The IRS Financial Statement, the 433-A and 433-F ” is ” the most important factor in determining your financial future with the IRS.
IRS will determine the resolution of your case based completely on the forms and the documentation that goes along with the form.
If your case is assigned to the ASC Unit, that is the 1-800 groups, the IRS will require a 433F. The information the IRS requests is not as detailed. You will be faxing the information to a agent that can be located anywhere in the country. The IRS uses 1-800 switching centers to get your call to the first available agent. Calls can be taken up to 8:00 pm EST.
The 433A on the other hand is used exclusively by the local IRS offices and are used by local Revenue Officers. The local IRS agent will go into extensive detail in reviewing your 433A. Professional help is a must at this point.
Both forms, the 433A, and the 433F require complete documentation on any number that is placed on the form with the exception of food, clothing…….. IRS will follow the National Standards Test. For a comprehensive explanation of the National Standards call us directly.
The following is a list of tax tips to apply to the turning in of a IRS financial statement.
1. Without question, it is best to have a tax professional prepare and explain your financial statement to the IRS. Unless you have a very simply case I would not recommend you the taxpayer represent yourself when this form is required.
As a former IRS agent I would love it when the taxpayers were unrepresented. Taxpayers will believe anything the IRS agents says. Taxpayers are unaware that they have the right to Appeal the findings of the Agent working on there case. Many times taxpayers are hustled into situations. Taxpayers sign agreements in the pure fear of the IRS.
2. Be completely truthful. The normal IRS Agent is skilled to detect deception so whatever you do, tell nothing but the truth. IRS will match your bank statements, cost of living and your tax return to get a feel to make sure your financial statement is correct and accurate.
3. If any expenses are high you want to have a explanation of why expenses are out of the ordinary or normal range. Have documentation to support your expenses. Many times taxpayers can and will have excessive medical falling out of the National Standards.
Have detailed documentation available to prove your case. You want to have the bill and the receipt showing, PAID.
4. Understand that IRS will use the National Standards Tests. IRS has a National Standards Tests in every area of the country to apply towards expenses claimed on the 433A or 433F. The National Standards can be found on our site.
5. When the IRS asks for values for your assets use distrait values as if you had to sell the assets in an emergency situation.
Whatever you do, do not inflate the value of your assets.
6. IRS is only interested in two things, your assets and your expenses. Your other debt is of little interest to the IRS.Most of the time, IRS will not allow credit card debt, college tuition, taking care of grandma as a necessary expense.
7. Your financial statement MUST MAKE SENSE. Many times taxpayers expenses exceed their income. If this is your case you must supply documentation as to how you are paying your bills without have income to cover the expenses.
8. Make sure all your tax returns are filed. IRS will conduct a full compliance check and will not close your case until all tax returns are filed.
9. Make sure your withholding is up to date. Make sure to change your withholding or ES payments to make sure you will not owe tax in the current year.
10. Have a plan of resolution. Tell the IRS what you want and what you can afford. Do not be bullied by the IRS, you have right and can fight back.
Do not be afraid to be bold, there is an appeal process, however your request must be reasonable. To find out more appeal process call us today, 1-866-700-1040.
