December 1, 2022 | Tax Debt | Tax Help
IRS Form 433-F Instructions and When to FileThe Internal Revenue Service uses IRS Form 433-F to gather detailed financial information about taxpayers who apply for certain tax relief programs. This form requires a financial information statement, and it helps the IRS decide if you qualify for non-traditional types of payment plans such as partial payment installment agreements and payment plans on high-balance tax bills.
If the IRS has requested that you fill out a 433-F form, this guide explains what you need to know. However, for best results, you should contact a tax attorney. To get help now, contact us at the Timothy S. Hart Law Group, P.C. today.
What Is Form 433-F Used for?
IRS Form 433-F (Collection Information Statement) describes your financial situation to the IRS. You may need to file this form in the following situations:
- Your tax debt owed is over $50,000, and you want to make an installment agreement request.
- You want to set up a payment plan but can’t afford the minimum monthly payment.
- You owe between $25,000 and $50,000 and want to set up a payment plan, but you don’t want to pay through direct debit or payroll deduction.
- You want to apply for a partial payment installment agreement. This is when you make payments until the tax debt expires, and then, the IRS settles the remaining balance.
- You want to apply for currently not collectible status. There is no specific form to apply for uncollectible status, but tax professionals often recommend using this form.
- The IRS requests the 433-F form from you.
The IRS uses the information on this form to determine if you qualify for certain types of payment plans or tax settlements. This form is similar to the forms you complete when you apply for an offer in compromise, but it is less detailed.
If you’re trying to set up arrangements on business taxes, you generally can only use the 433-F form if your business has closed down. If it’s still operating, you should speak with a tax professional.
IRS Form 443-F Instructions
The 433-F is relatively straightforward. The most important step is gathering all the financial details you need. Once you have that in order, you will be ready to work through the form. To fill out IRS Form 433-F, you need the following details:
- Bank names, account numbers, and current balance of all bank accounts, including checking, savings, and money market accounts.
- Institution name, account number, and balance on all investment accounts, including CDs, trusts, IRAs, 401(K)’s, mutual funds, stocks, bonds, life insurance policies, and any other investments.
- A list of all your virtual currency interests includes the type of virtual currency; the wallet or exchange; the email address you used to set up the account; and the currency’s fair market value.
- The purchase date, price, refinance dates and amounts, current value, balance, and equity of any real estate you own.
- A list of any other assets, including vehicles, tools, business inventory, art, and collectibles. Monthly payments, year of purchase, final payment date, current value, and balance owed on all other assets.
- Credit limit, balance owed, and minimum monthly payment on all credit cards. Note if any of the accounts are business credit cards.
- Employment information about you and your spouse, including pay periods, gross pay, taxes, and time with your current employer.
- Any additional non-wage household income such as alimony, child support, rental income, self-employment income, unemployment, Social Security income, etc.
- All of your monthly living expenses.
If you own a business, you will also have to include some business information. This includes the name, address, and amount owed on any accounts receivables for your business. You also must note your merchant account details if your business processes credit cards.
Keep all of this paperwork close by. You may need to send it to the IRS if the agency requests supporting documentation to back up the details on your form.
Form 433-F IRS Allowed Expenses
When you fill out the expenses portion of the 433-F form, you will notice that it asks for actual expenses and allowed expenses. If your expenses exceed the allowed amount in any category, you may need to provide additional information to the IRS. Keep reading for instructions on this part of the 433-F form.
The IRS allowed expenses refer to the amounts that the IRS believes people should be spending on their monthly necessary living expenses. If your actual monthly expense exceeds the allowable expense, you will have to explain why. A tax attorney can help you substantiate your expenses and convince the IRS that they are reasonable.
Collection Financial Standards
To find the IRS’s allowable expenses, you need to look at the Collection Financial Standards. There are national standards for food, clothing, out-of-pocket healthcare, and miscellaneous expenses. The IRS uses local numbers for housing, utility, and transportation costs.
The instructions for Form 433-F state that you should look up the Collection Financial Standards when you apply. Then, you should note them on the form next to your actual expenses as you fill it out.
Exceeding Allowed Expenses on Form 433-F
The IRS has fairly low financial standards, and it can be very hard for some taxpayers to get under these limits. For instance, as of 2022, the IRS says that a family of four should be spending $1,028 on food per month.
However, a family with dietary or health concerns may need to spend more than the standard amount. Similarly, a family with multiple teenagers may need to spend much more on food than a family with small toddlers.
Again, you will need to convince the IRS to accept expenses that exceed national standards. If the IRS thinks that you’re just blatantly overspending, the agency will be less likely to approve your application.
To put it simply, the IRS thinks that you should spend all of your extra monthly income on tax debt payments, not on luxuries. A tax lawyer can be critical at this juncture to explain that your expenses are necessary.
IRS Form 433-F Mailing Address
If you’re filing Form 433-F with Form 9465 (Installment Agreement Request), you should mail it to the address on the Form 9465 instructions. There are three different addresses depending on where you live. If you are submitting these forms along with an income tax return, there are four different addresses for people in this situation.
Be careful that you don’t mail Form 433-F to the wrong address. That can lead to unwanted delays or collection actions. If you aren’t sure where to send your form, check out the instructions for Form 9465 or contact a tax attorney or CPA to help you.
The form 433 series refers to all of the different IRS 433 forms. It includes the following:
- Form 433-A Collection Information Statement for Wage Earners and Self-Employed Individuals
- Form 433-A (OIC) Collection Information Statement for Wage Earners and Self-Employed Individuals
- Form 433-B Collection Information Statement for Businesses
- Form 433-B (OIC) Collection Information Statement for Businesses
- Form 433-D (Installment Agreement)
- Form 433-H (Installment Agreement Request and Collection Information Statement)
- Form 433-F Collection Information Statement
Aside from the 433-D, all of these forms request information about your personal and business assets, debts, income, and expenses. However, 433-F is shorter than the other collection information statements. It’s only two pages long, while the 433-A is eight pages, the 433-B is six pages, and the 433-D is three pages. All of these forms are also available in Spanish. Look for the form name as noted above followed by “SP”.
Get Help Filing IRS 433-F
Has the IRS requested that you file IRS Form 433-F (Collection Information Statement)? Do you want to learn about settling your tax debt through a partial payment installment agreement? Are you experiencing financial hardship? Then, contact us today.
We can help you determine if you need to file this form and guide you to the optimal tax relief program for your situation. Don’t wait to get help. Contact us at the Law Offices of Timothy S. Hart, P.C. today at either (917) 382-5142 or (518) 213-3445. We help taxpayers with a wide range of tax problems.