Form 433A – Collection Information Statements
Taxpayers who want to set up an installment payment plan, apply for an offer in compromise or be declared currently not collectable often are required to prepare and submit a Collection Information Statement otherwise known as a Form 433. The Form 433 comes in a number of different formats. The Form 433-A is utilized by local IRS offices and is often requested by Revenue Officers in collection cases. The Form 433-A is a very lengthy form that requires the taxpayer to provide information regarding their assets, income and expenses. The Form 433-F is utilized by Automated Collection Services. This form is a shorter, more streamlined version of the Form 433-A. There is also a Form 433-OIC, which is required when taxpayers file an application for an Offer in Compromise.
In all cases, the IRS wants the taxpayer to disclose all financial accounts and lines of credit, all real and personal property owned, credit card information, income and wage information and necessary living expense information. Taxpayers must sign under penalties of perjury that the information contained on the form is true, correct and complete. Since it is imperative that you fill out these forms correctly, you should be seek counsel from a qualified tax representative who understands how the information is used by the IRS.
You may not realize that the IRS has standard allowances for living expenses and if you include actual expenses that exceed the national standards you may not be entitled to take credit for them. You may not also realize that if you are setting up an installment payment plan, that the IRS will often expect you to make monthly payments in an amount equal to the difference between your income and expenses. This could become extremely problematic if you underestimate your monthly expenses.
If you owe money to the IRS, you should act quickly to secure an experienced attorney to represent you. Attorney Amanda Cruser is a former federal tax prosecutor who has been representing taxpayers before the IRS since 2004. She has assisted hundreds of clients in resolving their tax debts throughout the Denver metropolitan area. She is also a Certified Public Accountant (CPA).