What is IRS Form 433-A?

Form 433-A is the Collection Information Statement for Wage Earners and Self-Employed Individuals. The current revision is dated June 2026. A revenue officer asks for it in a field collection case to decide what a taxpayer can pay. It lists employment, household, bank accounts, investments, real property, vehicles, other assets, monthly income, and monthly living expenses, and it is signed under penalties of perjury.

What is the difference between Form 433-A and Form 433-F?

Both are Collection Information Statements for individuals. Form 433-F is the short version. IRM 5.15.1 says the Automated Collection System and the campuses use Form 433-F for individuals, which is the form an IRS phone representative or a campus letter usually requests. Form 433-A is the longer form a revenue officer uses, with separate sections for a self-employed individual. The IRS employee who asked names the form; use that one.

When does a business use Form 433-B?

Form 433-B, Collection Information Statement for Businesses, applies when the entity itself owes the tax, such as a corporation, partnership, or LLC with unpaid employment tax or corporate income tax. The IRM adds that Form 433-A may also be needed from the owner so the revenue officer can test whether the owner's compensation reported on Form 433-B is reasonable. An owner who is personally liable for a trust fund penalty completes an individual statement.

What are the IRS allowable expense standards?

The Collection Financial Standards, which IRM 5.15.1 also calls the Allowable Living Expense standards, set the monthly amounts the IRS allows for living expenses. National standards cover food, clothing, and other items, and out-of-pocket health care, and the IRS allows those amounts without questioning what was actually spent. Local standards cap housing and utilities by county and vehicle operating costs by region, with a nationwide vehicle ownership allowance. Other necessary expenses, such as taxes, court-ordered payments, and health insurance, are allowed when documented. An expense above a standard must be verified, reasonable, and documented.

How does Form 433-A (OIC) calculate an offer in compromise?

Form 433-A (OIC) totals available equity in assets, applying the reductions printed on the form, and adds future remaining income. Remaining monthly income is multiplied by 12 if the offer will be paid in five or fewer payments within five months, or by 24 if it will be paid over 6 to 24 months. The sum is the minimum offer amount, the figure IRM 5.8.5 calls reasonable collection potential. The Form 656 booklet states that the IRS generally will not accept an offer when the debt can be paid in full through an installment agreement, equity in assets, or both. The application fee is $205, and a lump-sum offer requires 20 percent with the offer, both waived under the low-income certification.

Does a Collection Information Statement lead to currently not collectible status?

It can. The IRS says it may temporarily delay collection when a taxpayer cannot pay any of the debt, and it may ask for Form 433-F, 433-A, or 433-B and documents to verify income, living expenses, bank accounts, and property before granting that status. IRM 5.16.1 governs the currently not collectible determination. The debt is not forgiven, penalties and interest continue, the IRS may file a Notice of Federal Tax Lien, and the IRS may review the financial situation later and resume collection.

Should a lawyer prepare Form 433-A or 433-B?

I prepare the statement when a revenue officer is assigned, when a business owes employment tax, when there is equity in a home, a business, or retirement accounts, when income is self-employment or irregular, when an offer in compromise is the goal, or when the numbers will support an installment agreement or currently not collectible status only if the expenses are presented within the IRM rules. The form is signed under penalties of perjury, and the choice of form, the valuation of each asset, and the expense presentation decide the outcome the IRS computes from it. A wage earner with one job, one bank account, and expenses under the standards can complete Form 433-F from the instructions on the form.

Collection Information Statement

IRS Form 433-A, 433-B, or 433-F: which one applies.

A Collection Information Statement is the sworn financial disclosure IRS Collections uses to decide what a taxpayer can pay. Form 433-F goes to the Automated Collection System, Form 433-A and Form 433-B go to a revenue officer, and the OIC versions go with Form 656. The IRS applies its Collection Financial Standards to the expenses, computes equity in each asset, and the result drives the installment agreement, currently not collectible status, or offer in compromise that follows. Each form is signed under penalties of perjury.

Mr. Powell prepares the Collection Information Statement and handles the IRS collection matter it belongs to for individuals and closely held businesses nationwide, from the office at 1629 K Street NW, Suite 300 in Washington, DC.

The forms, the Form 656 booklet, and Internal Revenue Manual 5.15.1, 5.8.5, 5.14.1, and 5.16.1 described on this page were checked on irs.gov on September 16, 2026. The revenue officer's request and the instructions on the form control over this summary. This page is not legal advice.

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What the IRS does with the statement.

Internal Revenue Manual 5.15.1, the Financial Analysis Handbook, effective June 29, 2026, tells Collection employees how to secure, verify, and analyze the financial information on a Collection Information Statement. Its stated purpose is to determine the taxpayer's ability to pay. The revenue officer compares the form with filed returns, internal records, and bank deposits, asks follow-up questions in the interview, and documents the result.

The analysis has two halves. The first is monthly income less allowable expenses. Allowable expenses are the national and local standards, which IRM 5.15.1 also calls the Allowable Living Expense standards, plus other necessary expenses that meet the necessary expense test and, in some cases, conditional expenses. The IRM instructs the revenue officer to advise the taxpayer that the IRS expects a monthly payment equal to the income remaining after those expenses. The second half is equity in assets. IRM 5.15.1.21 values each asset at fair market value less encumbrances, taking into account the priority of any Notice of Federal Tax Lien, and it permits a quick sale value that is generally 80 percent of fair market value. The IRM adds an expectation that the taxpayer use equity in assets toward the liability before other collection alternatives are considered.

Those two figures set the terms of everything that follows. Remaining monthly income sets the installment agreement payment under 26 U.S.C. section 6159. Income that cannot cover allowable expenses supports currently not collectible status under IRM 5.16.1. Equity plus future remaining income sets the minimum offer, the figure IRM 5.8.5 calls reasonable collection potential.

Official source: IRM 5.15.1, Financial Analysis Handbook
Official source: Collection Financial Standards
Official source: IRM 5.8.5, Financial Analysis (offers)
Official source: IRM 5.14.1, Securing Installment Agreements
Official source: IRM 5.16.1, Currently Not Collectible
Official source: 26 U.S.C. 6159, agreements for payment in installments
Official source: 26 U.S.C. 7122, compromises

Which form

The IRS employee who asked names the form.

Form 433-F
The short statement. IRM 5.15.1 says the Automated Collection System and the campuses use Form 433-F for individuals. If the request came by phone or by letter from an IRS campus, and no revenue officer has been assigned, this is usually the form. The IRS also lists it for a temporary delay of collection.
Form 433-A
Collection Information Statement for Wage Earners and Self-Employed Individuals (Rev. 6-2026). A revenue officer working a field case asks for this one. Wage earners complete Sections 1 through 5; a self-employed individual also completes Sections 6 and 7.
Form 433-B
Collection Information Statement for Businesses (Rev. 6-2026). Used for a corporation, partnership, or LLC that owes on its own account, including unpaid employment tax. The IRM notes that Form 433-A may also be needed from the owner to test the compensation reported on Form 433-B.
Form 433-A (OIC) and Form 433-B (OIC)
The offer versions (Rev. 4-2026). Each states that it is used only with Form 656, Offer in Compromise. They add the arithmetic that produces the minimum offer amount, so the plain 433-A or 433-B is the wrong form when the goal is an offer.

Official source: Form 433-A (Rev. 6-2026)
Official source: Form 433-B (Rev. 6-2026)
Official source: Form 433-F (Rev. 7-2024)
Official source: Form 433-A (OIC) (Rev. 4-2026)
Official source: Form 433-B (OIC) (Rev. 4-2026)
Official source: Form 656 booklet (Rev. 4-2026)

The expense standards decide most of the arithmetic.

The Collection Financial Standards are published on irs.gov and revised on a schedule. The national standards for food, clothing, and other items, and the out-of-pocket health care allowance, are allowed for the household size without questioning the amount actually spent. The local standards cap housing and utilities by county and vehicle operating costs by region; the vehicle ownership allowance applies nationwide. A household in the District of Columbia, Montgomery County, or Prince George's County is measured against the amount published for that county, whatever the lease or mortgage actually says.

IRM 5.15.1.11 lists other expenses that may be necessary or conditional. Court-ordered payments, child care, and accounting or legal fees for representation before the IRS are examples the IRM allows when they meet the necessary expense test and the amount is reasonable. A child's tuition, contributions to a voluntary retirement plan, and payments on unsecured consumer debt are the usual points of dispute; the IRM says voluntary retirement contributions are not a necessary expense, and the IRM disallows payments on unsecured debt, other than those required to produce income, when the liability can be paid in full within 90 days, and otherwise generally allows minimum credit card payments under the six-year rule or the miscellaneous allowance. IRM 5.14.1.4.1 describes the six-year rule and one-year rule under which the IRS may allow some expenses above the standards when an installment agreement will pay the liability in full within six years, or gives the taxpayer up to one year to adjust expenses to the standards.

The IRM also tells the revenue officer that the taxpayer is responsible for deciding what spending changes are needed, and that the officer is not to tell the taxpayer what he or she can or cannot own or spend. The standards limit what the IRS will allow; they do not dictate the household budget.

Official source: Collection Financial Standards
Official source: IRM 5.15.1, national and local standards, other expenses
Official source: IRM 5.14.1.4.1, six-year rule and one-year rule

Common mistakes

Where a statement goes wrong.

Understating assets
The IRS verifies a statement against internal records, returns, and bank deposits. IRM 5.15.1.21 values equity as fair market value less encumbrances, and the IRM allows a quick sale value that is generally 80 percent of fair market value. An asset left off the form is found, and the omission colors everything else on it.
Claiming expenses above the standards
The national standards for food, clothing, and other items are allowed without proof of what was spent. Housing, utilities, and transportation are capped by the local standards. An amount above a standard must be verified, reasonable, and documented, and the IRM says the revenue officer must document any deviation.
Omitting accounts
Every bank account, retirement account, brokerage account, digital-asset wallet, and line of credit belongs on the form. The 433-A also asks about assets transferred to others, any interest in a trust or estate, and any safe deposit box, including those held abroad.
Using stale numbers
IRM 5.15.1 says a statement should reflect information no older than the prior six months, and the IRS asks for an update when the information becomes older than 12 months. A statement built from last year's returns invites a second request.
Treating the signature lightly
Form 433-A, 433-B, and 433-F each close with a certification signed under penalties of perjury that the statement of assets, liabilities, and other information is true, correct, and complete. It is a sworn financial disclosure to the federal government.

How the statement drives the outcome.

Installment agreement. IRM 5.14.1, effective July 20, 2026, governs payment plans; the installment agreement page covers Form 9465, the user fees, and default. An individual owing $50,000 or less in combined tax, penalties, and interest, with required returns filed, may qualify to request a payment plan online. IRM 5.14.1 calls these simple payment plans, formerly streamlined installment agreements, and they are set up without a Collection Information Statement. Above that amount, or when the proposed payment will not pay the balance within the collection period, the IRS may ask for a Collection Information Statement and set the payment from remaining monthly income. Under 26 U.S.C. section 6331(k)(3), which applies the suspension rule of section 6331(i)(5), the collection period is suspended while an installment agreement request is pending, but not while an agreement is in effect.

Currently not collectible. The IRS says it may temporarily delay collection when the taxpayer cannot pay any of the debt, and that it may ask for Form 433-F, 433-A, or 433-B with documents verifying income, living expenses, bank accounts, and property. Under IRM 5.16.1 the account is reported currently not collectible. The debt is not forgiven, penalties and interest continue, the IRS may file a Notice of Federal Tax Lien, and the IRS may review the financial situation later and resume collection.

Offer in compromise. Form 433-A (OIC) and Form 433-B (OIC) end with the minimum offer computation: available equity in assets, after the reductions printed on the form, plus remaining monthly income multiplied by 12 for an offer paid in five or fewer payments within five months, or by 24 for an offer paid over 6 to 24 months. The Form 656 booklet states that the IRS generally will not accept an offer when the debt can be paid in full through an installment agreement, equity in assets, or both, and that adjustments such as $1,000 against a bank balance and $3,450 against a vehicle apply only to individuals and only after that finding. The application fee is $205 and a lump-sum offer requires 20 percent with the offer; both are waived under the low-income certification. The same statement therefore decides whether an offer is available at all before it decides the amount. Read offer in compromise and offer vs installment agreement for the program rules, IRS Form 656 for the offer form itself, and alternatives to an offer when the arithmetic points elsewhere.

For a Maryland resident, a Chapter 13 plan can also pay priority tax debt over time under court supervision; see Chapter 13 for IRS back taxes.

Official source: Payment plans
Official source: Temporarily delay the collection process
Official source: Offer in compromise
Official source: Form 656 booklet

Documents

What to gather before the form is filled in.

Income
The last three months of pay stubs, or a year-to-date profit and loss statement for a self-employed individual or a business, plus the most recent filed income tax return and any 1099s.
Bank and investment accounts
Three months of statements for every checking, savings, brokerage, and retirement account, and the current balance of any digital-asset account.
Real property and vehicles
The mortgage statement, a recent valuation or property tax assessment, the vehicle loan statement, and the year, make, model, and mileage of each vehicle.
Monthly expenses
The lease or mortgage, utility bills, vehicle payment, insurance, court-ordered payments, health insurance premiums, out-of-pocket medical costs, and any secured debt payment.
Business records
For Form 433-B, the accounts receivable aging, the general ledger or bank deposits for the period, the list of officers and their compensation, and the payroll tax deposit history.

When I prepare the statement.

I prepare the statement when a revenue officer is assigned, when a business owes employment tax and the owner may face a personal penalty, when there is equity in a home, a business, or retirement accounts, when income is self-employment or irregular, or when an offer in compromise is the goal. In those cases the choice of form, the valuation of each asset, the treatment of a shared household, and the presentation of expenses within the IRM rules decide the number the IRS computes. A wage earner with one job, one bank account, and expenses under the standards can complete Form 433-F from the instructions on the form.

The statement also fixes the record. A revenue officer who finds an omitted account or an overstated expense reads the rest of the form differently, and the certification is signed under penalties of perjury. Preparing it once, completely, with the supporting documents attached, is the work.

If a revenue officer has asked for Form 433-A or 433-B, tell me the form requested, the tax years and balance shown on the most recent notice, and whether the account belongs to you or to a business. Send only a high-level summary in the first contact.

Questions

Common questions.

What is IRS Form 433-A?
Form 433-A is the Collection Information Statement for Wage Earners and Self-Employed Individuals. The current revision is dated June 2026. A revenue officer asks for it in a field collection case to decide what a taxpayer can pay. It lists employment, household, bank accounts, investments, real property, vehicles, other assets, monthly income, and monthly living expenses, and it is signed under penalties of perjury.
What is the difference between Form 433-A and Form 433-F?
Both are Collection Information Statements for individuals. Form 433-F is the short version. IRM 5.15.1 says the Automated Collection System and the campuses use Form 433-F for individuals, which is the form an IRS phone representative or a campus letter usually requests. Form 433-A is the longer form a revenue officer uses, with separate sections for a self-employed individual. The IRS employee who asked names the form; use that one.
When does a business use Form 433-B?
Form 433-B, Collection Information Statement for Businesses, applies when the entity itself owes the tax, such as a corporation, partnership, or LLC with unpaid employment tax or corporate income tax. The IRM adds that Form 433-A may also be needed from the owner so the revenue officer can test whether the owner's compensation reported on Form 433-B is reasonable. An owner who is personally liable for a trust fund penalty completes an individual statement.
What are the IRS allowable expense standards?
The Collection Financial Standards, which IRM 5.15.1 also calls the Allowable Living Expense standards, set the monthly amounts the IRS allows for living expenses. National standards cover food, clothing, and other items, and out-of-pocket health care, and the IRS allows those amounts without questioning what was actually spent. Local standards cap housing and utilities by county and vehicle operating costs by region, with a nationwide vehicle ownership allowance. Other necessary expenses, such as taxes, court-ordered payments, and health insurance, are allowed when documented. An expense above a standard must be verified, reasonable, and documented.
How does Form 433-A (OIC) calculate an offer in compromise?
Form 433-A (OIC) totals available equity in assets, applying the reductions printed on the form, and adds future remaining income. Remaining monthly income is multiplied by 12 if the offer will be paid in five or fewer payments within five months, or by 24 if it will be paid over 6 to 24 months. The sum is the minimum offer amount, the figure IRM 5.8.5 calls reasonable collection potential. The Form 656 booklet states that the IRS generally will not accept an offer when the debt can be paid in full through an installment agreement, equity in assets, or both. The application fee is $205, and a lump-sum offer requires 20 percent with the offer, both waived under the low-income certification.
Does a Collection Information Statement lead to currently not collectible status?
It can. The IRS says it may temporarily delay collection when a taxpayer cannot pay any of the debt, and it may ask for Form 433-F, 433-A, or 433-B and documents to verify income, living expenses, bank accounts, and property before granting that status. IRM 5.16.1 governs the currently not collectible determination. The debt is not forgiven, penalties and interest continue, the IRS may file a Notice of Federal Tax Lien, and the IRS may review the financial situation later and resume collection.
Should a lawyer prepare Form 433-A or 433-B?
I prepare the statement when a revenue officer is assigned, when a business owes employment tax, when there is equity in a home, a business, or retirement accounts, when income is self-employment or irregular, when an offer in compromise is the goal, or when the numbers will support an installment agreement or currently not collectible status only if the expenses are presented within the IRM rules. The form is signed under penalties of perjury, and the choice of form, the valuation of each asset, and the expense presentation decide the outcome the IRS computes from it. A wage earner with one job, one bank account, and expenses under the standards can complete Form 433-F from the instructions on the form.

Send the letter code and the date printed on it.

Tell me which form the IRS asked for, the balance and tax years on the most recent notice, and whether the account is yours or a business's. Send only a high-level summary.

Schedule an initial consultation

Requesting a consultation does not make Mr. Powell your lawyer, provide legal advice, or protect a deadline.

Law Office of Alexander Powell, PLLC. 1629 K Street NW, Suite 300, Washington, DC 20006.

What the IRS does with the statement.

The IRS employee who asked names the form.

Form 433-F

Form 433-A

Form 433-B

Form 433-A (OIC) and Form 433-B (OIC)

The expense standards decide most of the arithmetic.

Where a statement goes wrong.

Understating assets

Claiming expenses above the standards

Omitting accounts

Using stale numbers

Treating the signature lightly

How the statement drives the outcome.

What to gather before the form is filled in.

Income

Bank and investment accounts

Real property and vehicles

Monthly expenses

Business records