You can use Form 433-F, Collection Information Statement, to provide your financial information to the IRS. Your Collection Information Statement is needed to determine your eligibility for certain installment agreements, currently not collectible status, and other tax resolution options that the IRS has available based on your ability to pay.
These tax resolution options are generally only available to taxpayers who can’t afford to pay their taxes in full. The IRS will want detailed information about your finances before allowing you to negotiate a lower monthly payment amount or settle your taxes for less than you owe.
The IRS doesn’t require Form 433-F for all types of installment agreements. Taxpayers who qualify for a streamlined agreement don’t have to submit Form 433-F to have their payment plan accepted.
Your payment plan may require Form 433-F if any of the following situations apply:
Many taxpayers can request a payment plan without completing Form 433-F. Contact a tax professional if you aren’t sure whether you need to complete this form.
When determining your ability to pay, the IRS will give you a monthly allowance to spend on certain necessities. The IRS won’t try to collect amounts that you are using to cover these reasonable living expenses.
The IRS will compare your information to both local and national standards to determine your ability to repay your tax balance. The IRS uses national standards for the following categories of expenses:
The amounts for each category are based on the number of persons in your household, which should be the same as the number of dependents on your tax return.
The good news is that you are given the standard amount for each category and aren’t required to provide proof of what you spent. If you spent less than the monthly food allowance of $685 for two people, you’d still be allowed to claim the full allowance.
However, these allowances may also be less than your actual expenses in each category. You generally can’t claim your actual expenses unless you can show the IRS why the National Standards are inadequate in your case.
Local standards are used for housing, utilities, and transportation because these amounts can vary based on your location.
Form 433-F is the general Collection Information Statement. It is often used to determine eligibility for certain types of installment agreements or currently not collectible status. Form 433-F is used by the IRS to handle taxpayers that have fairly straightforward financial situations. 433-F is only two pages, while the 433-A is six pages.
Form 433-A is called the “Collection Information Statement for Wage Earners and Self-Employed Individuals”. Form 433-A is similar to the form 433-F but requires much more detailed information. This form is generally used by the IRS when they require more information to decide the taxpayer’s ability to pay. The IRS uses this form for individual taxpayers with more complex financial situations. It is often used to determine eligibility for installment agreements and uncollectible status. For Offer in Compromise agreements, the IRS requires form 433-A (OIC).
Form 433-B is called the “Collection Information Statement for Businesses”. IRS form 433-B is the required collection information statement for businesses. For businesses seeking an offer in compromise, the IRS requires form 433-B (OIC).
Form 433-A (OIC) is only used when submitting an Offer in Compromise. Form 433-A (OIC) is the form individuals, sole proprietorships, or single-member LLCs taxed as sole proprietorships before 2009 submit along with their Offer in Compromise application.
Form 433-B (OIC) is also used when submitting an Offer in Compromise but is for business entities such as corporations, partnerships, or LLCs.
Form 433-D is used for installment agreements. The taxpayer or professional won’t need to decide when to use this because a revenue officer initiates the use. The IRS uses this form in conjunction with IRS form 9465 (Installment agreement form)
Much of the information is similar on forms 433-A and 433-F. One of the main differences is that Form 433-A requests much more detailed financial information. The main difference between 433-A and 433-A (OIC) is that it provides calculations for an offer amount for an offer in compromise. The information requested in both are similar, but the IRS requires 433-A (OIC) for an offer in compromise application.
Form 433-B is different than the other forms because it only asks for information about business items, including business assets, income, and expenses. It also has a section to calculate your minimum offer amount.
Forms 433-A and 433-B also contain additional sections that require information the IRS needs before considering a settlement and a list of supporting documentation to include.
If you are unsure how to fill out this form properly, you should contact a tax professional for assistance and ensure you are pursuing the right type of tax resolution.
The top section of Form 433-F requires your personal information, including your name, address, and Social Security number. Be sure to include the correct number of dependents because this will be used to determine your allowable expenses.
Include the name, account number, account type, and current balance for any of the following accounts:
List all of your properties, including primary residences, vacation homes, and any other land or properties you own. Complete all of the boxes for each property, including purchase price, current value, the balance owed, and your current equity.
Use this section for vehicles, boats, tools, equipment, and other assets that don’t fit into the other categories. Include the current value, the balance owed, and the current equity.
List every credit card you have, your credit limit for each card, how much you owe, and your minimum monthly payment.
Complete this section if you own a business. Include all accounts receivables your business currently has in Section E1. List any business credit cards in Section E2.
If applicable, include information about your employer and your spouse’s employer. If you have more than one employer, attach an additional sheet. You may also attach a copy of a current pay stub instead of completing this section.
Include the monthly amount you receive for any of these types of non-wage income:
Each expense has a box to include your actual expenses and the IRS allowable expenses. The allowable expenses may be based on national and local standards. Visit the Collection Financial Standards page on the IRS website to determine the applicable standards for each category.
Convert all payments to their monthly amounts when completing this section. You may be required to provide proof of any expenses that exceed the allowable standards.
The office you submit your Form 433-F will depend on the reason you are submitting the form. If you are submitting it along with an installment agreement request, visit this page to determine where to send both forms.
The IRS may accept your request or ask you for more information after receiving your Collection Information Statement. If you need assistance completing Form 433-F or resolving your tax problems, contact a tax professional for assistance.