The Form 433 seriesprovides the IRS financial information about a taxpayer who needs an IRS abilityto pay collection alternative (ability to pay installment agreement, currentlynot collectible status, or an offer in compromise).  The Form 433 series is also called the “CollectionInformation Statement” (CIS).  Thestatement provides detailed information to the IRS about income, expenses,assets, and liabilities.   The CIS alsoprovides the IRS more information about employment, banking, and businessoperations.   The IRS can use this information,with supporting documents to prove the items on the CIS, to determine how muchthe taxpayer can pay the IRS with assets and monthly disposable income.

Once the IRS has the CIS,they have sources of income and location of assets.  These sources could be potential levy sourcesif the IRS deems that the taxpayer is uncooperative or unresponsive andcollection enforcement is required.

The IRS has three differentForms 433.  Three of these forms are forindividual IRS collection agreements and two are for businesses.  Each form has the same purpose:  to supply the IRS information needed to makea collection determination.   However,the different forms apply to different types of taxpayers or situations.

Individual CollectionInformation Statements

  • Form433-A,  Collection Information Statementfor Wage Earners and Self-employed Individuals:  Form 433-A is the “long-form” CIS for individualsand individuals who report their small business on the Form 1040.  This form is normally requested in IRS fieldcollections situations (i.e. with a revenue officer).
  • Form 433-F,Collection Information Statement: Form 433-F is the most widely used CIS by individuals. Taxpayers using aForm 433-F usually make their income from wages or independent contractor income.  This form is only 2 pages -compared to the 6-pageForm 433-A.
  • Form 433-A(OIC),Collection Information Statement for Wage Earners and Self-employedIndividuals:  Form 433-A(OIC) is usedby individual taxpayers who are applying for an Offer in compromise.  This form allows the taxpayer and the IRS todetermine if the taxpayer qualifies for an OIC. If they qualify, the Form also allows the taxpayer to computer the offeramount.

Business Collection InformationStatements

  • Form433-B, Collection Information Statement for Businesses:  Form 433-B is used by business taxpayers whenrequesting an ability to pay agreement with the IRS.
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  • Form433-B(OIC), Collection Information Statement for Businesses:  Form 433-B(OIC) is used by business taxpayerswho are applying for an Offer in compromise to settle business liabilities.This form allows the taxpayer and the IRS to determine if the business qualifiesfor an OIC.  If the business qualifies,the Form also allows the taxpayer to computer the offer amount.

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