IRS Financial Statement 433A & 433F – Beware – Documents IRS will require U give them – Former IRS Agents
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Caution should be used before giving IRS any financial information. Unless you know exactly what you are doing you could encounter problems. I am not telling you this to scare you, should you have a simple situation it is thumbs up for resolving the tax situation yourself.
The information must always be accurate and the IRS can use this financial statement to collect back taxes. Also, this information can be used by the IRS to send out a bank levy or wage garnishment.
If any taxpayers owe back taxes to the IRS and cannot immediately set up a payment plan, the IRS requires a Financial Statement, 433A or 433F, IRS will expect that financial statement to be fully documented. You need to be very accurate filling out your financial statement.
Our link to the 433A and 433F http://freshstarttax.com/irs-forms/
For the record, the Service Centers require the 433F and the local IRS offices, the Revenue Officers, only work off the more detailed 433A. I was a former Revenue Officer.
IRS never believes the 433A or the 433F turned in by the taxpayer and will only process and close the case with a fully documented financial statement. Each time you put a amount down on the 433A with the exception of food and clothing, IRS will want to see the proof via a check and a bill.
The following is a checklist of each line item of expenses that the IRS may require.
1.IRS will verify and correct Form W-4. If not enough withholding is being taken out IRS will require a updated w-4 to ensure withholding is being fully taking out.
2.IRS will want at least 3-6 months banking statements to verifying bank deposits. This is used to verify income listed and check for unreported income.
3. IRS will also want to verify all expenses with a check as well as the bill to verify it is a expense of the taxpayers,
4. IRS will want to see your last pay stub,
5. If self employment income is involved the IRS will require or secure proof for at least 6 months of recorded income.
IRS will also request:
a.Invoices, bank statements, accounts receivable, commission statements, etc.
b.IRS will verify compliance with estimated tax payments and/or Federal Tax Deposit (FTD) payments.
Remember IRS cares only about two things, your income and your assets. They could care less about other outstanding liabilities because IRS comes first. If you have debt up to your eyeballs IRS will not allow expense credits for those items.
This is a common cord that must tie together in your financial statement is your income on your tax return, your deposits on your bank statements, your cost of living and the financial statement your are turning in to the IRS.
IRS Agents are trained to sniff out financial statement that simply do not make sense.
If you have unusually events that have happened in your financial life make sure you have the proper documentation to verify your claim.
I have reviewed some 15,000 financial statements over the years and it does not take a second to determine if a financial statement passes the IRS smell test.
If you are not sure about giving a financial statement to the IRS contact our offices today.
Warning.
Make sure you do not turn in a fraudulent statement to the IRS because all statements are signed under penalties of perjury.
Turn in a correct financial statement, it is not worth jail time.
IRS Financial Statement 433A & 433F – Beware – Documents IRS will require U give them – Former IRS Agents
