Statistics indicate that if you carry any tax debt, you likely carry a lot. The average tax debt in the US currently exceeds $16,849! While a big tax debt load shouldn’t cause you to panic, it should be a cause for concern and a sign that you need to take action.
One thing that you’ll need to do if you can’t pay off your debt in full immediately is to learn more about IRS Form 433.
Form 433 is actually three forms: Form 433 A, Form 433 F, and Form 433 B. Each serves a different purpose. If you’re in tax debt, then you’ll need to learn more about these forms sooner rather than later. Get all the details you need to know to remain on good terms with the IRS below.
Basics of Form 433
First things first. What exactly is Form 433? This important cluster of forms helps the IRS better understand your financial situation. Depending on the information you provide on these forms, you may qualify for different levels of tax relief. Your options depend on your financial status, but you might be eligible for a payment plan, reduced payments, or even suspended penalties.
If you need more information about the many tax relief solutions available for citizens in tax debt, then get in touch with our office.
What Is IRS Form 433 A Used For?
IRS Form 433 A is called the Collection Information Statement for Wage Earners and Self-Employed Individuals. You must complete it if you tell the IRS that you can’t pay your tax bill in full and you also claim to be self-employed. If an IRS Revenue Officer has been assigned to your case, then they’ll likely request this type of form first.
Here is what you’ll need to fill out:
- Personal information
- Employment information
- Financial information: trusts, estates, lawsuits, life insurance policies
- Asset information: real estate properties, bank accounts, vehicles, investments
- Details about the self-employed business
- All monthly income and expenses information
Keep in mind that filling out this form isn’t enough proof for the IRS. You’ll need to include documentation that backs up your statements.
Differences Between Form 433 A and Form 433 F?
The next form in this cluster is IRS Form 433 F, also called the Collection Information Statement. This form is very similar to the one described above, but Form 433 F is not exclusively for self-employed individuals.
You’ll put much of the same information on 433 F as 433 A. That includes your financial information, assets, any businesses you own, credit cards and balances, bank account information, employment information, and your living expenses.
What Is a 433 B Form?
Form 433 B comes into play when you own a business and your tax debt liability is tied to that business. If you own a business and an IRS Revenue Officer is assigned to your case, then you’ll likely need to fill out this form. It will ask for information about your business, your business personnel and contact information, other financial information, and business assets and liabilities. Further, you’ll need to provide the IRS with your business’s monthly income and expenses.
How Do I Fill Out IRS Form 433 A?
So, how do you fill out IRS form 433 A? You’ll want to navigate to the IRS website, find form 433 A, and then go through the form section by section. Make sure to have your documentation ready to ensure you input all the information correctly. Filing out your form could be a challenge, so don’t hesitate to reach out to a tax professional if you need help.
For more help, check out our free tax help resources.
How Do You Know Which Form to Use?
One of the most common tax problems is not understanding which IRS forms are applicable to your individual tax situation. If you know you’ll need a 433, you might still be unsure of which Form 433 to use.
If you have an IRS Revenue Officer assigned to your case, then they can direct you to which form they want you to fill out. Otherwise, it might be best to consult with a tax professional to determine which form you need.
Here is some general advice:
- If you’re self-employed: use Form 433 A
- If the tax debt is tied to a business: use Form 433 B
- If the above situations don’t apply: use IRS Form 433 F
Everyone’s tax situation is unique, though, so be sure to get specific advice for your unique tax situation.
What to Know Before Filing Out Form 433
Before you fill out Form 433, you need to know the possible results of the information you provide. If your financial information shows that you could have paid off your taxes, then you won’t get any leniency from the IRS. You also don’t want to discredit yourself by making a mistake on these important forms.
To ensure you fill out everything accurately, consider getting a tax professional to help.
Do You Need More Help With Your Taxes?
Now that you’ve read through this article, you better understand what IRS Form 433 is for and who should fill it out. Despite that, you might still have questions about which form you need to fill out, how to complete it accurately, or how to fill out other necessary IRS forms. If you’re currently struggling to figure out your taxes, then know that you don’t have to go at it alone.
Here at Tax Group Center, we pride ourselves on helping taxpayers like you solve common tax issues, find tax debt relief, and get in good standing with the IRS. Regardless of your personal tax situation, we can help. Our team comprises all kinds of tax experts, from CPAs to tax attorneys. We want to empower you to make good tax decisions moving forward.
Are you ready to get started? Contact our office directly at (800) 264-1869 to get in touch with our tax experts.