Whether you are a wage earner or self-employed, there are three relevant information collection statement forms titled as IRS Form 433A, IRS Form 433B, and IRS Form 433F. Their basic function is to relay your financial assortments in a particular structure to the IRS. From these collection documents, the IRS is able to determine how much you owe them (on a month-to-month basis). This, therefore, means that if you have any tax issue then you probably need to take a look at your IRS Forms 433A, 433B or 433F where relevant.

The IRS Form 433-A

The IRS Form 433A is also referred to as the “Collection Information Statement for Wage Earners and Self-Employed Individuals.” This form is used by individuals within the above-mentioned categories in instances where the wage earner or self-employed individual cannot pay their owed Federal Income Tax in full. By filling and filing the IRS Form 433A to the IRS, you give them the financial information pertaining to your current financial situation as the taxpayer.

You may be required to complete Form 433-A if you have requested tax relief from the IRS, such as an Offer in Compromise, a payment plan, or another resolution program. In these cases, the IRS may ask you to submit this form so they can gain a clear understanding of your ability to pay. The details you provide help the IRS assess your finances and determine what sort of arrangement, if any, can be made regarding your outstanding tax liability.

To complete this particular form, you are required to go through the following sections. Four of the sections stipulated below must be completed:

• Section 1, Personal Information- which entails an individual’s personal information such as their social security number, driver’s license number, date of birth among other things that would help the IRS contact and identify you.
• Section 2, Employment Information- which basically requires your employment information to help the IRS assess your current household income.
• Section 3, Other Financial Information- any other financial information such as impending lawsuits, trust funds or even insurance policies, which would be utile in helping the IRS know if you have any sources of assets or future income that would be used in paying your outstanding tax debt.
• Section 4, Personal Assets Information for all Individuals- this section entails information submitted to the IRS on any personal assets such as vehicles, bank accounts, real estate and so on. In this section documents such as paycheck stubs, bank statements, credit card statements, monthly living expenses documented and such as documentation is to be attached.
• Section 5 & 6, Business and Sole Proprietorship Information- this section is meant for self-employed  individuals. Here, information such as business assets and gross monthly business income or expenses are to be submitted.

The Importance of Disclosing All Assets on Form 433-A

It’s crucial to report all your assets—even those that might seem a bit out of the ordinary, like a rare coin collection, vintage guitars, or that piece of art you inherited from your great-aunt. The IRS wants an accurate snapshot of your financial health, and omitting something (even unintentionally) can set off alarm bells if they later discover its existence.

Not only does full disclosure help you avoid accusations of hiding assets or misrepresenting your financial picture, but it also ensures a smoother evaluation process. The IRS reviews a wide array of asset types, including those you may not instantly think of, so it’s wise to take stock and list everything accurately the first time around. This proactive approach prevents unnecessary headaches, delays, or potential penalties down the line.

What Happens After Submitting Form 433A?

Once you have submitted your completed Form 433A to the IRS, the process doesn’t end there. The IRS will carefully review all the details and attached documentation you’ve provided regarding your personal and, if applicable, business finances. Their main goal at this stage is to assess your true ability to pay your outstanding tax debt.

Depending on what they find, several outcomes are possible:

• Payment Arrangements: If your financial situation qualifies, the IRS may offer options such as an installment agreement or, in some cases, a partial payment plan to help you resolve your tax liability over time.
• Further Consideration: Sometimes, your application could lead to additional requests for supporting documents or clarification before a final determination is made.
• Next Steps: If you have the resources to pay the requested amount in full or through installments, you can proceed accordingly. Alternatively, if those options are not suitable, you may explore other avenues of tax relief.

Responding promptly to any further IRS inquiries following submission is important to keep your resolution moving forward.

Common Pitfalls: Inaccurate Statements and Asset Omissions

When completing IRS Form 433-A, it’s easy to make mistakes, especially given the required detail. Submitting inaccurate information, whether by accident or oversight, can have serious consequences. The IRS relies on the data you provide to gauge your ability to pay, so any inconsistencies or omissions could delay the process or invite further scrutiny.

One frequent misstep is forgetting to include certain assets, particularly those not at the front of mind. Items like an art collection, inherited jewelry, or even less obvious assets such as cryptocurrency or valuable collectibles can be overlooked. However, omitting these can raise red flags if the IRS discovers their existence down the line.

Be sure to carefully review each section of the form, double-checking that every asset—regardless of how unconventional—is accurately reported. An honest and thorough submission not only speeds up the resolution of your tax issue but also helps you avoid potential penalties for misrepresentation.

Complexity and Length of 433-A

One of the greatest hurdles with 433-A is its sheer complexity and the volume of information required. Gathering the necessary documents takes time and patience, especially if you’re already feeling the strain of dealing with tax debt. You’ll be expected to provide a detailed snapshot of your financial life, which means assembling items like current pay stubs, recent bank and credit card statements, proof of assets, and records of household expenses.

Tracking down every piece of documentation can feel like searching for all the ingredients in a complicated recipe, with each item critical to ensuring the IRS receives a complete picture. For many, the process quickly becomes overwhelming, as the level of detail demanded by the IRS leaves little room for error or omission. 

However, by tackling the paperwork methodically—perhaps collecting a few documents each day—you can break the process into manageable steps and set yourself up for a smoother experience.

Common Issues When Completing Form 433-A

Filling out IRS Form 433-A isn’t always as straightforward as it appears. Taxpayers often encounter several stumbling blocks during the process, so it’s wise to be aware of potential pitfalls before you begin.

1. Gathering Documentation

The most immediate hurdle is collecting all necessary documents. The IRS wants a clear snapshot of your financial standing, which means you’ll need recent pay stubs, bank statements, mortgage documents, vehicle records, and even the fair market values of your assets. 

Pulling these together feels like an elaborate scavenger hunt for many. It’s helpful to tackle a little at a time, as trying to amass everything in one go is both overwhelming and, frankly, a recipe for anxiety.

2. Risk of Errors and Omissions

Given the sheer volume of information required, it’s easy to make mistakes—misreporting figures, missing bank accounts, or typing a number incorrectly. Even a simple oversight, such as leaving out a small savings account or misreporting the value of a vehicle, can trigger delays or additional questions from the IRS. So, don’t rush. Take a methodical approach and review your entries section by section before submitting.

3. Forgetting Unusual Assets

Most people remember to include their main assets—bank accounts, cars, maybe a home—but not everyone remembers to account for items like valuable collections, investments in trusts, or even that long-forgotten boat slipped behind the garage. Everything of value, including jewelry, collectibles, or artwork, needs to be disclosed. Omitting such assets—whether intentional or accidental—invites scrutiny and possible complications down the line.

By preparing in advance and paying close attention to detail, you’ll give the IRS a complete and accurate picture, reducing the risk of setbacks.

Form 433-A: Approval and Denial Scenarios

The IRS uses Form 433-A to assess your financial situation, including income, expenses, and assets. This information helps determine whether you qualify for a Partial Payment Installment Agreement (PPIA) or other forms of tax relief. Here are a few scenarios that show what the IRS looks for during the review.

Scenario 1: When Approval Is More Likely

Consider a wage earner who fills out Form 433-A after finding that the standard IRS payment plan requires a monthly amount higher than they can realistically afford. Let’s say the individual earns $2,000 a month, receives a small amount in child support, and, after paying for essentials like housing, utilities, and food (all within the IRS’s allowable guidelines), is left with about $200 each month. Despite their best intentions, the minimum payment the IRS usually expects is out of reach.

Because the taxpayer’s monthly financial obligations leave little leftover, but they can consistently pay something, the IRS may be amenable to a partial payment plan, understanding that full payment is not feasible right now, but some regular payments are possible.

Scenario 2: When Approval Is Unlikely

Now, picture a different taxpayer with a similar income and family situation. On the surface, it looks like they’re in the same boat; however, a deeper look reveals they also own two cars with significant equity, and their home is nearly paid off, leaving substantial value (say, close to $200,000) untapped.

In this scenario, even if monthly cash flow is tight, the IRS will likely expect the taxpayer to leverage their assets—perhaps by selling a vehicle or using home equity—to address the tax debt before considering a compromise. Substantial available assets can make approval for a PPIA much less likely, regardless of current income or expenses.

These examples highlight the importance of not just reporting your income and debts, but also providing clear and thorough details about any available assets when completing Form 433-A. The IRS takes both present ability to pay and overall financial position into account.

The IRS Form 433B

This IRS Form 433B is a Collection Information Statement used for businesses that owe Federal taxes and cannot pay them as soon as they should. This allows the business to temporarily delay, get a compromise, or pay their due taxes in installments based on whatever challenges the business is facing at that particular point. To fill out the IRS Form 433B, information pertaining to the business’s financial situation that would be used by the IRS is needed to establish the business’s ability to fully pay its taxes.

To complete this form you are required to fill out the following five sections with the relevant information:

• Section 1, Business Information- this section requires you to fill in the primary information on the business. That includes; contact information, date of establishment, type of business, number of employees and even internet sales.
• Section 2, Business Personnel and Contacts- here, you are required to provide information on key individuals within the business. Individuals such as partners, board members or major shareholders. In providing this, personal information such as their telephone and social security numbers among others are to be submitted.
• Section 3, Other Financial Information- in this section any other financial data such as impending lawsuits, debts owed or even bankruptcy proceedings just to name a few are required by the IRS.
• Section 4, Business Asset and Liability Information- here, information on the business’s bank accounts, available credit, total cash in banks, vehicles among other assets and liabilities are to be submitted.
• Section 5, Monthly Income/ Expenses Statement for Business- in this section you are required to provide information on the business’s total monthly income and expenses during the period in which the IRS is to be allowed a payment plan, compromise or temporary delay by the IRS.

The IRS Form 433F

This IRS Form 433F is a Collection Information Statement used by the IRS to collect financial information on individuals with Federal tax debts. This information is used by the IRS in determining eligibility for payment plans or state of being non-collectable. The 433F form is usually used to apply for non-collectable status or payment plan for an owed tax debt.

In its structure, this form entails the following section;

• Top section- this section requires your personal information, which includes your contact information, social security number and even business name and number of employees if you own a business.
• Section A, Accounts/Lines of Credit- financial information such as bank accounts, lines of credit, mutual funds and so on are shared in this section where relevant.
• Section B, Real Estate- here, you are to provide a catalog of properties owned, such as primary residences, rentals, and vacation homes just to name a few examples.
• Section C, Other Assets- if you own any other assets such as cars, boats, and the likes, this is the section where you provide details about them.
• Section D, Credit Cards- list how many credit cards you own and how much you owe.
• Section E, Business Information- this section is meant for business owners where you are to provide details on business credit cards, bank accounts among other relevant information.
• Section F, Employment Information- in this section you are to share information on your employer if you have one.
• Section G, Non-Wage Household Income- if you have any other additional income sources such as alimony or child support, then this is the section is where you share that information.
• Section H, Monthly Necessary Living Expenses- this is the final part in which information on your monthly spending is shared. Here, your rent, amount spent on food, utility bills and so on becomes relevant.

The Difference Between the Forms

For these three forms, the difference is that the IRS Forms 433A and 433B are both six pages while the IRS Form 433F is two pages long. Also, the IRS Form 433A is for self-employed or wage earners while the IRS Form 433B is for businesses; the IRS Form 433F includes information for both the individual and their related business. Hopefully, now you can differentiate one form from the other based on the sections as clarified within this article.

Contact an Attorney

If you opwe more than $50,000 and want to set up an Installment Agreement or submit an Offer in Compromise your best bet is to contact a tax attorney to help you do so.  Contact us for a free case review and we’ll help you choose the best solution for your situation.