When you owe the IRS money but can't pay it all at once, Form 433-F becomes your financial report card. This simplified statement helps the IRS understand your financial situation and work with you to resolve your tax debt. Whether you're negotiating a payment plan or requesting temporary relief, this form provides the IRS with a snapshot of your income, assets, and monthly expenses.

What Form 433-F Is For

Form 433-F (Collection Information Statement for Wage Earners and Self-Employed Individuals) is the IRS's tool for gathering current financial information when you have an outstanding tax liability. Think of it as a financial health checkup that shows the IRS what you own, what you owe, and how much you can realistically afford to pay each month toward your tax debt. IRS.gov

This form serves several critical purposes. First, it helps the IRS determine the best method for you to satisfy your tax debt—whether through a payment plan, an offer in compromise, or temporary collection delay. Second, it protects you by ensuring that any payment arrangement leaves you enough money for basic living expenses using standardized allowances. Finally, it creates a formal record of your financial circumstances that the IRS uses to make collection decisions.

The form is specifically designed for individuals—both wage earners working traditional jobs and self-employed individuals running their own businesses. If you're a business entity (like a corporation or partnership), you would use Form 433-B instead. Form 433-F is a shorter, more streamlined version compared to Form 433-A, which is typically used in more complex collection situations. IRS.gov

When You’d Use Form 433-F

Not Amended (Purpose & Triggers)

Important clarification: Form 433-F is not a tax return that gets filed on a regular schedule or amended. Rather, it's a collection tool you submit only when requested by the IRS or when you're proactively seeking certain payment relief options.

You'll need to complete Form 433-F in these specific situations:

• Requesting an installment agreement when you owe over $50,000: If your tax debt exceeds this threshold, the IRS requires detailed financial information before approving a long-term payment plan. For smaller debts, you can often set up a payment plan online without this form.
• Applying for Currently Not Collectible (CNC) status: If you genuinely cannot afford to pay anything toward your tax debt while covering basic living expenses, the IRS may temporarily halt collection efforts. Form 433-F documents your financial hardship. IRS.gov
• Submitting an Offer in Compromise: When you're proposing to settle your tax debt for less than you owe, the IRS needs comprehensive financial information to evaluate whether you truly cannot pay the full amount.
• When your proposed payment is below the minimum: If you're setting up an installment agreement online but cannot afford the system's minimum required monthly payment, you'll be directed to complete Form 433-F to justify a lower payment amount.
• Upon IRS request during collection proceedings: If a revenue officer is assigned to your case or you receive a notice requesting financial information, you must submit Form 433-F by the deadline specified.

You don't file Form 433-F "late" in the traditional sense—you respond to IRS requests or submit it when seeking relief. However, failing to provide it when requested can result in enforced collection actions like levies or liens. IRS.gov

Key Rules or Details

• Accuracy is legally required: You sign Form 433-F under penalty of perjury. Intentionally providing false information can result in serious legal consequences, including criminal prosecution for tax fraud.
• IRS Collection Financial Standards apply: Your monthly living expenses are evaluated against national and local standards published by the IRS. These standards—updated annually—determine allowable amounts for food, clothing, housing, utilities, transportation, and healthcare. You're generally allowed the standard amount for your household size and location, even if you spend less. If you spend more, you'll need to justify why. IRS.gov
• Documentation is essential: While Form 433-F doesn't require you to attach documents initially, the IRS will likely request verification of your financial information. Be prepared to provide recent pay stubs, bank statements (typically three months), investment account statements, vehicle registrations, mortgage statements, and bills for recurring expenses.
• All assets must be disclosed: This includes obvious items like bank accounts, investments, and real estate, but also extends to digital assets (cryptocurrency), whole life insurance policies with cash value, valuable collectibles, and business assets if you're self-employed.
• Both spouses' information is required: If you're married, you must include your spouse's financial information, even if only one spouse owes the tax debt, because the IRS evaluates household income and expenses.
• The six-year rule provides flexibility: If you can pay your tax debt in full within six years (72 months), the IRS may allow actual expenses that exceed their financial standards, including minimum payments on student loans and credit cards. This rule recognizes that standard allowances don't fit every situation. IRS.gov

Step-by-Step (High Level)

Step 1 – Gather your financial documents

Before starting the form, collect current information about all bank accounts, investments, digital assets, property values, vehicle information, monthly bills, income statements (pay stubs or profit/loss statements if self-employed), and debt balances (mortgages, car loans, credit cards).

Step 2 – Complete personal information

Fill in the header section with names, Social Security numbers, address, county of residence, phone numbers, and household size. If you're self-employed, include your business name, EIN, business type, and number of employees.

Step 3 – Document all assets (Sections A–E)

List every bank account with current balances, all investments (IRAs, 401(k)s, stocks, bonds, mutual funds), digital assets like cryptocurrency, real estate with current values and amounts owed, vehicles and other personal property, and credit card limits and balances. For business owners, include accounts receivable and merchant account information.

Step 4 – Report income (Sections F–G)

For wage earners, attach current pay stubs or complete the employment section showing gross pay, taxes withheld, and pay frequency. For self-employed individuals, provide net monthly self-employment income and attach your current year profit and loss statement or Schedule C. Include all non-wage income such as Social Security, pensions, rental income (net of expenses), alimony, child support, and investment income.

Step 5 – Detail monthly living expenses (Section H)

List your actual monthly expenses for food and personal care, transportation (gas, insurance, maintenance), housing and utilities (rent/mortgage, utilities, property taxes), medical expenses (insurance premiums, out-of-pocket costs), and other necessary expenses (childcare, court-ordered payments, required retirement contributions). For expenses paid quarterly or annually, convert them to monthly amounts using the conversion chart in the instructions.

Step 6 – Review and sign

Double-check all figures for accuracy. Both you and your spouse (if applicable) must sign and date the form under penalty of perjury.

Step 7 – Submit with supporting forms

If you're requesting an installment agreement, submit Form 433-F along with Form 9465 (Installment Agreement Request). Mail the forms to the address shown in your IRS notice or the address specified in the Form 9465 instructions. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Underreporting income or omitting assets

Why it's problematic: The IRS has access to income reporting documents and can identify discrepancies. Hidden assets discovered later can result in rejection of your payment plan or offer, plus potential fraud penalties.
How to avoid it: Disclose everything, even if you think it's insignificant. If you recently closed an account, mention it. If you own cryptocurrency from years ago, include it. Honesty protects you.

Mistake #2: Claiming excessive or non-allowable expenses

Why it's problematic: Claiming significantly more than IRS standards without justification, or including expenses that don't meet the "necessary expense test" (expenses needed for health, welfare, or income production), will result in adjustments or rejection.
How to avoid it: Review the IRS Collection Financial Standards before completing Section H. Be realistic about expenses. Cosmetic procedures, luxury items, and voluntary retirement contributions beyond required amounts typically won't be allowed.

Mistake #3: Using outdated financial information

Why it's problematic: The IRS requires current information, typically within 60–90 days. Outdated account balances or old pay stubs may require you to resubmit everything.
How to avoid it: Gather statements and documentation from the current month or previous month. Date your form appropriately. If your financial situation changes significantly while the IRS is reviewing your form, notify them immediately.

Mistake #4: Failing to account for self-employment taxes

Why it's problematic: Self-employed individuals often forget that net income should reflect ordinary business expenses, but not depreciation (a non-cash expense). They also may not plan for quarterly estimated tax payments.
How to avoid it: Attach your current profit and loss statement. Include estimated tax payments as a monthly expense in Section H so the IRS recognizes this obligation.

Mistake #5: Not converting non-monthly expenses properly

Why it's problematic: Property taxes paid annually, insurance premiums paid semi-annually, or quarterly expenses must be converted to monthly amounts. Entering the full annual amount as a monthly expense drastically overstates your expenses.
How to avoid it: Use the conversion chart in the Form 433-F instructions: quarterly expenses divided by 3, semi-monthly multiplied by 2, biweekly multiplied by 2.17, weekly multiplied by 4.3.

Mistake #6: Incomplete signatures

Why it's problematic: Both taxpayers (and spouses, if applicable) must sign. An unsigned form delays processing.
How to avoid it: Review the signature section before mailing. If filing jointly and both spouses have income or assets, both signatures are mandatory.

What Happens After You File

Immediate effects

Once you submit Form 433-F, the IRS is generally prohibited from taking levy action while your request is under consideration. The statute of limitations on IRS collection is suspended during this review period, meaning the clock stops on how long the IRS has to collect the debt. IRS.gov

IRS review process

A revenue officer or automated collection system will analyze your financial information. The IRS calculates your monthly disposable income (total household income minus allowable expenses) to determine what you can afford to pay. This process typically takes 30–60 days but can be longer in complex cases.

Possible outcomes

• Installment agreement approval: You'll receive a letter specifying your monthly payment amount, payment due date, and any setup fees. Setup fees range from $0 (for certain low-income taxpayers) to $225, depending on your income level and whether you choose direct debit. IRS.gov
• Currently Not Collectible status: If your allowable expenses exceed your income, the IRS may place your account in CNC status, temporarily halting collection activity. Your case will be reviewed periodically, and collection can resume if your financial situation improves.
• Offer in Compromise consideration: If appropriate, the IRS may accept a reduced settlement amount based on your reasonable collection potential.
• Request for additional documentation: The IRS may ask for bank statements, pay stubs, tax returns, or other verification of the information you provided.
• Denial: If the IRS determines you can pay more than you've offered or that you haven't fully disclosed your financial situation, your request may be denied. You have appeal rights if this occurs.

Ongoing obligations

If approved for a payment plan, you must make all payments on time, file all future tax returns by their due dates, pay all future taxes in full, and respond to any IRS correspondence promptly. Failure to comply can result in default of your agreement, and the IRS can resume levy actions. Interest and penalties continue to accrue on your unpaid balance until it's paid in full. Your future tax refunds will be automatically applied to your outstanding balance.

FAQs

Q1: Can I apply for a payment plan online instead of using Form 433-F?

Yes, if you owe $50,000 or less (individuals) or $25,000 or less (businesses), you can use the IRS Online Payment Agreement tool at IRS.gov without submitting Form 433-F. The online system is faster and has lower setup fees. Form 433-F is only required when you owe more than these thresholds or cannot afford the minimum payment the online system calculates. IRS.gov

Q2: How far back should my financial documents be?

The IRS wants current financial information, typically from within the last 60–90 days. Bank statements should cover the most recent three months. Pay stubs should be from the current or most recent pay period. If your financial situation has changed recently (job loss, medical emergency, etc.), include a written explanation with documentation.

Q3: What if my expenses exceed the IRS standards?

If your actual necessary expenses exceed IRS Collection Financial Standards, you can claim them, but you must provide documentation and justification. For example, if you have unusually high medical expenses due to a chronic condition, provide medical bills and explanation. The IRS has discretion to allow expenses above standards when facts and circumstances warrant it. IRS.gov

Q4: Do I need to include my spouse's information if we file separate tax returns?

Yes. Form 433-F requires household financial information regardless of filing status. Even if your spouse doesn't owe the tax debt, their income and assets affect household finances, so both spouses' information must be included if you're married.

Q5: What happens to my tax refunds while I have a payment plan?

The IRS will automatically apply any federal or state tax refunds to your outstanding balance. You should continue making your scheduled monthly payments even when refunds are applied. Don't reduce your payments expecting a refund to cover them—if the refund is smaller than expected, you could default on your agreement.

Q6: How long does it take to get approved?

Processing times vary. Simple payment plans through the online system can be approved immediately. Form 433-F submissions typically take 30–60 days for review. If the IRS requests additional documentation, add another 30–45 days. Complex cases or Offers in Compromise can take six months or longer.

Q7: Can the IRS reject my Form 433-F?

The IRS won't reject the form itself, but they may reject your payment proposal if they determine you can afford to pay more or if you haven't provided accurate financial information. You have the right to appeal any IRS decision regarding collection alternatives. If your request is rejected, you'll receive a letter explaining why and informing you of your appeal rights.