IRS Form 433-A is a comprehensive financial disclosure document that taxpayers must complete when applying for certain types of relief from the IRS, such as an Installment Agreement, Offer in Compromise, or to be placed in Currently Not Collectible (CNC) status. This form requires taxpayers to provide detailed information about their income, expenses, assets, and liabilities so the IRS can assess their ability to pay their tax debt.
The form is divided into sections, including:
- Personal information: Name, Social Security Number, and contact details.
- Employment information: Current employer, wages, and other income sources.
- Self-employment income: If applicable, details about business income, profits, and expenses.
- Asset information: Bank accounts, real estate, vehicles, and retirement accounts.
- Monthly living expenses: Housing, utilities, food, transportation, and other necessary living expenses.
The IRS uses the data from Form 433-A to evaluate the taxpayer’s financial situation and determine whether they qualify for relief programs like an Offer in Compromise, which allows taxpayers to settle their debt for less than the full amount owed, or to negotiate a Partial Payment Installment Agreement (PPIA). It’s important to provide accurate information, as inaccuracies can lead to rejection of your application or further scrutiny from the IRS.