IRS Form 433-F: Collection Information Statement Instructions
Form 433-F (Collection Information Statement) is one of the forms the IRS uses to collect financial information from people with delinquent tax debt. The IRS uses the information on this form to determine eligibility for payment plans and uncollectible status.
When to Use Form 433-F (Collection Information Statement)
You can use Form 433-F when applying for uncollectible status. You can also use it when applying for a payment plan for your tax debt. Note that if you qualify to apply for a payment plan entirely online, you usually don’t have to fill out this form.
If you owe over $100,000 personally or over $25,000 for your business, the IRS may require you to complete this form. In addition, if you owe over $50,000 but you don’t want to set up direct debit for your payment plan, you may also need to complete this financial information statement.
The Differences Between Forms 433-A, B, and F
Form 433-A and 433-B are both six pages long, but Form 433-F is only two pages long. It’s much easier to complete. This IRS financial statement is a streamlined version of Form 433-A and Form 433-B.
Before 2017, the IRS usually required taxpayers to use Forms 433-A and 433-B. As of 2017, most taxpayers only need to complete Form 433-F. The IRS is trying to make the process easier for taxpayers.
Form 433-F Instructions
Form 433-F is relatively straightforward. These Form 433-F instructions go over each section and what you need to include.
The top of the collection information statement requires basic personal information. That includes your name, address, contact information, and Social Security Number as well as the same information about your spouse. If you’re a business owner, you need to include your business name, number of employees, and EIN (Employer Identification Number).
Section A: Accounts/Lines of Credit
Include information about your bank accounts and lines of credits as well as your IRA, 401(k), profit sharing plans, mutual funds, bonds, and related accounts. If applicable, include the same information about your business accounts.
Section B: Real Estate
List any property you own including your primary residence, vacation homes, rental properties, and even timeshares. Then, explain when you purchased each property, the price you paid, its current value, how much you owe, and the equity in each property.
Section C: Other Assets
This section is for you to share details about other assets you own. That applies to cars, boats, RV’s, whole life insurance, or anything else of significant value. If you have a business, also include similar details about your business assets such as equipment, inventory, and tools. For all assets, note when you purchased them, the final payment date, the balance owed, and the amount of equity.
Section D: Credit Cards
Simply, list all of your credit cards and how much you owe.
Section E: Business Information
You only have to fill out this short section if you are a business owner. List all of your accounts receivables (money clients owe you) in section E1. Then, provide details about your business credit cards and bank accounts in section E2.
Section F: Employment Information
If you have an employer, you should provide information about that in this section. Note all of your employers, your payment schedule, how much you get paid, and what gets taken out for taxes.
Section G: Non-Wage Household Income
This section is for additional money that comes into your home. It requests details about alimony, child support, unemployment payments, Social Security payments, and interest dividends. You should also include self-employment income and rental income.
Section H: Monthly Necessary Living Expenses
Use this part to show the IRS how much you spend each month. The form prompts you for information on your food, clothing, personal care, and transportation costs. It also needs information on rent, utility bills, insurance premiums, out-of-pocket medical expenses, and childcare costs. If you are making payments on delinquent state taxes or court-ordered child support or alimony, you can also include that.
How to Submit Form 433-F (Collection Information Statement)
Once you complete the financial information statement, sign it and send it to the IRS. If you are applying for a payment plan, also include Form 9465 (Installment Agreement Request) and a copy of your tax return. Don’t include any supporting documentation. The IRS will notify you if it wants to see those documents.
What to expect from the IRS When You Submit Form 433-F
After the IRS receives Form 433-F, it will decide if it can accept your payment plan proposal or not. If you are applying for uncollectible status, the IRS makes that determination. If you are labeled uncollectible, the IRS will stop all collection activity but may still issue a lien. Then, the IRS will reassess the situation at a later date.