The Collection Information Statement, officially known as Form 433-F, is a streamlined IRS form used primarily by individuals to disclose their financial status when negotiating payment options for tax debts. Unlike its more detailed counterparts, Forms 433-A and 433-B, Form 433-F offers a simpler process for reporting essential financial information, making it easier and faster to complete.

When you owe back taxes, the IRS requires a full picture of your finances — not just what you can pay immediately. Form 433-F collects monthly income (including wages, Social Security, self-employment earnings), regular living expenses (housing, utilities, food, transportation), assets (bank accounts, vehicles, property), and debts (credit cards, loans). This comprehensive information lets IRS officers evaluate your true ability to repay your tax debt.

After submitting Form 433-F, an IRS agent reviews the data to determine the most appropriate resolution, such as an installment agreement (monthly payments over time) or an offer in compromise (a settlement for less than owed). For example, if your income frequently surpasses necessary expenses, the IRS will expect a higher monthly payment. Conversely, limited income and higher expenses may qualify you for more lenient terms.

Form 433-F is generally required for individual taxpayers involved in collection activities including liens, levies, or installment agreements. Self-employed individuals and small business owners also use this form to report personal financial data. While Form 433-F replaces more complex forms for many cases, in more complicated scenarios, Forms 433-A (for individuals) or 433-B (for businesses) may still be requested.

To fill out Form 433-F accurately:

  • Be thorough and truthful about all income, expenses, and assets. The IRS cross-checks submitted info, so omissions can cause delays or penalties.
  • Keep pay stubs, bank statements, bills, and loan documents handy.
  • Include all reasonable living expenses, such as insurance premiums, childcare, or medical costs.
  • If your financial situation changes significantly after submitting the form, notify the IRS promptly.
  • Consider consulting a tax professional or enrolled agent to assist with preparation and negotiation.

Common mistakes include underreporting expenses or forgetting assets, which can negatively impact your case. Also, some taxpayers mistakenly view the form as optional, but it is mandatory to proceed with most IRS payment arrangements.

For taxpayers negotiating an Offer in Compromise, Forms 433-A or 433-B may still apply, particularly when detailed financial disclosure is needed. More detail on these forms is available in our Form 433-A overview and Form 433-B explanation.

Real-world example:
Jenny owes $20,000 in back taxes. She reports $3,000 in monthly take-home pay and $2,800 of monthly living expenses, including rent, groceries, and car payments. She lists assets including $5,000 in savings and a fully paid car valued at $7,000. Based on this, the IRS may approve a $200 monthly installment plan, reflecting her tight budget but ability to contribute over time.

FAQs:

  • Is Form 433-F used for businesses? No, businesses typically use Form 433-B for detailed financial reporting.
  • Can I submit Form 433-F electronically? Generally, submissions are by mail or fax; tax professionals might have electronic submission capabilities.
  • How often must I update the form? Updates may be required annually or if your financial situation changes materially.
  • What if I don’t submit Form 433-F when asked? The IRS can reject payment plan requests and may proceed with collection enforcement, including levies or liens.

For official IRS guidance, visit IRS.gov’s Collection Financial Standards and Forms and their Offer in Compromise pages.

Accurate, honest disclosure on Form 433-F is vital to securing fair IRS tax debt solutions and avoiding enforcement actions. Understanding and completing this form correctly empowers taxpayers to find manageable payment options with the IRS.