Form 433A-433F-433B

Certain key items to make sure of:

Each numbered section must have a response. If the answer is zero, put zero. If the question is not applicable to your situation, then put N/A for not applicable. Just make sure all items are answered. If you don't know the answer, then find it! If you can't find it then estimate the answer to the best of your ability. Do not round off all your answers. The IRS doesn't want you to guess or even estimate your income and expenses. They expect you to gather source documents to arrive at the numbers you use. You can use this to your advantage, by putting together a group of months that support the lowest monthly payment you want to make.

You must try to get a monthly payment low enough so that you can pay it on time each month. You always have the option of paying more money so the balance can be paid off sooner (saving interest and penalties). But be aware that no matter how much you prepay the liability, you absolutely must pay the total amount of your monthly payment on time, or you will default the installment agreement. Under recent rules, the IRS will give you a short time (perhaps a week) to pay and "catch up" the agreement. But don't rely on it. Even though administratively they are not taking action, technically if you file or pay late (details under another section), you broke the agreement. Once that happens, they can take collection action anytime they want to. For over 20 years, and still holding true today, I have never seen or heard of the IRS taking collection action (levying or seizing) when all five parts of an agreement are still in force.

Purpose of this form - The IRS uses form 433A to see what income is available to make monthly payments. They also use it to see what assets you have, and how they can access your assets if they need/want to levy or seize them. You will use this form to show them the IRS you don't have much to give them and why they should accept a low dollar payment plan or offer in compromise.