Form 433B : Chapter 10 – Killer IRS Advice On Preparing

Key Items To Make Sure Of

1. 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 then estimate it to the best of your ability.
2. 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.
3. Purpose of this form- The IRS uses it to see what income is available to make monthly payments for a business agreement, or to be added to the form 433A to increase income . They also use it to see what assets you have, and how they can get to it if they need/want to seize it! You will use this form to show them that you don’t have much to give them and why they should accept a low dollar payment plan or an offer in compromise.

Use this form to show income from a business that is not on a W-2, such as shown on a 1099. If your income is on a K-1 and you have expenses against that income (not already included on the K-1), then use this form to deduct those expenses. Always check back to your 1040 income tax return. Sometimes you have business expenses included on a schedule c, form 2106, office in home, etc. that you want to make sure is included on the 433B . If the form doesn’t show where to include the expense, just attach a separate sheet of paper.