When a taxpayer does not pay the back taxes owed, the debt will accrue interest and penalties. The amount owed to the Internal Revenue Service will only increase, until steps are taken to remedy the tax problem. One way to help settle back taxes owed is through the IRS Form 433 payment plan.
IRS Form 433 gives the IRS information about the income, assets, debts, and obligations of the taxpayer. There are three types of Form 433; 433-A, 433-B, and form 433-F. Form 433-A is a lengthy document that goes in-depth into the taxpayers income, assets, debts, and obligations. 433-A requires a lot supporting documents to prove the taxpayers financial situation, and it is cumbersome to fill out. Form 433-B is only for businesses that are experiencing tax problems. Form 433-B will require information on the assets and debts of the company as a whole. Form 433-F is very similar to Form 433-A, but much shorter. It still requires information on the taxpayers’ assets, debts, expenses, and obligations, but is only two pages in length.
Our firm has currently been working on preparing Form 433-F for many of our clients. By using the Collection Information Statement, we are able to create tax payment plans that are affordable to our clients. Form 433-F is broken up into seven sections, and below will explain the information needed to accurately and completely prepare your form: