This blog post discusses how to navigate Form 433-A, as well as how it differs from other Forms 433.
1 min read
The IRS will often require taxpayers to submit Form 433 in order to resolve a tax matter. This form is extremely important because it will often change the outcome of your client’s tax issue with the IRS. The most commonly used form is Form 433-A. Here's a look at how to navigate Form 433-A, as well as how it differs from other Forms 433.
Form 433-A – Collection Information Statement for Wage Earners and Self-Employed Individuals is the form the IRS uses to determine a taxpayer’s financial hardship. Your client must list all their income, expenses, assets, and liabilities. This form will be submitted for multiple reasons, including requests for installment agreements. If approved for an installment agreement, this form will have to be often resubmitted so the IRS can ensure that there have been no changes that would allow your client to afford to pay more of the tax debt. The IRS can demand that your client resubmit this form at any time to reflect their current income and expenses.
Each section of the form will go through the following:
The IRS will scrutinize each section in order to get a clear picture of your client's financial situation. They will compare the family size and expenses of your client to the national standards provided on the IRS website. Your client will need to submit the form along with prior tax returns and proof of all current expenses. It is critical to guide them through this form before they submit their information to the IRS.
Form 433-A (OIC) – Collection Information Statement for Wage Earners and Self-Employed Individuals is the same as the standard Form 433, except it is specifically for applications for an offer in compromise. The form is included in the Offer In Compromise Booklet, also known as Form 656.
Form 443-B – Collection Information Statement for Businesses is a financial statement form, similar to Form 433-A, but for businesses.
Form 433-D – Installment Agreement is the actual form used to request installment agreements.
Form 433-F – Collection Information Statement is used for tax debts that are smaller, generally less than $50,000. It is more streamlined and simpler, due to the smaller size of the tax debt. If the tax debt becomes greater, then your client will be required to use Form 433-A instead.
The IRS will ultimately decide which form that your client will be required to submit when determining their financial situation. No matter which form your client must submit, urge them to consult with a tax professional before submitting any information to the IRS.
Want more information on how to help tax resolution clients? Check out A Foolproof Guide to Getting Your Offer in Compromise Accepted.
Explore more of our recent Articles, User Stories, and Ebooks.
3 min read
3 min read
Canopy takes the headaches out of client management by offering a way to keep client info organized.
I love how easy it is to setup a new client in this software. Once set up, it's one click to get IRS transcripts downloaded for my review. This saves me at least an hour each week in comparison to the software I used to use.
This makes workflow for tax resolution manageable. This business is a bunch of hurry up and wait. This system helps to refresh my memory while transitioning to different clients.
The ability to securely share documents with clients as well as complete POAs from client contact data already in Canopy. The ability to route workflow between team members with color coded statuses allows us to work efficiently.
Cool features, outstanding customer service, constantly updating to make it better. I love that I can upload files easily to a secure client portal and we don't have to email files anymore. Absolutely can't imagine not having this software.
It's safe and secure. Clients are able to upload documents and the documents are saved their portal which as a result, keeps us better organized. The task feature keeps us organized and we know exactly the status of each client.
Submit this form, and we will be in touch soon to give you a custom demo.
Set a time for one of our product specialists to give you a guided tour practice.
Leave a comment!