Form 433A by the IRS
When you owe money to the IRS, you have various means to repay your debt. But in order for the payments to be made smoothly and accurately, you have to tell the IRS what you really owe. This is done through Form 433A Collection Information Statement for Individuals. The information you provide in Form 433A will be the basis for the IRS to decide on their repayment agreement with you, whether it be accepting your offer in compromise (OIC), declaring your case uncollectible or formalizing an installment arrangement. Click here to read or watch more IRS Help resources.
For example, Form 433A is a standard form to fill if you are applying to make an offer in compromise. With the information on this form the IRS will perform its research and due-diligence into your case and decide whether to accept your offer.
Here is the information that is required of you in Form 433A:
In Section 1 of the form, you need to disclose your personal information. In Section 2, provide proof of earnings and deductions for the past 3 months from each employer. This may be in the form of pay stubs or earnings statements.
For Section 3, furnish proof of pension/Social Security/other income for the past 3 months for each payer and include and statements showing deductions. Section 4 is all about how much you make in terms of your investment income. So you should show copies of all your bank accounts (savings and checking), investment accounts such as stocks and bonds and life insurance policies. If you have used your insurance policies as collateral you should furnish details of your borrowing.
Section 5 is for you to provide any other details not explained fully in Sections 1 to 4. Section 6 requires you to declare your assets and liabilities. Assuming you have a vehicle that is under financing, you should include your current statement from your lender with your monthly vehicle payment amount and current balance of the loan for each vehicle purchased or leased. Likewise, include your current statement from your lender with your monthly house or other real estate payment amount and current balance for each piece of real estate owned.
Section 7 is about accounts receivables whereas the last section, Section 8 is an analysis of your monthly income and expenses.