IRS Collection Information Statement

Basically, the collection information statement is a form that is used to give important financial details to the Internal Revenue Service. This form will contain details such as the income, expenses, and assets of the taxpayer. If you owe back taxes to the IRS, then they will use the collection information statement to decide how much they want to collect from you now, and how much you should pay on a monthly payment plan. They may also use it to find levy sources in the event that you do not comply with their wishes. There are various versions of this form: 433-A, 433-B and 433-F.

Before the IRS agrees to an Installment Agreement or an Offer in Compromise, they will make use of the collection information statement. Many times when the liability is under $25,000 they will forgo the use of the collection information statement.

Collection Information Statement Form 433-A

This is the Collection Information Statement that is meant for self-employed people and wage earners. This form is available as a fill in. This means that you can fill in the information in the form when it is in PDF format and then after you have completed filling in the details, you can print out the completed form.

Collection Information Statement Form 433-B

This is the form that is primarily used by businesses.

Collection Information Statement Form 433-F

Form 433-F is a Collection Information Statement that was used for small amount cases in the past only. However, these days, the IRS is making use of this form in those cases where the amount due is more than $100,000, and many ACS cases. It is to be noted that you will not be allowed to submit this form along with the Offer in Compromise.

At the time of preparing the Collection Information Statement, there are certain factors that you will have to take into account and they are as follows:

• Description and ownership of property- It is important for you to list the property that you own. You have to include the location of the property with its address. Apart from these, you also need to list whether they are any joint owners of the property and their names.
• Bank accounts- You have to list the bank accounts that you have in your name. Even if there is an account where you have no available balance, you have to mention that account.
• Wages and salaries- You need to list the gross amount of salary or wage that you earn every month. Do not deduct allotments or with holdings that you take out from your salary, like car payments, credit union deductions, or insurance payments. Allowable deductions will be listed separately.
• Net business income- If you have a business, then you need to state the net income that you have earned from your business. This amount will exclude monthly business expenditures. However, the gross income an expenses will be listed separately
• Necessary living expenses- Like the name suggest; you need to state the approximate amount of money that you use to provide for the health and welfare of you and your dependents.

The IRS provides table allowances for various expense amounts.Please check this site under “IRS forms” on the left tab for downloadable copies