If you owe back taxes to the IRS and can't pay the full amount, Form 433-A is your financial disclosure document that shows the agency exactly what you can afford. Think of it as a detailed financial snapshot that helps the IRS understand your complete money situation—your income, expenses, assets, and debts—so they can work out a realistic payment solution with you.

What Form 433-A Is For

Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals) is the IRS's tool for gathering comprehensive financial information from individuals who owe taxes but cannot pay in full. This isn't a payment form—it's a disclosure form that paints a complete picture of your financial life IRS.gov.

The form collects information about everything you own and owe: bank accounts, investments, real estate, vehicles, personal property, digital assets like cryptocurrency, monthly income from all sources, and your necessary living expenses. The IRS uses this information to determine how much you can realistically afford to pay toward your tax debt, whether through a payment plan (installment agreement), an offer in compromise (settling for less than you owe), or by temporarily pausing collection efforts if you're experiencing financial hardship IRS.gov.

When You’d Use Form 433-A

When It's Required

You typically complete Form 433-A when the IRS requests it, not voluntarily. The agency may ask you to submit this form in several situations IRS.gov:

Common Scenarios

• You're requesting an installment agreement for a tax debt exceeding certain thresholds
• You're applying for an offer in compromise to settle your tax debt for less than the full amount
• You're asking the IRS to temporarily delay collection due to financial hardship (Currently Not Collectible status)
• You're being held responsible for employment taxes as a business owner or responsible person
• You owe individual income taxes from Form 1040 and the standard payment options won't work

Timing Notes

Unlike tax returns, there's no annual filing deadline for Form 433-A—you file it when your specific tax collection situation requires it. There's no concept of "late" or "amended" Form 433-A submissions in the traditional sense. However, if your financial situation changes significantly after you submit the form, or if you made errors in your original submission, you should promptly provide updated or corrected information to the IRS.

Key Rules and Requirements

Who Must Complete Which Sections

Who must complete which sections: Wage earners complete Sections 1, 2, 3, 4, and 5. Self-employed individuals complete Sections 1, 3, 4, 5, 6, and 7. If you have both wage income and self-employment income, you'll need to complete all seven sections IRS.gov.

Critical Disclosure Requirements

Critical disclosure requirements: The form requires complete transparency. You must list all assets, including those held domestically and in foreign countries or jurisdictions. This includes traditional assets like bank accounts and real estate, as well as modern digital assets such as Bitcoin, Ethereum, and other cryptocurrencies, NFTs, and smart contracts. You'll need to provide the email addresses used to set up cryptocurrency exchanges and indicate who has access to private keys and digital wallets.

Verification Documentation

Verification documentation: After submitting Form 433-A, expect the IRS to request supporting documentation. Common verification items include recent pay stubs, bank statements (typically three months), investment account statements, loan documents, deeds or property valuations, vehicle registration, and proof of monthly expenses like utility bills and insurance payments IRS.gov.

Joint Liability Considerations

Joint liability considerations: If you're married and filing for a joint tax liability, both spouses must provide financial information and sign the form. If only one spouse owes taxes but you share expenses or live in a community property state, you generally still report total household income and expenses IRS.gov.

Step-by-Step (High Level)

Step 1: Gather your financial documents

Before starting the form, collect recent bank statements, investment statements, pay stubs, loan documents, property valuations, cryptocurrency wallet information, and documentation of monthly expenses.

Step 2: Complete Section 1 (Personal Information)

Provide basic identifying information including names, addresses, Social Security numbers, marital status, household members, and any business interests you may have.

Step 3: Fill out Section 2 (Employment Information) if you're a wage earner

List employer details, occupation, how long you've worked there, and pay period frequency for both you and your spouse if applicable.

Step 4: Answer Section 3 (Other Financial Information)

Disclose any lawsuits, past bankruptcies, foreign residency, trusts, safe deposit boxes, and recent asset transfers over $10,000.

Step 5: Detail Section 4 (Personal Assets)

This is the most comprehensive section. List all cash on hand, bank accounts (including PayPal and mobile accounts), investments, digital assets like cryptocurrency, available credit, life insurance policies with cash value, real property, vehicles, and personal assets such as jewelry, artwork, or collections.

Step 6: Complete Sections 6 and 7 (Business Information) if self-employed

Self-employed individuals must provide business information including payment processors used, business bank accounts, accounts receivable, business assets, and a profit and loss statement showing business income and expenses.

Step 7: Calculate Section 5 (Monthly Income and Expenses)

Report all monthly income from wages, self-employment, investments, pensions, Social Security, and other sources. Then list your monthly living expenses using IRS national and local standards for categories like food, housing, transportation, healthcare, and other necessary expenses.

Step 8: Sign and submit

Both taxpayers (if joint liability) must sign under penalty of perjury certifying the information is true, correct, and complete.

Common Mistakes and How to Avoid Them

Incomplete asset disclosure

One of the most serious errors is failing to list all assets, particularly newer categories like cryptocurrency or online payment accounts. The IRS has broad information-gathering capabilities and can discover undisclosed assets, which damages your credibility and can result in rejection of your payment proposal. Solution: List everything, even accounts with zero balances or minimal values.

Overlooking digital financial platforms

Many people forget to include PayPal, Venmo, Cash App, stored value cards, and cryptocurrency holdings. These are specifically requested on the form. Solution: Review all apps on your phone and email accounts for financial services you may have forgotten.

Using net income instead of gross

A common error is entering take-home pay rather than gross income for wages. The form requires gross monthly income before any deductions. Solution: Check your pay stubs for the gross amount, then calculate monthly figures using the multipliers provided on the form (weekly wages × 4.3, biweekly × 2.17, or semimonthly × 2).

Claiming excessive or unallowable expenses

The IRS uses national and local standards for living expenses. Claiming amounts significantly higher than these standards without documentation, or listing expenses the IRS generally doesn't allow (such as private school tuition, voluntary retirement contributions, or unsecured credit card payments) can delay processing IRS.gov. Solution: Familiarize yourself with the national standards for food, clothing, housing, and healthcare on the IRS website, and understand which expenses typically aren't allowed unless you can prove they're necessary for health, welfare, or income production.

Forgetting to include both spouses' information

When there's joint liability, both spouses must provide complete information and signatures. Missing a spouse's employment information or signature will result in the form being returned. Solution: Treat this as a joint project requiring both spouses' participation from the start.

Failing to update outdated information

If your financial situation changes between starting and submitting the form—such as a job loss, inheritance, or major expense—using outdated information can derail your payment arrangement. Solution: Use the most current information available and date your account statements consistently.

What Happens After You File

After submitting Form 433-A, the IRS will review your financial information to determine your ability to pay. This process typically takes several weeks to a few months, depending on the complexity of your situation and current IRS workload IRS.gov.

Verification Requests

Verification requests: In most cases, the IRS will contact you requesting documentation to verify the assets, income, and expenses you reported. Be prepared to provide bank statements, pay stubs, loan documents, and receipts for claimed expenses. Respond promptly to these requests to avoid delays IRS.gov.

Possible Outcomes

Possible outcomes: Based on your Form 433-A, the IRS may propose several solutions. You might be offered an installment agreement allowing you to pay the debt over time in monthly payments. If your financial situation is particularly difficult, you might receive Currently Not Collectible (CNC) status, which temporarily suspends collection activities (though interest and penalties continue accruing). If you submitted the form as part of an offer in compromise application, the IRS will use it to calculate the minimum settlement amount they'll accept.

Ongoing Obligations

Ongoing obligations: If your payment arrangement is approved, you must comply with all terms, including making timely payments and staying current on all future tax obligations. The IRS may periodically review your financial situation and ask for updated information to ensure the arrangement remains appropriate.

If Denied

If denied: If the IRS denies your proposed payment arrangement, you have appeal rights. You'll receive a letter explaining the denial reasons and your options for challenging the decision.

FAQs

Do I need to hire a tax professional to complete Form 433-A?

A: While not required, many people benefit from professional help, especially if they're self-employed, have complex assets, or are applying for an offer in compromise. A tax professional familiar with IRS collection procedures can help ensure accuracy and present your financial information in the most favorable light within legal guidelines.

How far back do I need to provide bank statements and other documentation?

A: The IRS typically requests the three most recent months of bank statements and account documentation. For other items like pay stubs, they generally want recent statements that accurately reflect your current financial situation.

What if I don't have all the information requested on the form?

A: Do your best to obtain all requested information. If something truly isn't applicable to your situation, write "N/A" (not applicable) rather than leaving it blank. For items you can't immediately locate, such as an old account number, provide as much information as possible and explain the situation in an attachment. Never simply guess or provide false information.

Can the IRS reject my Form 433-A?

A: Yes. The IRS can return the form if it's incomplete, unsigned, uses an outdated version, or lacks required supporting documentation. More seriously, if the IRS discovers you deliberately omitted assets or provided false information, your payment proposal will be rejected and you could face additional penalties.

Will submitting Form 433-A stop IRS collection activities?

A: In many cases, yes—at least temporarily. While the IRS reviews your financial information and considers your payment proposal, aggressive collection actions like bank levies or wage garnishments are typically suspended. However, this isn't automatic; confirm with the IRS that collection activity will be paused during the review period.

How often do I need to update my Form 433-A?

A: You don't need to file updates on a regular schedule. However, if you're in an installment agreement or other payment arrangement, the IRS may request updated financial information periodically (often every two years) to ensure the payment amount remains appropriate. Additionally, if your financial situation significantly improves or worsens, you should proactively contact the IRS to discuss adjusting your payment arrangement.

What happens if I can't afford even the minimum payment the IRS calculates?

A: If the IRS's calculation shows you genuinely cannot afford any payment while covering necessary living expenses, you may qualify for Currently Not Collectible status. While this temporarily halts collection, your debt remains, and the IRS can resume collection efforts if your financial situation improves. Interest continues accruing during this time, and the IRS may file a tax lien to protect its interests.