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Form 433-F is a simpler version of Form 433-A, designed to provide the IRS with an understanding of your financial circumstances to assess the best strategy for resolving any tax debt. This form tends to be less complex than its counterparts.
Who should use Form 433-A? Form 433-A is used to obtain current financial information necessary for determining how a wage earner or self-employed individual can satisfy an outstanding tax liability. If you are an individual who is self-employed or has self- employment income.
The Allowable Living Expense (ALE) standards, or the Collection Financial Standards, are designed to account for basic living expenses. These standards determine reasonable living expenses based on geographic location, age, and the number of people in the household. These are the maximum allowable expenses.
Offers in Compromise (OIC) Filling out Form 433-A (technically, its a Form 433-A (OIC)) and providing accurate information about your finances can help verify whether this type of relief suits you. All required returns and any estimated payments made when applicable to qualify must have been filed prior.
Form 433-A (formally named Collection Information Statement for Wage Earners and Self-Employes Individuals) collects information about finances (including any debts and assets) used to decide how a wage earner or self-employed person can cover the owed tax liability.
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They include food, clothing, housekeeping supplies, personal care products, rent, mortgage payment, property taxes, renters insurance, homeowners insurance, HOA dues, electric and gas utilities, telephone expenses, water, fuel oil, and trash collection.
The following taxpayers may be required to complete the 433-A tax form: Individuals who owe income taxes as reported on IRS Form 1040. Individuals who must pay a Trust Fund Recovery Penalty. Individuals personally liable for a partnership liability.