Overview

When you ask the IRS for a collection review—whether to set up an installment agreement, request a partial‑payment plan, or submit an Offer in Compromise—the IRS uses submitted documents to judge your realistic ability to pay. Providing clear, accurate, and current documentation speeds the process and improves your chances of an affordable outcome.

Core documents the IRS commonly requests

  • Completed IRS collection statement(s):

  • Form 433‑F, Collection Information Statement (individuals) — a streamlined financial statement the IRS uses to calculate monthly payment ability (see IRS Form 433‑F). (https://www.irs.gov/forms‑pubs/about‑form‑433‑f)

  • Form 433‑B, Collection Information Statement for Businesses — for business owners or entities. (https://www.irs.gov/forms‑pubs/about‑form‑433‑b)

  • If pursuing an Offer in Compromise (OIC), use the OIC worksheets and the specific 433‑series OIC versions (Form 433‑A(OIC) or 433‑B(OIC)) and Form 656. (https://www.irs.gov/individuals/offer‑in‑compromise)

  • Income verification:

  • Recent pay stubs (last 2–3 months) or a year‑to‑date statement for employees.

  • Profit & loss statements/bank deposits for self‑employed taxpayers (at least the most recent tax year plus current statements).

  • Social Security, pension, unemployment, and other benefit statements.

  • Expense documentation:

  • A monthly budget showing housing, utilities, food, transportation, medical and insurance, childcare, and secured debts.

  • Receipts or cancelled checks for unusually large or nonrecurring necessary expenses.

  • Asset and liability records:

  • Recent bank statements for all accounts (typically 3 months).

  • Mortgage statements, deeds, vehicle titles, appraisals or valuation support for real estate, and investment account statements.

  • Statements for outstanding loans, credit cards, and promissory notes.

  • Proof of filing and tax history:

  • Copies of filed tax returns for the years in question and proof of compliance with current filing requirements.

  • IRS notices or CP letters you received about the debt.

When each form is used (quick guide)

  • Form 433‑F: Default collection review tool for individuals; shorter than older 433 versions and focused on monthly ability to pay.
  • Form 433‑B: Used when business income or business expenses materially affect ability to pay.
  • Offer in Compromise package (Form 656 and 433‑series OIC worksheets): Required when asking the IRS to accept less than full tax liability; documentation expectations are higher and the IRS closely reviews assets and equity (see IRS OIC page). (https://www.irs.gov/individuals/offer‑in‑compromise)

Practical tips from practice

  • In my work helping clients with collection issues, the single biggest win is organized, dated documentation. Put income, expense, and asset records in chronological order and attach a one‑page summary that lists totals and explains unusual items.
  • Keep digital copies (PDF) and produce originals on request; the IRS accepts scanned files if legible.
  • Be conservative in expense reporting: claim necessary, recurring living costs and be ready to justify large or discretionary expenditures.

Common mistakes to avoid

  • Sending incomplete forms or leaving required fields blank — this causes delays and may prompt enforcement while waiting for a complete package.
  • Using inconsistent numbers across documents (for example, P&L that doesn’t match bank deposits).
  • Forgetting to include documentation for nonpayroll income (rental income, side gigs, royalties).

Timeline and what to expect

  • Intake and initial review can take weeks; more complex cases (OICs or business reviews) may take months.
  • The IRS may request follow‑up documentation or an in‑person/telephone financial review.
  • If you don’t provide requested documentation, the IRS can proceed with liens, levies, or wage garnishments.

How the documents affect outcomes

  • The IRS calculates a taxpayer’s Reasonable Collection Potential (RCP) using documented income, allowed expenses, and asset equity. RCP determines whether an installment agreement, partial‑payment agreement, or OIC is feasible.
  • Accurate documentation often produces lower monthly payment requirements or reveals eligibility for hardship/low‑income options.

Next steps and resources

  • Start by downloading and completing the appropriate form: Form 433‑F (individuals) or Form 433‑B (businesses) from IRS.gov (links above).
  • If you plan to propose an Offer in Compromise, review the IRS OIC documentation checklist and the pre‑qualifier tools on the IRS site. (https://www.irs.gov/individuals/offer‑in‑compromise)

Related FinHelp resources

Authoritative sources

Professional disclaimer

This article is educational and does not replace personalized tax or legal advice. For case‑specific help, consult a licensed CPA, enrolled agent, or tax attorney.

If you want, I can provide a one‑page document checklist tailored to common scenarios (wage earner, self‑employed, or small business owner).