Taxation & Estate Planning

Will Filing a Form 433-F Help You?

By Darrin Mish

An IRS Form 433-F is a short form filing instrument for a Collection Information Statement.  Form 433-F used to be only for instances where small dollar amounts were involved, but today it receives more wide-spread usage.  The IRS Automated Collection System (ACS) has begun using Form 433-F in circumstances where more than $100,000 is owed.  If you think filing Form 433-F will help you with your IRS problems, you should contact our office for IRS help.

A Collection Information Statement is used to determine your ability to pay your back taxes.  If you owe taxes to the IRS and you cannot find the resources to pay them all at the time they are due, you should pay as much as you possibly can.  Doing so will reduce the amount of interest and penalties you will incur.  You will need IRS help to explain your situation to the appropriate authorities and find the best resolution for you.  Form 433-F is a form that will allow the IRS to compare your monthly earnings versus your monthly expenditures to establish a monthly payment that will work in your situation.  Form 433-F will help document your finances and prove to the IRS why you may not be able to pay all the taxes you owe immediately.

One option to resolve payment of your taxes could include a monthly installment agreement (IA).  Typically, the IRS will want to directly debit the amount from your checking account or ask your employer to deduct the amount from your salary.  If your situation has put you in dire financial straights, you may even qualify for a temporary halt to your payments until you can get back on a solid footing.

The IRS will appear to work with you to find a payment structure you can meet, but you will need IRS help for this IRS problem. This is because they are not on your side when it comes to filling out the form correctly. Their job is to demonstrate that you have the highest possible ability to pay. Our job is quite the opposite. We help you to demonstrate that you have the lowest ability to pay.  We can help you if you contact one of our friendly professionals.

It might be important to note that Form 433-F cannot be used in conjunction with an Offer in Compromise.  An Offer in Compromise is a contract between the IRS and a taxpayer that resolves the tax liability in question.  The IRS has the ability to negotiate for a tax payment settlement under certain conditions.

You will need IRS help completing a Form 433-F and our staff will be pleased to assist you.  You need to make sure all information is accurately completed on this form when you sign it, because you could be prosecuted if the IRS discovers you have not been truthful when filling out this document.

Full post as published by IRS Problem Solver Blog on January 16, 2008 (boomark / email).