Taxpayers can use Form 9465, Installment Agreement Request to request consideration for a monthly installment plan if they cannot pay the full amount shown on the tax return. Taxpayers making payments on a current installment agreement cannot use Form 9465.
The IRS uses Form 433-F, Collection Information Statement to obtain current financial information for a wage earner or self-employed individual to determine if the taxpayer can satisfy an outstanding liability. The form is divided into eight sections. Taxpayers are required to list all accounts and/or lines of credit and information pertaining to wage earning. The following represent an overview of the sections housed on the form.
Accounts and lines of credit also include reports of stocks and bond holdings. You must list all real estate you currently own and/or plan on purchasing. You will need the county description. “To determine equity, subtract the amount owed for each piece of real estate from its current market value” (IRS.gov, “Form 433-F, Collection Information Statement,” 8/19/2013). Other assets include the ownership of cars, boats, recreational vehicles; insurance policies; paintings, coin collection, or antiques; and business assets such as tools, equipment, inventory, and intangible assets such as domain names, patents, and copyrights. “To determine equity, subtract the amount owed from its current market value” (“Form 433-F”).
List all credit cards whether you have a balanced owed or not. In addition, you must list accounts receivables owed to your business as well as information about business credit cards. Section F requires that you include employment information. On the other hand, Section G requires that you list non-wage income. According to Form 433-F, non-wage income may include net self-employment income, net rental income, and other income reported as distributions from partnerships and subchapter S corporations. Other income also includes “agricultural subsidies, unemployment compensation, gambling income, oil credits, rent subsidies, Social Security and interest dividends, IRAs, and pension income” “(Form 433-F”). This list is not comprehensive.
Lastly, monthly necessary living expenses are those figures for housing and utilities, rent, transportation, public transportation, medical, health insurance, out-of-pocket health care expenses, child/dependent care, estimated tax payments, life insurance, delinquent state and local taxes, student loans, court ordered payments, and other expenses as determined acceptable by an IRS collections representative.
Our best stuff: secrets, tax saving tools, and tax defense strategies from the braintrust at Brotman Law.
These ten big ideas will change the way you think about your taxes and your business.
Find the articles and videos you need to make the right tax decisions in the learning center.
It is not just about what we do, but who we are, why we do it, and how that benefits you.
Meet with us to outline your strategy. No further obligation, 100% money-back guarantee.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, I must inform you that any U.S. federal tax advice contained in this website is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter contained in this website.