The IRS has 3 basic financial forms that are used to provide financial information when submitting an Offer in Compromise and also Installment Agreement when the amount of the tax debt is over $25,000.

The IRS uses this financial information to determine the assets and financial ability of individuals and businesses to pay the tax debt back.

The IRS has guidelines when establishing expenses and also the value of assets. That is why it is usually to the taxpayer advantage to have representation before submitting any financial information.

The 3 main financial forms are the 433A, 433B and 433F.

433A - The 433A is the Collection Information Statement for Individuals.

The taxpayer will need to provide general information including: name, address, place of employment, name and age of dependents and other financial information concerning bankruptcy, future income, lawsuits etc.

The IRS will also require the taxpayer to list assets including: bank accounts, vehicles, securities, retirement accounts, cash on hand, real property and accounts receivable.

The taxpayer will need to provide all sources of income as well as monthly household expenses, vehicle and house payments.

Housing standards and vehicle standard are used by the IRS to determine allowable amounts. For housing it is determine by county in which taxpayer resides and the family size.

If the taxpayer is self-employed, the IRS will also required business assets including bank accounts, real property, cash on hand, equipment, vehicles, and any other business assets.

433B – The 433B is the Collection Information Statement for Businesses.

The Business will need to provide name, address of company, payroll information, name and SSN of Partners, Officers, LLC members and Shareholders as well as general information concerning lawsuits, bankruptcy, transfer of assets, future income.

All business asset must be disclosed including bank accounts, accounts receivable, investments, real property , vehicles, equipment and any other business assets.

A profit and loss must also be provided to include income and expenses of business over a given period of time.

433F – The 433F is similar to the 433A only a more simple version used for Installment Agreements when the tax debt is over $25,000.