Does the IRS want a 433F from you? Do not fall into that trap! Use caution.
Use caution before giving that 433F financial statement to the Internal Revenue Service.
Most taxpayers have no clue what they are doing when sending a 433F to the IRS.
I should know. I am a former IRS agent and collections officer with the IRS. I also was a teaching instructor with the IRS.
I felt sorry for taxpayers who walked in or called the IRS on there own. It was almost stealing candy from a baby. You are walking into a trap.
Why?
IRS is a collection agency. They are not here to help the taxpayer. The taxpayer has no idea what IRS is looking for and more importantly they have no standard to judge whether the IRS Agent in the office or on the telephone is acting in the best interest of the taxpayer.
The fact of the matter is very simple, the IRS Agent is only acting in the governments best interest.
What is the 433F going to tell the IRS?
Everything!
You are giving the IRS a road map of your financial life and possible levy and seizure sources. IRS has very strict requirements on how it will work and close cases. Everything the IRS does as far as the collection division is tied into assets and the national standard expenses.
Many taxpayers believe they are in a financial hardship or a payment candidate however when the national standards are applied, the taxpayer has a wake up call. They find themselves behind the 8 ball and making a large payment to the IRS because of the 433F.
Remember, the only thing the IRS is looking at is assets and income, your liabilities are of no concern to the IRS. Your 433F Financial Statement is their road map to your pocket book. Let a tax professional give the IRS your 433F.
The National Standards and the 433F.
IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. These Standards are effective on March 1, 2011 for purposes of federal tax administration only. Expense information for use in bankruptcy calculations can be found on the website for the U.S. TRUSTEE program
National Standards have been established for necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, miscellaneous, housing and utilities, medical, transportation and a handful of other items. Each taxpayer must fit into the IRS national standards. If you go over the IRS standard that is your loss. IRS does have certain exceptions to this rule and a good tax representative can help you through this problem.
IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. These Standards are effective on March 1, 2011 for purposes of federal tax administration only. Expense information for use in bankruptcy calculations can be found on the website for the U.S. Trustee Program.
If you owe the IRS money, talk to a tax professional first. The last thing you want to do is to turn over that 433F on your own.
Also as a footnote, any IRS 433F must be fully documented and IRS will require proof of any expense recorded on the form.
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