One of the key issues to resolving any tax matter are IRS Forms 433A , 433B, or 433F. What are these forms? Each is an IRS Collection Information Statement. It is your financial portfolio laid out to the IRS in their format, based on their allowable expenses. This document is so important because the IRS will use it to determine how much you can afford to pay them each month.
- Form 433-A Collection Information Statement for Wage Earners and Self-Employed Individuals
- Form 433-B Collection Information Statement for Businesses
- Form 433-F Collection Information Statement
How your financial portfolio is presented determines what the IRS will do to you
One look at the form and it seems harmless enough. You can take out an hour of your time and complete the form. You provide some of the supporting documentation to prove the numbers on that form. You submit the form hoping the IRS will accept repayment of a tax debt that you can live with.
But, then the IRS comes back and tells you that they think you can afford to pay them $1,500.00 a month! That is when you begin to sweat it out. "The IRS said I have to pay this amount, but how do I afford it? Didn’t they see that I don’t have any money to pay that amount?"
Where did the IRS get that number from?
You probably missed vital expenses that you have, and may have overstated your assests.
We may like to think that our home is worth 10 times more than what the reckless economy would actually value it at. We think we have personal assets that are valued at thousands of dollars. We forget to list the reason why our grocery bill is so expensive each month is that our child has an allergy which causes us to have to purchase expensive alternative food items. The IRS allows each taxpayer $60.00 per month for medical expenses. That’s great if you are healthy. But, what about those of us who have health issues or are on multiple medications?
We actually had to fight the IRS in one case to accept our client's cancer medication (that she needed to stay alive) as a valid expense! It's maddening.
This is where mistakes are made on the form and where the IRS gets the idea that you can pay more than you are able. The IRS sets a trap and far too many people fall right into it, thinking that getting competent tax help for their tax problems won't be worth it.
We have seen it before, clients who come in and say that they filled out the form themselves and got into some type of payment plan with the IRS. Since they couldn't afford the monthly payment, they eventually defaulted and were levied.
The collection statements are actually legal claims you are making to the IRS so they must be taken seriously. There is much more to IRS Form 433, whether 433A, 433B or 443F, than meets the eye. THESE ARE NOT TAX RETURNS, but rather documents that should be persuasive tools.
It is not just about how much you can pay the IRS. It is about you and your financial house. It’s about finally taking control over your money and your expenses. It’s about getting your life back.
Contact us for help. Call us at 888-727-8796 or email firstname.lastname@example.org.