Taxpayer’s Guide to IRS Form 433-F

form 433-f

If you’re grappling with a Trust Fund Recovery Penalty for unpaid employment taxes under $100,000, IRS Form 433-F is pivotal for proving your financial ability to the IRS. This form helps to establish whether individuals—particularly wage earners—can fulfill their tax obligations without causing financial distress.

In this guide, we’ll explore the details involved in filling out IRS Form 433F effectively, emphasizing its importance in tax compliance and providing clear strategies to tackle tax debts successfully.

What is the 433 F Form?

IRS Form 433-F, known as the Collection Information Statement, is a document used by the IRS to collect detailed personal information from taxpayers. This form helps the IRS assess your financial situation to determine how you can repay your tax debts. It is essential to fill out this form with your complete financial history before you contact the IRS Automated Collection System (ACS Unit) for any tax liability issues.

When Do You Need to File the 433 F Form?

You might need to file a 433 F Form with the IRS under certain conditions related to your tax situation. This form is a way to communicate your financial status to the tax authorities. You should file the 433-F Form if:

  • You have delinquent taxes (taxes owed to the IRS that remain unpaid after the due date)
  • You want to apply for uncollectible status, which allows you to remain compliant as a taxpayer without facing collections enforcement, in special circumstances
  • You are setting up a payment plan with the IRS for your tax dues
  • You have not addressed your delinquent tax liability, which may result in monetary penalties or other legal ramifications if not addressed

Where to Mail IRS Form 433-F?

You won’t meet in person with an ACS representative when submitting IRS Form 433-F. Instead, you need to mail it to the IRS at an address that depends on the state you live in. You can find the specific mailing address for your location on the IRS website at IRS.gov.

How to Complete IRS Form 433F?

Filling out the IRS 433F Form is an important task that lets you tell the IRS all about your financial situation. This might sound like a lot, but it’s important because it can affect your payment plans or any tax relief programs you might use.

Personal Information

  • Enter your full name and address. If it’s different from the address on your last tax return, check the box.
  • Include your Social Security Number (SSN) and, if applicable, your spouse’s SSN.
  • Write down your home, cell, and work telephone numbers, and your spouse’s if relevant.

Household Information

  • Mention the number of people in your household and how many dependents you can claim on your tax return.
  • If you or your spouse are self-employed, provide the business name, Employer Identification Number (EIN), the business type, and number of employees.

Accounts/Lines of Credit

  • Personal Bank Accounts
    • List every bank account you have, including checking, savings, and online accounts (like PayPal).
    • Include the name and address of the financial institution where each account is held.
    • Provide the account numbers and the type of each account (e.g., checking, savings).
    • State the current balance or value of each account.
    • Check the box to see if any of the accounts are associated with a business.
  • Investments
    • Detail all your investments, which may include certificates of deposit, retirement accounts (IRAs), stocks, bonds, mutual funds, and any other investment types.
    • Write the name and address of the institution holding each investment.
    • Include the account numbers and specify the type of investment for each.
    • Mention the current balance or value and check if it’s a business account.
  • Virtual Currency (Cryptocurrency)
    • List all the virtual currencies you own (such as Bitcoin, and Ethereum).
    • Include the type of virtual currency, the name of the digital wallet or exchange it’s held in, and the email address used for setting up the wallet or exchange.
    • Provide the location(s) of the wallet (mobile, online, or external hardware), and the current value of the currency in U.S. dollars.

Primary Residence and Other Real Estate

  • Describe each real estate property you own. This could be your home, vacation properties, timeshares, vacant land, or other types of real estate.
  • For each property, give a description (possibly the address), the county it’s in, and whether it’s your primary residence or another type of property.
  • List the monthly payment amount for each property.
  • State the year each property was purchased, the original purchase price, and if applicable, the year refinanced along with the refinancing amount.
  • Include the current value of each property, the amount still owed (balance), and the equity you have in each property.

Other Assets

Give information like a description, monthly payment, year purchased, final payment (mo/yr), current value balance, and owed equity for:

  • Vehicles
  • Life Insurance Policies
  • Valuable personal effects such as jewelry, art, and collectibles.
  • Other assets of value that you own include furniture, electronics, or other personal property with significant value.

Credit Cards

  • List all the credit cards you have, like Visa, MasterCard, and American Express.
  • For each card, provide the type, your credit limit, the current balance owed, and the minimum monthly payment required.

Business Information

  • Accounts Receivable: If you have a business, list any outstanding amounts owed to your business.
    • Write down the name and address of each debtor.
    • State the amount they owe to your business.
  • Credit Card Merchant Information: If your business accepts credit card payments, list the information related to these accounts.
    Include the type of credit card accepted, the issuing bank’s name and address, and your merchant account number.

Employment Information

  • Write down your current employer’s name and address.
  • If married, include your spouse’s employer’s name and address.
  • Indicate how often you and your spouse are paid: weekly, biweekly, semi-monthly, or monthly.
  • State the gross pay per period and taxes per pay period for both state and local taxes.

Non-Wage Household Income

Report any additional income you receive monthly outside of wages, such as:

  • Alimony received.
  • Child support income.
  • Social Security income.
  • Unemployment benefits.
  • Net rental income.
  • Interest/Dividends income.
  • Any other income like pensions, VA benefits, etc.

Monthly Necessary Living Expenses

  • Food/Personal Care
    • List your actual monthly expenses for food, housekeeping supplies, clothing, personal care products, and services, and any miscellaneous items.
    • The IRS has a standard allowable amount for these expenses based on family size; only fill in the total if you spend less than this amount.
  • Transportation
    • Enter the actual costs for transportation, including expenses for gas, insurance, vehicle licenses, parking, maintenance, and public transportation.
  • Housing & Utilities
    • Record your actual monthly housing expenses, such as rent or mortgage payments and utility costs including electricity, gas, water, trash, and services like telephone, cell, cable, and internet.
    • Include real estate taxes and insurance if not accounted for in mortgage payments, as well as any maintenance and repair costs.
  • Medical
    • Fill in the amount you spend each month on health insurance and out-of-pocket healthcare expenses.
  • Other
    • Child or dependent care costs.
    • Estimated tax payments if not withheld from your paycheck.
    • Term life insurance premiums.
    • Mandatory retirement contributions are required by your employer.
    • Voluntary retirement contributions.
    • Union dues.
    • Delinquent state and local taxes, with the minimum payment you’re making towards them.
    • Minimum monthly payments for student loans.
    • Court-ordered payments such as child support or alimony, and any other payments you are obligated to make.

Note: At the bottom, you must declare that the information provided is true to the best of your knowledge.

You (and your spouse, if applicable) will sign in the end, affirming the truthfulness of the information, and date the 433 F form.

Other IRS 433 Forms

When dealing with tax issues, the IRS has different forms that allow taxpayers to provide detailed information about their financial situation. Whether you’re an individual or a business, these forms play a vital role in setting up payment agreements or negotiating tax settlements. Here’s a rundown of the other IRS 433 forms you might encounter:

Form 433-A

This form is for individuals who earn a wage or are self-employed. It’s used to give the IRS a clear and full picture of your financial situation. You’ll need to provide details about your income, expenses, assets, and any debts you have.

Form 433-A (OIC)

This is a special version of Form 433-A. It’s used when you’re making an offer to the IRS to settle your tax bill for less than the total amount you owe, which is known as an Offer in Compromise. This form helps the IRS decide whether to accept your offer based on your financial situation.

Form 433-B

If you own a business, you’ll use this form to tell the IRS about the business’s finances. You’ll need to include information on things like your business income, expenses, bank accounts, assets, and any amounts you owe to others.

Form 433-B (OIC)

This form is for businesses that are proposing an Offer in Compromise. It’s similar to Form 433-A (OIC) but for businesses. The form collects detailed financial information so the IRS can determine whether to accept a business’s offer to settle tax debts for less than the owed amount.

Form 433-D

Individuals or businesses use this form when they need to make payments over time to settle their tax debt. It’s an agreement between you and the IRS that outlines how much you’ll pay each month.

Form 433-H

This form is also related to setting up a payment plan, but it includes more detailed financial information. It combines the request for an installment agreement with the financial disclosure aspect of Forms 433-A and 433-B, offering a more comprehensive view of your financial state to the IRS.

Get Help With IRS Form 433F

The IRS 433-F Form also serves as a crucial tool for self-employed individuals and wage earners who owe back taxes but have a total tax debt of less than $250,000.

By providing a detailed account of their financial standing, taxpayers can assist the IRS in determining the most feasible payment plans or collection methods. This strategic approach not only facilitates manageable tax resolution but also underscores the importance of accurate and comprehensive financial reporting.

If you need help, the Keith Jones Tax Relief option is here. With the IRS Form 433-F, his experienced team also offer services like IRS audit representation and back taxes help with optima tax relief. His team also has an IRS wage garnishment attorney who can help you deal with wage garnishments and secure the best possible outcomes for your tax issues.

Keith Jones

Founder | CPA, Tax Resolution Expert

Keith has found that almost every single person he deals with is not a tax cheat or deadbeat, but someone who is not able to pay their tax debt due to a financial hardship, often of their own accord. Usually, there is a sickness, tragic situation, job or business loss, or some other unfortunate circumstance that leaves them scared and not knowing where to turn.