If you owe back taxes to the IRS, there’s a good chance you’ll be asked to complete Form 433-A, the Collection Information Statement for Wage Earners and Self-Employed Individuals. This form is one of the most important tools the IRS uses to decide how much you can afford to pay toward your tax debt, and it plays a key role in determining whether you qualify for certain tax relief programs.

We work with Georgia taxpayers every day to help them navigate Form 433-A and the programs it connects to. Knowing when you might need to complete this form and how it can impact your case can be the difference between a manageable resolution and a financial burden.

What IRS Form 433-A is and Why it Matters to You

IRS Form 433-A is designed to give the IRS a full picture of your financial situation. It asks for details about your income, expenses, assets, debts, and other financial obligations. The IRS uses this information to calculate your reasonable collection potential, essentially, how much they believe you can pay toward your tax debt.

The form isn’t just about numbers. It’s about control over your financial future. The information you provide will guide the IRS’s decisions about:

• Whether you can make monthly payments under an installment agreement
• Whether you qualify for an Offer in Compromise to settle for less than the full amount owed
• Whether your account should be placed in “currently not collectible” status due to hardship

In short, this form can open the door to relief or lock you into payments you can’t sustain. Accuracy and strategy are critical.

When You May Need to Complete Form 433-A

You might be required to complete Form 433-A in several situations, most commonly when:

• You’re applying for a long-term payment plan and the IRS needs proof of your ability to pay
• You’re requesting an Offer in Compromise to settle your tax debt for less
• You’re asking the IRS to temporarily delay collection due to financial hardship
• You owe a significant amount in back taxes and the IRS is evaluating your case for enforcement actions, such as liens or levies

For Georgia taxpayers, these situations often arise after a series of IRS notices or following a tax audit that results in a large balance due. If you’re self-employed, the IRS will look closely at your business income and expenses in addition to your personal finances.

The form isn’t optional when the IRS requests it. Failing to submit it can stop negotiations in their tracks and push the IRS toward more aggressive collection actions.

How Form 433-A Can Impact Your Tax Relief Options

Completing Form 433-A isn’t just a box to check. The way it’s filled out can directly influence which tax relief options are available to you and how favorable they’ll be.

For example:

• Partial Payment Installment Agreements: If your financial information shows you can only afford small monthly payments, you may qualify for a reduced payment plan that doesn’t fully pay the debt before the statute of limitations expires.
• Offers in Compromise (OIC): The IRS uses your reasonable collection potential from Form 433-A to decide whether to accept an OIC. If your reported assets or disposable income are higher than necessary, you could end up with a rejected offer.
• Currently Not Collectible Status: If your form shows you can’t meet basic living expenses, the IRS may temporarily halt collections. This status can give you breathing room while your financial situation improves.

The IRS will compare your reported expenses to its Allowable Living Expense standards. If your numbers are too high without a strong justification, they’ll be reduced. If they’re too low because you missed allowable expenses, you could be stuck paying more than you should.

Why Getting Professional Help Makes a Difference

We’ve seen too many Georgia taxpayers try to handle Form 433-A on their own, only to discover that small mistakes cost them thousands.

Common problems include:

• Leaving sections blank instead of marking N/A which can delay processing or raise red flags
• Guessing at asset values instead of providing documentation leading to inflated collection potential
• Forgetting to include certain expenses that could lower monthly payment amounts
• Providing information that suggests you can afford more than you actually can, simply because the numbers weren’t calculated in the way the IRS expects

When we work with clients, we don’t just fill out the form. We strategize. That means making sure the information is accurate, complete, and presented in a way that supports your case for the best possible resolution. We also handle communications with the IRS so you’re not left guessing how your form will be interpreted.

Call Us Before You Submit Form 433-A

If the IRS has asked you to complete Form 433-A, or if you think it may be required for your tax relief application, don’t go it alone. At Frost Law, we help Georgia taxpayers navigate this process from start to finish, ensuring accuracy and advocating for the most favorable outcome.

Contact us right now to discuss your situation and get the professional guidance you need before you submit anything to the IRS.

Frequently Asked Questions about Form 433-A

1. Does every taxpayer with back taxes have to complete Form 433-A?

No. The IRS typically requests Form 433-A in specific situations, such as when you owe a significant balance and are applying for an installment agreement, Offer in Compromise, or currently not collectible status. Many taxpayers can resolve smaller debts through simplified payment plans without this form. However, if the IRS does request it, you must provide it or risk collection actions like liens or levies.

2. How long does it take the IRS to review Form 433-A?

Processing times vary. In Georgia cases we’ve handled, the IRS may review and respond within a few weeks for straightforward installment agreements. For Offers in Compromise or hardship requests, the review can take several months due to the complexity of the financial analysis. Submitting a complete and well-documented form can help speed up the process.

3. What happens if I make a mistake on my Form 433-A?

Mistakes can delay your case or lead to less favorable payment terms. The IRS relies on this form to decide your ability to pay. If your numbers suggest you can afford more than you actually can, you may end up with higher payments or a rejected relief request. That’s why professional review is so important before submission.