing with tax liabilities.
The IRS 433-F form is essential for individuals seeking to resolve tax debts. Here are key takeaways to consider when filling out and using this form: