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IRS Form 433-F – Be Careful Before Submitting The Form

IRS Form 433-F

IRS Form 433-F – What You Need To Know

If you are in a situation where money is owed for tax debts and you need to work out a payment plan or settlement offer with the IRS, a financial disclosure is going to be required. This financial disclosure don in the IRS Form 433-F, is essential for the IRS to complete its analysis on whether you have the ability to pay the amount owed in full, whether it can be paid now or over time, or whether another tax resolution option is available. To make matters worse, the IRS disclosure forms have been historically difficult to fill out and easy to make unfavorable errors when completing.

Why The IRS Form 433-F Is A Good Thing

There are actually five different Form 433s for various types of collection situations with the IRS. The benefits of the Form 433-F are multiple. First, it’s far shorter and easier to understand. At only two pages, the form is significantly easier to manage than similar documents that are six pages or more. Second, the streamlined form has far less questions to be answered to the IRS, which is a good thing. The more questions one has to answer, the higher the chance of an answer making things go sideways.

The Form 433-F is quite versatile and the IRS can use the form in any case where less than $250,000 is owned or $100,000 from a trust fund recovery. It’s commonly applied in cases where agreement has been reached for an automated payment from a paying account owned by the taxpayer and there’s no further communication needed. No surprise then, the form is heavily used by the IRS Automated Collection Service, which handles most claims electronically and by correspondence and is very short on in-person involvement or case management.

In-person reviews and audits are unlikely to rely on the IRS Form 433-F because most revenue officers know that their managers will reject the 433-F for alternatives forms that demand a greater scrutiny of information. This is consistent with the fact that people have already been assigned to the case and have spent time on the matter. If everything has been handled by computer and paper, the opposite is more likely to occur.

When the collection has ended the automatic payments end, unlike a tax lien where the tax filer needs to file a request for cessation or funds will continue to be seized and turned over to the IRS. In short, a resolution plan with an IRS Form 433-F can let a taxpayer get back to a normal life again.

Information Required For The IRS Form 433-F

Keep in mind the financial disclosure process is geared to determine whether and how much one can pay. That means a taxpayer will need to still disclose information on:

  • All personal bank accounts and investments accounts
  • Real estate holdings
  • Capital assets like cars, boats and large equipment
  • Credit card accounts
  • All business information if a partner to or owner of a business
  • Employment information
  • All sources of earned and passive income
  • Monthly living expenses

Based on the data provided, the IRS can decide what the taxpayer can afford to pay. The Form IRS 433-F is not a guarantee that an installment plan, currently non-collectible status, etc. will be approved or accepted. However, a tax resolution professional can ensure that the form is prepared accurately and completely and that it paints you in the most favorable light so as to increase the likelihood of acceptance of the proposed terms for resolution.

Rely on Expert Help For Preparing The IRS Form 433-F

If you are faced with the situation where you need to work out a plan with the IRS regarding a tax debt, don’t go at it alone. The IRS is under no obligation to help you fill out the forms to your benefit. However, Samaritan Tax Relief and their team of enrolled agents are specifically trained and dedicated to helping taxpayers resolve their debt issues in the best way possible. That includes critical expert guidance in filling out a financial disclosure and providing guidance on what the potential outcomes could be from the information collected. It’s a far better position to be in than filing the paperwork alone and wondering how the IRS will react.

At Samaritan Tax Relief, we put our clients first, providing them with superior service for a reasonable fee.

If you are ready to hire a qualified tax professional to handle your problems with the IRS, contact Samaritan Tax Relief today to get help with your IRS Form 433-F!

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Samaritan Tax Relief is a team of Enrolled Agents with over 25 years of experience focusing on US tax resolution services. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional to resolve their tax problem.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Samaritan Tax Relief that is an Enrolled Agent (America’s Tax Experts).

Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.

Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

Published by Randall Brody
Updated: November 5, 2016

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