How to Document Hardship to Support a Partial Payment Plan

Why thorough documentation matters

When you ask the IRS for a Partial Payment Installment Agreement (PPIA), you are asking the agency to accept less than the full balance now and permit monthly payments based on your ability to pay. The IRS will evaluate your case using the Collection Information Statement (Form 433-F or, in certain cases, Form 433-A) and the agency’s Collection Financial Standards. Solid documentation helps the IRS verify your claims quickly and reduces the chance of denial or a request for more paperwork. (See IRS guidance on Form 433-F: https://www.irs.gov/forms-pubs/about-form-433-f)

In my 15 years as a CPA working with taxpayers in collections, the single biggest difference between a successful and unsuccessful application is organization. Cases with complete, verifiable backups are far more likely to get approved and to receive reasonable monthly terms.

What the IRS expects to see

The IRS typically looks for:

• A completed Collection Information Statement (Form 433-F or 433-A where applicable).
• Proof of current income and all sources of household income.
• Documentation of monthly living expenses and unavoidable debts.
• Evidence of extraordinary, non-recurring expenses (medical bills, casualty losses, etc.).
• Bank statements and loan/lease agreements that corroborate asset and liability claims.

Refer to the IRS Collection Financial Standards to understand how the IRS evaluates allowable living expenses: https://www.irs.gov/individuals/collection-financial-standards

Step-by-step documentation checklist

1. Identification and contact information

• Photo ID and Social Security number or ITIN.
• Current address, phone, and email.

1. Income documentation (last 3 months preferred)

• Recent pay stubs, unemployment award letters, Social Security/SSI benefits statements, child support receipts, rental income ledgers.
• If self-employed, business profit/loss statements, recent bank deposits, and a year-to-date profit estimate.

1. Expense documentation (last 3 months and recurring statements)

• Rent/mortgage statements, utility bills, insurance premiums, transportation (car payments, insurance, fuel) and child care costs.
• Healthcare: explanation of insurance coverage, medical bills, and payment plans.

1. Asset documentation

• Bank statements (3–6 months), retirement account statements, vehicle titles, and real estate documentation.

1. Debt documentation

• Credit card statements, student loan payment statements, collection notices from other creditors.

1. Event-based evidence

• Termination letters, divorce decree, eviction notices, hospital bills, repair invoices, or other documents proving sudden hardship.

1. A concise hardship statement

• One page that explains why you cannot pay in full now, how long the hardship is expected to last, and what you will be able to pay monthly. Include dates and attach supporting evidence. (A sample template is below.)

How to complete and submit Form 433-F (and when 433-A may apply)

• Form 433-F is the IRS’s standard Collection Information Statement for individuals and is often used to evaluate installment agreements, offers in compromise, and other collection alternatives. Some collection streams still use Form 433-A (Wage Earners and Self-Employed), especially in specific cases; check IRS instructions for which form to use. (IRS forms: https://www.irs.gov/forms-pubs)
• Fill the form carefully and attach the checklist items above. Double-check arithmetic and ensure bank account balances match your statements.
• Submit documentation via the secure portal or fax number provided in IRS correspondence, or mail to the address on the notice. If you are working with a tax professional, they can submit on your behalf using a valid Power of Attorney (Form 2848).

Sample hardship statement (one paragraph)

I, [Name], am unable to pay my federal income tax balance of $[amount] in full because of a loss of income and significant medical expenses. Since [month/year], my household income has dropped from $[previous monthly net] to $[current monthly net] due to [reason — e.g., job loss, reduced hours]. My monthly unavoidable expenses total $[amount] (rent/mortgage $[x], utilities $[x], medical $[x], transportation $[x]). I request a partial payment installment agreement and can reasonably commit to $[monthly offer] beginning on [date]. Attached are pay stubs, bank statements, medical bills, and a copy of my Form 433-F.

Common mistakes to avoid

• Submitting a vague or unsigned hardship statement.
• Omitting bank statements or providing only one month of records when the IRS requests 3–6 months.
• Listing inflated or unverifiable expenses (the IRS uses Collection Financial Standards to judge reasonableness).
• Failing to disclose all sources of income (social benefits, side gig income, rental income).
• Missing deadlines or failing to respond to IRS follow-up requests — that often leads to automatic denial.

What to expect after you submit

• Processing time varies. The IRS may respond in 30–90 days, but complex cases can take longer. The agent may ask for clarification or additional documentation.
• If approved, the IRS will issue terms for the partial payment plan and a monthly payment amount. Keep records of every payment.
• If denied, you will get a letter explaining the reason. You can appeal the decision; in some cases you can request Collection Due Process rights or contact the Taxpayer Advocate Service for help. (Taxpayer Advocate: https://taxpayeradvocate.irs.gov)

When to get professional help

If your finances are complex (self-employment, multiple properties, business debt) or if you receive a levy notice, consult a tax professional early. In my practice, engaging a CPA or an enrolled agent to prepare the Collection Information Statement and assemble supporting documents improves both speed and outcomes. Professionals can also help you evaluate alternatives such as an Offer in Compromise or currently not collectible status.

Alternatives and related topics

Partial payment plans are one option among several. You can learn how to set up a standard installment agreement and compare options in our guide: How to set up an IRS payment plan. For an overview of plan choices and eligibility rules, see our summary of IRS Payment Plan Options.

Professional tips to strengthen your request

• Use clear, dated captions on each document (e.g., “Bank statement March–May 2025”).
• Provide third-party proof where possible (medical provider statements, unemployment determination letters).
• If the hardship is temporary, provide a realistic timeline and a plan for how you’ll increase payments when circumstances improve.
• Keep a labeled folder or digital file copy of every submission and every IRS reply.

Final notes and disclaimer

This article explains the standard evidence the IRS expects when evaluating a request for a partial payment plan. It is educational and does not replace personalized tax advice. Rules and forms can change; always confirm current form requirements and submission addresses at the IRS website (https://www.irs.gov) or consult a qualified tax professional before filing. In urgent cases where collection actions are active, consider contacting the Taxpayer Advocate Service for case assistance: https://taxpayeradvocate.irs.gov.

If you need a tailored checklist for your situation, I can outline a customized list based on whether you are employed, self-employed, or receiving benefits — and on the type of hardship you’re documenting.