IRS Form 433-A, the Collection Information Statement for Wage Earners and Self-Employed Individuals, is the financial disclosure the IRS uses to decide how much you can pay on a tax debt. It lists your income, expenses, assets and debts, is signed under penalty of perjury, and shapes whether you are offered a payment plan, a hardship pause or a settlement.
If a revenue officer or IRS letter has asked you to complete this form, call (415) 754-0115 to schedule your free consultation, or send us a message through the contact page before you submit anything.
When the IRS asks for Form 433-A
Not every taxpayer with a balance needs a full collection statement. Smaller balances can often be handled with a streamlined payment plan that requires little financial detail. The IRS typically asks for Form 433-A when:
- A revenue officer has been assigned to your account. Our article on what to expect when an IRS revenue officer is assigned explains that stage.
- You are requesting a non-streamlined or partial payment installment agreement.
- You are asking for currently not collectible status because of financial hardship.
- You are responding to a collection due process hearing that involves a collection alternative.
Which version applies
Several related forms are easy to confuse:
- Form 433-A is the detailed statement used by collection officers for individuals, including sole proprietors.
- Form 433-A (OIC) is a separate version used only with an offer in compromise, and it is part of the offer package.
- Form 433-F is a shorter statement often used by IRS phone and campus collection units.
- Form 433-B is the business version, used for corporations, partnerships and LLCs taxed as entities.
Using the wrong version, or an outdated revision, can delay the review.
What IRS Form 433-A asks you to disclose
The form is long because the IRS wants a complete picture of your household finances. Expect to report:
- Personal and household information, including dependents and whether others in the household contribute income.
- Employment and income, such as wages, self-employment receipts, rental income, pensions, Social Security and support received.
- Bank and investment accounts, including checking, savings, brokerage, cryptocurrency and retirement accounts.
- Real estate and vehicles, with current market value and loan balances.
- Other assets, such as life insurance cash value, business equipment and accounts receivable.
- Monthly living expenses, including housing, utilities, food, transportation, health care, court-ordered payments and current-year taxes.
How the IRS measures your expenses
The IRS does not simply accept what you spend. It compares your figures with its Collection Financial Standards, which set national amounts for items such as food and clothing and local amounts for housing and transportation that vary by county. Housing allowances in Alameda and Contra Costa Counties reflect local costs, but actual Bay Area rent or mortgage payments can still exceed them.
When actual expenses exceed the standards
The IRS may allow expenses above the standards in some situations, for example for necessary medical costs, or for a limited time when the balance can be paid within a set period or when a household needs time to adjust its spending. These requests generally need a clear explanation and documentation.
Documents to support the statement
Revenue officers usually verify what the form says. Common supporting documents include recent pay stubs, several months of bank statements for every account, mortgage or lease statements, vehicle loan statements, insurance policies, retirement account statements, and proof of child support, medical costs or child care. Self-employed taxpayers are often asked for profit and loss statements and business bank records.
Gathering these before you fill in the form helps keep the numbers consistent. A balance on the form that does not match a bank statement invites follow-up questions.
Common mistakes on the collection statement
- Leaving out an account or asset. Omissions on a form signed under penalty of perjury can cause serious problems and can undermine any agreement reached.
- Guessing at values. Overstating or understating a home or vehicle value affects the equity the IRS assigns to it.
- Forgetting allowable expenses. Current estimated tax payments, health insurance and court-ordered support are often overlooked.
- Submitting during a financial swing. A one-time bonus or a temporary drop in income can distort the picture if it is not explained.
- Missing the deadline. Revenue officers set due dates, and missed deadlines can lead to levies.
The Somal Law Firm, led by attorney Bob Somal in Pleasanton, helps Tri-Valley and East Bay taxpayers through IRS disputes. Through our tax law practice, an attorney can review your situation, check the statement against your records and present it to the IRS along with the collection alternative that fits.
How the IRS uses the numbers
Once the IRS accepts your income and allowable expenses, the difference is treated as your monthly ability to pay. That figure, along with equity in your assets, drives the outcome. A larger monthly figure may point toward an installment agreement, as described in our guide to the IRS installment agreement payment plan. No remaining income may support a hardship status. Limited income and limited equity together may support an offer in compromise.
The same statement can therefore lead to very different results depending on how carefully it is prepared and explained.
Frequently asked questions
Is Form 433-A the same as Form 433-A (OIC)?
No. They ask for similar information, but the OIC version is used only with an offer in compromise and follows the offer rules. The standard Form 433-A is used for other collection decisions.
Do I have to include my spouse's income?
The IRS generally asks about household income, even if your spouse does not owe the tax, because shared expenses are part of the calculation. How that income is treated depends on the circumstances.
What happens if I do not return IRS Form 433-A?
If a revenue officer requested it and the deadline passes, the IRS may move forward with enforced collection, such as levies, and a collection alternative becomes harder to arrange.
Does the FTB use a similar form?
The California Franchise Tax Board has its own financial statement forms for its payment and settlement programs. The figures should be consistent across both agencies.
A collection statement is often the most important document in an IRS case. To have it reviewed before it goes to the IRS, call (415) 754-0115 to schedule your free consultation with Bob Somal, or reach us through the contact page. We will look at your notices and records and explain the next steps.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.