IRS Collection Financial Standards, 433 A & 433 F – Use Caution Before giving to the IRS
Do not be forced by the Internal Revenue Service in letting them dictate to you the standards that they set. There is much more to this than meets the eye. Contact us today if your have any problems or difficulties and above all use caution before giving IRS any financial statement.
If you are looking for the IRS form 433-a or 433-F simply go to the home page on our website and look for the top toolbar marked IRS forms. You will find both updated forms on our site.
The 433-A in the 433-F are the sole determining factors and criteria that IRS uses in determining where and how your case is going to settle.
IRS has options in closing your case. IRS may choose to place you into economic tax hardship,installment or payment arrangement, or a workout of tax debt settlement.
IRS must treat all taxpayers the same and therefore they have come up with national, regional, and geographical collection financial standards. So no matter where you live IRS will apply those financial standards to your case.
Being a former IRS agent and having reviewed thousands of IRS financial statements I would never advise any taxpayer to turn those financial statements without a professional tax review.
There are many trick questions on those forms and the professional tax consultant can keep you out of these traps or tricks used by the Internal Revenue Service.
The reason I say to use caution before preparing and giving to IRS is for the simple fact that you the taxpayer have no idea how IRS will treat to form, what they’re looking for, or the closing techniques they will use based on your financial statement.
Also know that that financial statement must be fully documented with copies of all bills and expenses, bank statements, and your last pay stub.
If you are having to fill out an IRS form 433-A or 433-F contact us today for a free initial consultation.
Collection Financial Standards
Disclaimer: IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes.
These Standards are effective on April 1, 2013 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 five necessary expense categories
National Standards have been established for five necessary expenses:
1.food,
2. housekeeping supplies,
3.apparel and services,
4.personal care products and
5. services, and miscellaneous.
The standards are derived from the Bureau of Labor Statistics (BLS) Consumer
Expenditure Survey (CES) and defined as follows:
Food includes food at home and food away from home. Food at home refers to the total expenditures for food from grocery stores or other food stores.
It excludes the purchase of nonfood items. Food away from home includes all meals and snacks, including tips, at fast-food, take-out, delivery and full-service restaurants, etc.
Housekeeping supplies includes laundry and cleaning supplies, stationery supplies, postage, delivery services, miscellaneous household products, and lawn and garden supplies.
Apparel and services includes clothing, footwear, material, patterns and notions for making clothes, alterations and repairs, clothing rental, clothing storage, dry cleaning and sent-out laundry, watches, jewelry and repairs to watches and jewelry.
Personal care products and services includes products for the hair, oral hygiene products, shaving needs, cosmetics and bath products, electric personal care appliances, and other personal care products.
The miscellaneous allowance is for expenses taxpayers may incur that are not included in any other allowable living expense items, or for any portion of expenses that exceed the Collection Financial Standards and are not allowed under a deviation.
Taxpayers can use the miscellaneous allowance to pay for expenses that exceed the standards, or for other expenses such as credit card payments, bank fees and charges, reading material and school supplies.
Taxpayers are allowed the total National Standards amount monthly for their family size, without questioning the amounts they actually spend.
If the amount claimed is more than the total allowed by the National Standards for food, housekeeping supplies, apparel and services, and personal care products and services, the taxpayer must provide documentation to substantiate those expenses are necessary living expenses.
Deviations from the standard amount are not allowed for miscellaneous expenses. Generally, the total number of persons allowed for National Standards should be the same as those allowed as exemptions on the taxpayer’s most recent year income tax return.
Other Collection Financial Standards
It should be noted that there are IRS collection financial standards for housing and utilities, for car payments, for operating car expenses, for medical and miscellaneous. See our website for more details.
IRS Collection Financial Standards, 433 A & 433 F – Use Caution Before Preparing & Giving to IRS
