IRS Form 433-F Explained
IRS Form 433-F, Collection Information Statement, is one of the tax forms that allows the IRS to analyze a taxpayer’s financial situation to determine their ability to pay their taxes owed to the IRS.
TABLE OF CONTENTS
- IRS Form 433-F, Collection Information Statement, is a document used by the IRS to gain a thorough understanding of the taxpayer’s ability to pay their tax liability and eligibility for a tax relief payment plan.
- Taxpayers who are applying for an installment agreement may be required to fill out IRS Form 433-F if their tax debt is more than $50,000, the highest amount the taxpayer can reasonably afford to pay each month in a payment plan will not result in the full debt being paid off in 72 months, or the taxpayer owes less than $50,000 but more than $25,000 in tax debt and they do not wish to set up their payment plan using direct debit.
- Depending on how taxpayers prefer to submit this form, it can be downloaded for free and filed online using e-file, or if they prefer, there are printable versions of this tax form that are filable through the mail.
What Is IRS Form 433 F?
IRS Form 433-F, Collection Information Statement, is a document used by the IRS to gain a thorough understanding of the taxpayer’s ability to pay their tax liability and eligibility for a tax relief payment plan. If the taxpayer is requesting payment plans to help them resolve their tax debts, they must also file IRS Form 9465, Installment Agreement Request, with IRS Form 433-F.
Who Is Required To File IRS Form 433-F?
The IRS may require taxpayers to fill out and submit tax form 433 F when they apply for an installment agreement to help them pay back their accumulated tax liability in monthly payments. There are different IRS forms that may be required when taxpayers apply for a payment plan, but here are instances in which IRS Form 433-F may be required:
- The taxpayer has an accumulated tax debt of over $50,000 for which they wish to set up a payment plan.
- The highest amount the taxpayer can reasonably afford to pay each month in a payment plan will not result in the full debt being paid off in 72 months.
- The taxpayer owes less than $50,000 but more than $25,000 in tax debt and they do not wish to set up their payment plan using direct debit.
How To Fill Out IRS Form 433-F
Before getting to the main sections of the downloadable form, the taxpayer must list all of their personal identification information, such as their name, Social Security number or Individual Taxpayer Identification Number, their spouse’s name and Social Security number or Individual Taxpayer Identification Number if they file jointly, their mailing address, all relevant cell phone, home phone, and work phone numbers, and the number of dependents in the household being claimed on their tax return who are both under and over the age of 65.
In the case that IRS Form 433-F is being filed for a business or if the taxpayer is self-employed, they will also need to include the name of the business, the business EIN, the type of business, and the number of employees (not including the business owner).
Part A: Accounts/ Lines of Credit
Within Part A of IRS Form 433-F, taxpayers must list all of their accounts and the current balance. Even if there is no current balance, the account must still be listed here. The accounts to be listed in this section include bank accounts, certificates of deposits (CDs), retirement accounts, profit-sharing plans, mutual funds, bonds, cryptocurrency, and related accounts.
Part B: Real Estate
In Part B of IRS Form 433-F, the taxpayer must list all of their real estate properties, including their primary residence, and provide details such as the monthly payment, year of purchase, purchase price, year of refinance (if applicable), and the amount refinanced. The taxpayer should note the current value of the property, the amount owed, and the equity in each property, which is the difference between the amount owed and the property’s value.
Part C: Other Assets
In Part C of Tax Form 433-F, taxpayers must provide details about their other assets, such as any cars, boats, and recreational vehicles, with the make, model, and year, and if the taxpayer leases a vehicle, they can write “lease” in the column titled “year purchased.” Individuals should also include assets such as antiques and whole life insurance policies with the name of the insurance company. If the taxpayer has any business assets, such as tools, equipment, and inventory, or intangible assets such as domain names, patents, and copyrights, they should be included in this section.
To determine the equity of an asset, individuals should subtract the amount owed from the current market value of each asset. If a question does not apply, they should enter N/A.
Part D: Credit Cards
In Part D, taxpayers must list all of their credit card information, including the minimum monthly payment, the credit limit for the card, and the balance on the account. If an account does not have a balance, it must still be included.
Part E: Business Information
If the taxpayer or their spouse is self-employed or a business owner, they must fill out Part E. In Section E1, taxpayers must include all Accounts Receivable, including federal, state, and local grants and contracts, that are owed to the taxpayer or their business. In Section E2, taxpayers must provide information about their business bank accounts and credit cards.
Part F: Employment Information
Section F is where employers who earn wages can fill out their payment information, including how long they have been working with their employer, how frequently they are paid, the taxes for each pay period, and the gross pay for each paycheck.
Part G: Non-Wage Household Income
Part G of IRS Form 433-F is where taxpayers can list any other household income that was not earned through regular wages. This could include self-employment income, rental income, agricultural subsidies, gambling income, rent subsidies, oil credits, and distributions from partnerships, subchapter S corporations, limited liability companies, and IRAs, if not included under Pension Income.
Part H: Monthly Necessary Living Expenses
Part H of IRS Form 433-H is where people can list their necessary monthly living expenses, including child or dependent care, estimated tax payments, life insurance, delinquent state, and local taxes, student loans, court-ordered payments, or other necessary expenses that were not included, such as housing, food, and utilities.
Where To Submit IRS Form 433-F
Depending on how taxpayers prefer to submit this form, it can be downloaded for free and filed online using e-file, or if they prefer, there are printable versions of this tax form that are fileable through the mail. To find the correct mailing address, refer to the instructions provided in a previous IRS notice.
If you have any questions about how to request tax relief from the IRS or need help filing your federal income tax return, the tax experts at Ideal Tax are here to help. We offer tax preparation & free tax consulting.