How to Use IRS Form 433-F for Financial Hardship
Learn how to present your complete financial picture to the IRS using Form 433-F to establish your capacity for paying a tax liability.
The Internal Revenue Service (IRS) uses Collection Information Statements to assess a taxpayer’s ability to pay an outstanding tax liability. Form 433-F is a simplified financial statement for this purpose. For more complex cases, the IRS may require a more detailed version, such as Form 433-A for individuals or Form 433-B for businesses. Filing the form formally demonstrates a financial hardship and is the basis for negotiating a resolution with the agency.
Information Needed to Complete Form 433-F
You must gather extensive financial documentation to complete Form 433-F. This includes providing personal details for yourself, your spouse, and any dependents, along with current employment information for both you and your spouse. The form requires a full disclosure of your assets, including:
- Bank accounts with the institution’s name, account number, and current balance
- Investments, such as stocks and bonds
- Real estate you own, including its fair market value and any outstanding loan balances
- Vehicles, including the make, model, year, current value, and loan information
The form also details your monthly income and expenses. You must report gross income from all sources, such as wages, self-employment earnings, and pension payments. This income figure is then weighed against your monthly living expenses, for which the IRS has established national and local standards.
You are required to list your actual monthly expenses for items like healthcare, child care, and court-ordered payments. The IRS will compare your stated expenses to their standards to determine your available disposable income. The agency may request documentation to substantiate the figures you provide.
Submitting Your Collection Information Statement to the IRS
Mail the completed Collection Information Statement to the address specified on the collection notice you received. Using the address from your specific notice is important to ensure it reaches the correct department. If your case has been assigned to a Revenue Officer, you will submit the form directly to them.
You must attach supporting documentation, such as copies of recent pay stubs, bank statements, and proof of your claimed monthly expenses. These documents serve as evidence for the financial data you have reported.
Before sending, you must sign and date the form under a penalty of perjury statement, which affirms that all information is true and correct. An incomplete or unsigned form will be rejected, causing delays in the review process.
IRS Review and Potential Resolutions
After receiving your form, the IRS will analyze your reported income, allowable expenses, and the equity in your assets. This analysis is used to calculate your ability to pay the tax debt and will dictate which collection alternatives you may be offered.
If your allowable expenses are equal to or greater than your monthly income, your account may be placed in Currently Not Collectible (CNC) status. This is a temporary resolution where the IRS pauses active collection efforts, such as levies. The agency will periodically re-evaluate your financial situation.
Should the review determine you have disposable income, the IRS may propose an Installment Agreement. This is a structured monthly payment plan that allows you to pay your tax debt over time. The payment amount is based on the financial ability calculated from your form.
The financial information gathered can also help determine if you are a candidate for an Offer in Compromise (OIC). An OIC is an agreement where the IRS accepts a lower amount than you originally owed. Formally applying for an OIC is a separate process that requires submitting Form 656.