When and why you need Form 433‑F
Form 433‑F (Collection Information Statement) is used when the IRS requests a comprehensive financial snapshot to determine how much you can reasonably pay toward an outstanding tax debt. The form collects income, living expenses, assets, liabilities, and monthly cash flow. The IRS uses this data to decide whether to approve a standard installment agreement, a partial-payment installment agreement (PPIA), or to explore other collection options.
Not every taxpayer must file Form 433‑F. For example, many individuals who owe less than $50,000 may be eligible for an online or streamlined installment agreement without submitting a full 433‑F, but the IRS can still request it if they need more detail. When the IRS asks for substantiation of your financial situation — or when you request a PPIA — you should expect to complete Form 433‑F (IRS Form 433‑F PDF: https://www.irs.gov/pub/irs-pdf/f433f.pdf).
(Official IRS pages on installment agreements and payment plans provide current program rules: https://www.irs.gov/payments.)
What information Form 433‑F asks for
- Identity and contact information
- Gross and net monthly income (wages, self‑employment, benefits, rental income)
- Monthly living expenses (housing, utilities, transportation, medical, food, child care)
- Assets (bank accounts, retirement accounts, vehicles, real estate, investments)
- Monthly debt payments (credit cards, student loans, mortgage, car loans)
You should be prepared to attach supporting documents: pay stubs, bank statements, recent bills, court‑ordered payments, and documentation for irregular expenses (e.g., medical costs). The IRS will expect consistency between the numbers on Form 433‑F and the documents you provide.
How the IRS uses the information
The IRS applies nationally accepted expense standards for certain items (for example, transportation and food allowances) and will accept documented extraordinary expenses. For other categories it will use the amounts you provide. For collection officers, Form 433‑F provides the basis to calculate:
- A recommended monthly payment under a full‑pay installment agreement (to pay the tax balance in full within the collection statute period), or
- A negotiated monthly payment for a partial‑payment installment agreement (if full payment is not feasible), or
- Whether assets can be seized, or other collection remedies are required.
The IRS may compare your reported expenses to their collection financial standards (see IRS Collection Financial Standards at https://www.irs.gov/irm/part5/irm_5-19-500). If your living expenses exceed those standards, be ready to document the difference.
Step‑by‑step: How to complete and use Form 433‑F effectively
- Gather documents before you start. Collect two to three months of bank statements, recent pay stubs, a profit and loss statement (if self‑employed), mortgage or lease documents, insurance bills, and court orders.
- Use current figures. Report current monthly income and ordinary monthly expenses. If you have seasonal income, use a reasonable monthly average and attach a cover note explaining seasonal patterns.
- Be honest and complete. Omissions or understatements slow the process and can result in denial. The IRS checks third‑party data and will request clarifications.
- Explain unusual items. If you have high medical expenses or extraordinary dependent care, add a short explanation and attach bills or receipts.
- Consider professional help for complex cases. If you have sizable assets, self‑employment income, or need a PPIA, working with a CPA, enrolled agent, or tax attorney can improve presentation and negotiation.
In my experience as a tax practitioner, submitting a clean, well‑documented 433‑F shortens the review timeline. Collection officers are more likely to accept a reasonable monthly payment when the form and its attachments tell a consistent financial story.
Common scenarios and how 433‑F applies
- Simple individual owing under $50K: Many taxpayers use the IRS Online Payment Agreement tool and may not need a 433‑F. Still, the IRS can request it.
- Self‑employed taxpayer with fluctuating income: Form 433‑F allows you to explain business seasons and include a profit‑and‑loss summary to justify a lower monthly payment.
- Taxpayer seeking a PPIA: The IRS almost always requires a complete collection statement (Form 433‑F) and supporting documents to consider a partial‑payment agreement.
Supporting documentation checklist
- 2–3 recent pay stubs or copies of recent checks
- 2–3 months of bank statements for all accounts
- Recent mortgage/lease statement and property tax information
- Proof of recurring medical or childcare expenses
- Recent profit & loss for self‑employed individuals
- Vehicle registration and loan statements
Providing clear, labeled exhibits makes it easier for the IRS reviewer to verify your claims and reduces back‑and‑forth requests.
How to improve the odds of approval
- Choose direct debit when possible. A Direct Debit Installment Agreement (DDIA) typically reduces the chance of default and may reduce user fees; see our guide to Direct Debit Installment Agreements: https://finhelp.io/glossary/direct-debit-installment-agreement-ddia/.
- Keep current on tax filings and estimated tax payments. The IRS generally requires all returns to be filed before approving an installment agreement.
- Pay as much as you can up front. A larger down payment reduces interest and can make a proposal more acceptable.
- Be realistic with expenses. Inflating costs without documentation can lead to a harder review and possible penalties.
Related reading: Setting up an IRS installment agreement (step‑by‑step) — https://finhelp.io/glossary/setting-up-an-irs-installment-agreement/ and deciding between an installment agreement and other options — https://finhelp.io/glossary/installment-agreements-vs-offers-in-compromise-which-is-right-for-you/.
Timeline and IRS response expectations
After you submit a completed Form 433‑F with supporting documents, processing time varies. For straightforward cases it can be 30–60 days; more complex files or requests for additional documentation extend that window. Stay responsive: quickly answer IRS follow‑up requests and provide missing documents to avoid delays or notices of intent to levy.
Red flags and mistakes to avoid
- Missing documents. Do not submit a 433‑F without bank statements when asked — the IRS will turn down incomplete packages.
- Hiding income or transferring assets. Transferring assets to relatives or closing accounts before disclosure can lead to civil penalties or criminal exposure.
- Using outdated forms. Always use the current Form 433‑F from IRS.gov to avoid processing delays (https://www.irs.gov/pub/irs-pdf/f433f.pdf).
How Form 433‑F differs from other collection forms
- Form 433‑A: Used for individuals (often used with more detailed breakdowns for wage earners). 433‑A (Collection Information Statement for Wage Earners and Self‑Employed Individuals) is older and sometimes used for state collections.
- Form 433‑B: Used for businesses. If you represent a corporation or partnership, the IRS may request Form 433‑B.
In many modern IRS collection cases, 433‑F is the default general statement. If you are unsure which form you need, ask the collection officer or your tax advisor.
Frequently asked questions
Q: Do I have to file Form 433‑F to get an installment agreement?
A: Not always. Small balances may qualify for the IRS Online Payment Agreement without a 433‑F, but the IRS can request the form at any time to verify financial information, especially for partial‑payment plans.
Q: Will submitting Form 433‑F stop IRS collection actions?
A: Submitting the form starts a review, but it does not automatically stop collection activity. If your case is in active collections, a timely and complete submission often halts levies while the IRS reviews, but you should confirm status with the assigned revenue officer.
Q: Can I change the information after submission?
A: Yes. If your financial situation changes materially, notify the IRS and submit an updated Form 433‑F with supporting documents.
Final checklist before you send it
- Use the current Form 433‑F PDF from IRS.gov.
- Attach supporting documents, clearly labeled and referenced in the form.
- Include a cover letter summarizing your request and contact information.
- Decide whether to request direct debit (DDIA) — it usually improves approval odds.
- Keep copies of everything you send and record dates and IRS contact names.
Disclaimer
This article is educational and does not replace personalized tax advice. Complex cases (large balances, significant assets, or potential criminal exposure) should be handled by a licensed tax professional such as a CPA, enrolled agent, or tax attorney. For official guidance and the latest forms, consult the IRS website (https://www.irs.gov).
Sources and further reading
- IRS Form 433‑F, Collection Information Statement: https://www.irs.gov/pub/irs-pdf/f433f.pdf
- IRS — Payment Plans, Installment Agreements: https://www.irs.gov/payments
- IRS Collection Financial Standards (Internal Revenue Manual references): https://www.irs.gov/irm/part5/irm_5-19-500