As a former IRS Agent and former Instructor at the Regional Training Facility know that IRS Agents are trained to find blunders and misstated truths on the financial statements turned over to remedy all IRS collection cases.

These financial statements are the 433A used primarily by Revenue Officers out in the field at the local IRS office and the 433F used exclusively by the ASC Unit at the different IRS call centers.

The IRS Agent is first trained to look for inconsistencies on the  financial statement itself. The first question the Agent asks, does this  financial  statement make sense. Does the income and expenses tie in to the tax return and bank statements.   This is usually the first check completed by the reviewing Agent. If the tax return and bank deposits do not tie in, the Agent will want to rectify that situation immediately.

In may cases the IRS Agent finds there are to many expenses and not enough income, thus the possibility or looking for unreported income and the possibility of a referral to audit.

IRS is not concerned about any debt except that allowed by the National Standard Expenses. IRS could care less about other expenses you may have. If you are paying credit cards, tithing, loans to third parties or college tuition, IRS will generally never allow payments if it is not  allowed by and on the National Standard. You must become very familiar with the IRS National Standards before turning your financial statement over to the IRS.

So basically, IRS is mostly interested in income and assets. There eyes are fixed on what they can have out of those available assets.

IRS will everything in their power to take whatever they can out of income and assets so  extreme caution should be used when turning over financial statements to the IRS. I would never recommend any one turn over a financial statement to the IRS without a trained tax professional giving the thumbs up.

Also keep one last thing in mind, IRS will and can review all bank checks for the last 6 months to make sure your financial statement ties in directly to the bank statements.

Also be aware that the IRS will pull up credit reports to find out what month payments you may be making on credit cards. IRS will on some occasions use Google and Accuriant Search Engines to find out other sources of income and assets.

It is always my advice, to hire a tax professional to deal with the IRS. Also highly recommended use former IRS  Collection Agents trained in the art of tax resolution.