In hot water with the IRS? Don’t panic. If you owe IRS back taxes, finding your way out of debt may not be as impossible as it seems. The United States federal government has created ways for taxpayers to resolve their outstanding obligations and clear their name from collections. Before figuring out which back tax resolution path to take, you’ll need to submit a Form 433 F to the IRS. There are a few differences between the various 433 forms and you have to file the right one in order to report your financial status. If you’re unsure how to file, or which form to file, we can help. Read on for IRS Form 433 F instructions and start taking steps towards your financial freedom.
What Is IRS Form 433-F?
The IRS Form 433 F Collection Information Sheet is one of the ways the government gathers your personal information to understand your financial status and your ability to pay back your tax debt. It reports your full financial history and will be a necessary step to take before calling the IRS Automated Collection Service (ACS Unit). If a local IRS collections Revenue Officer contacts you regarding your back tax, they’ll likely request a Form 433 A for personal taxes or 433 B for business taxes. Form 433 F, however, will be requested by the agents at ACS Unit. Revenue Officers are the highest level of IRS collection enforcement, and as such, will require the greatest amount of financial disclosures. Fortunately, the F version of the IRS Form 433 is a shorter and simpler way to report your information than its other variations; it has fewer questions, less pages, and is easier to fill out. Submit a Form 433 F to negotiate with the agents in the ACS call centers and receive a more affordable solution for your outstanding tax debt.
What are the Form 433 F National Standards?
“National Standards” (or IRS Collection Financial Standards) allow taxpayers with liabilities to claim a certain amount for necessary expenses based on national—versus local—averages. Report your 433 F National Standards to the IRS to better your chance at qualifying for tax relief programs; they’ll consider this number when deliberating your payment potential and reduce it from your amount of income. The government created five categories for 433 F national standards:
- Food (total expenditures for food from grocery stores, restaurants, etc.)
- Housekeeping supplies (laundry and cleaning supplies, postage, delivery services)
- Apparel and services (clothing, footwear, dry cleaning, jewelry)
- Personal care products and services (hair care, oral hygiene, cosmetics)
- Miscellaneous (credit card payments, bank fees, school supplies)
Taxpayers will be automatically allowed the total National Standards monthly amount according to their family size without questioning how much was actually spent. However, if you claim more than the 433 F National Standards, they’ll ask for supporting documents to substantiate those expenses. For example, as of 2017 a family of four could claim $1,650 but any upwards deviation would need to be proven.
What are the IRS Form 433 F Allowances?
In addition to the National Standards, 433 F allowances include out-of-pocket medical expenses such as prescription drugs and eye glasses. Your necessary living expenses will be calculated altogether when calculating your repayment of delinquent taxes. They’ll consider allowable expenses for the health and welfare of you and your family, the cost of living in your area, the size of your family, your monthly income, and any assets you might own. If you owe taxes and cannot pay, reporting 433 F allowances is absolutely critical. These numbers can be tricky to calculate, and it’s in your best interest to contact a tax professional who can get you the best repayment structure possible.
Where Do I Send IRS Form 433 F?
You’ll never meet face to face with an ACS representative, and will need to submit your document via mail to the IRS Form 433 mailing address. Your designated location is specific to the state in which you live, and you can find your assigned IRS Form 433 mailing address on their website at IRS.gov.
IRS Form 433 F Tips
To settle your case with the federal government, you’ll need to correctly fill out and submit the IRS Form 433 F. Any misreporting will delay the closing of your case, and could lead you to incur more penalties and late fees. We’ve compiled some essential tips to guide you through filing your IRS Form 433 F so you can feel more confident about your report.
- Complete every line, even the ones you don’t feel apply to you. Answer those questions with “none” or “not applicable (NA)” to avoid any miscommunication; any empty box will be considered a mistake on your part, not a deliberate pass.
- Include your necessary expenses. When you’re reporting your financial status, the IRS might determine you need to pay an exorbitant monthly rate toward your outstanding debt if you fail to report your allowances.
- Check to see if you’re able to establish an Online Payment Agreement prior to submitting an IRS Form 433 F. Keep in mind that this form essentially hands a pocket map of your financials over to the government, which could then be used against you in liens and levies. Setting up a payment system online can help protect your personal information.
Remember, the IRS Form 433 F will likely determine the fate of your case with the federal government. The agents at the ACS Unit will use the form to determine whether you’re able to pay your outstanding debt, and if so, will decide how you’ll pay it off. They may implement an Installment Agreement or label you with an uncollectible status. Hire the help of trusted professionals at Community Tax to ensure your best bet at receiving an affordable repayment structure. We’ll file the IRS Form 433 F on your behalf so you can sit back and rest easy knowing you’re on your way to clearing your name from the IRS radar and making progress towards settling your tax debt.