5 Steps to Completing an IRS Financial Statement

The IRS financial statement (Form 433-A, 433-B or 433-F) is the most crucial piece to resolving outstanding tax matters.  Some of our clients (begrudgingly) fill out the form, not wanting to list certain information, withhold information about non-liable spouses, not disclose a retirement account, etc.  However, it is in both of our best interests to fill out the IRS financial statement to its completion and in full.  The more information we have the better as we can disclose what a taxpayer might qualify for as far as a resolution is concerned. Below are 5 very important steps and guidelines to insure the IRS financial form is completed in its entirety:

– Make sure to provide as much information as you have on the IRS  financial statement form (the 433-A form is 6 pages in length). If you are self employed do your best to differentiate between business and personal assets, income, and expenses.

– Do not spend too much time on the IRS financial statement form itself (not more than 15 -20 minutes). Eventually we will take the information you list on the form and review it with you in person or by telephone.

– Collect as many of the attachments necessary to complete the IRS financial statement form as possible. Items such as tax returns, bank statements, profit and loss statements (for businesses), utility statements, retirement account statements, any additional liabilities you may have such as a car payment, state liability, court ordered payments, etc. are required to complete the IRS financial statement form. Keep good records of the documentation on a monthly basis going forward as well due to the fact we may need to update the data down the road.

– Make sure to list your non-liable spouse, if you are married, on the front page of the IRS financial statement form.  If the non-liable spouse works and brings income into the household, be sure to list the monthly amount as well.  We will be able to complete a breakdown by percentage of income based on your income and your spouses. Your spouse will not be liable for the tax liability just because he/she lists their information on the form. It is imperative to being able to give you the best possible idea of what it is you may qualify for.

– Finally, we will review the IRS financial statement form in greater detail with you, collect all attachments necessary, provide financial consulting where needed, and outline the best possible strategy to handle your IRS tax matters. Again, the IRS financial statement is the form we will use to determine what it is you or your business qualify for. It is the absolute most important part of what we do here at Highland Tax Group. If you are presented with an IRS financial statement form by the IRS and are asked to fill it out, do not wait, call us immediately! We will be glad to walk you through the process and insure you get the best possible results as it relates to your IRS tax matters. An brief example of each form can be found below.

433-A 433-B 433-F