IRS Form 433: What you need to know

If you find yourself in a situation where you owe tax debt, you are not alone. According to statistics 11.23 million Americans owe a total of more than $125 billion in back taxes to the IRS. And this number is likely to grow. This is an issue that should not be ignored because the consequences are grave. You should take action as soon as possible.

One thing that you’ll need to do if you can’t pay off your debt in full immediately is to learn more about IRS Form 433. Form 433 is used to collect important financial information that the IRS will use to determine whether you can afford to pay your tax debt.

Form 433 is not only one form, it is actually 3 forms: Form 433 A, Form 433 F, and Form 433 B. Each one of these forms serves a different purpose.

What the IRS Considers for Your Payment Ability

The IRS will request certain financial information from you to determine if you are able to pay off your tax liability in full. This includes:

Any assets that you can take a loan against (e.g. house, other property, etc.)
Any asset such as your car, boat, or house that you can sell to pay the tax debt
Property that is yours but is held by someone else, including funds in bank accounts, retirement accounts, and trust funds

To gather this information, the IRS will ask you to send them a form, which could be Form 433-A, 433-B, or 433-F.

What is form 433?

These forms help the IRS better understand your financial situation. All information must be filled out correctly and honestly. Depending on the information you provide on these forms, you may qualify for different levels of tax relief. Your options depend on your financial situation, but you might be eligible for a payment plan, reduced payments, or even suspended penalties.

What is IRS Form 433 A?

The IRS Form 433 A is also called the Collection Information Statement for Wage Earners and Self-Employed individuals. This form must be completed if a taxpayer cannot pay off their tax debt in full. Form 433-A is six pages long and requires a good amount of information.This form includes, but is not limited to: Personal information, employment information, financial information, asset information, details about the self-employed business (if applicable), and all monthly income and expenses information. It is important that this form be filled out honestly as a taxpayer will be required to provide supporting documentation to the IRS.

What is IRS Form 433 F?

The IRS Form 433 F is also called the Collection Information Statement. Form 433-F is a simplified version of Form 433-A, with only two pages. There are fewer questions to answer. The information you’ll need to provide on Form 433-F is contact information and the taxpayers social security number.

What is IRS Form 433 B?

If you are a business owner who currently owes tax debt that is tied to the business, you will need to fill out Form 433 B. Much like Form 433-A, Form 433-B is six pages long and requires detailed accounts of your finances. You will need to include information about your business, your business personnel and contact information, other financial information, and business assets and liabilities. You will also need to provide the IRS with your business’s monthly income and expenses.

Which Form Should You Use?

Navigating the IRS website can be a difficult task. It is common not to know what IRS forms are applicable to your individual tax situation. It may be in your best interest to consult with a tax debt settlement company. At CuraDebt Tax, we can help you with all of your tax issues.

Documentation Matters

No matter which form the IRS needs from you, one thing’s for sure: they’ll need some serious documentation to support the financial information you provide. Although there is certain information they can verify internally using your previous tax returns, it’s still in your best interest to have proof of all the financial information you provided. Here at CuraDebt Tax we can tell you exactly what documents you will need and help you navigate through the stressful process of finding a resolution that works best for you based on your financial situation.

Do You Need More Help With Your Taxes?

Hopefully this article has given you a better understanding of IRS Form 433. Dealing with the IRS can be tricky, and you may still have some questions. If you are currently struggling to figure out your taxes, then know that you are not alone.

Here at CuraDebt Tax, we help taxpayers solve their tax issues on a daily basis. We help solve common tax issues, find tax debt relief, and help taxpayers get in good standing with the IRS. Whatever your personal tax situation is, we can help.