Taxpayers can use Form 9465, Installment Agreement Request to request consideration for a monthly installment plan if they cannot pay the full amount shown on the tax return. Taxpayers making payments on a current installment agreement cannot use Form 9465.
The IRS uses Form 433-F, Collection Information Statement to obtain current financial information for a wage earner or self-employed individual to determine if the taxpayer can satisfy an outstanding liability. The form is divided into eight sections. Taxpayers are required to list all accounts and/or lines of credit and information pertaining to wage earning. The following represent an overview of the sections housed on the form.
- Section A – Accounts/Lines of Credit
- Section B – Real Estate
- Section C – Other Assets
- Section D – Credit Cards
- Section E – Business Information
- Section F – Employment Information
- Section G – Non-Wage Household Income
- Section H – Monthly Necessary Living Expenses
Accounts and lines of credit also include reports of stocks and bond holdings. You must list all real estate you currently own and/or plan on purchasing. You will need the county description. “To determine equity, subtract the amount owed for each piece of real estate from its current market value” (IRS.gov, “Form 433-F, Collection Information Statement,” 8/19/2013). Other assets include the ownership of cars, boats, recreational vehicles; insurance policies; paintings, coin collection, or antiques; and business assets such as tools, equipment, inventory, and intangible assets such as domain names, patents, and copyrights. “To determine equity, subtract the amount owed from its current market value” (“Form 433-F”).
List all credit cards whether you have a balanced owed or not. In addition, you must list accounts receivables owed to your business as well as information about business credit cards. Section F requires that you include employment information. On the other hand, Section G requires that you list non-wage income. According to Form 433-F, non-wage income may include net self-employment income, net rental income, and other income reported as distributions from partnerships and subchapter S corporations. Other income also includes “agricultural subsidies, unemployment compensation, gambling income, oil credits, rent subsidies, Social Security and interest dividends, IRAs, and pension income” “(Form 433-F”). This list is not comprehensive.
Lastly, monthly necessary living expenses are those figures for housing and utilities, rent, transportation, public transportation, medical, health insurance, out-of-pocket health care expenses, child/dependent care, estimated tax payments, life insurance, delinquent state and local taxes, student loans, court ordered payments, and other expenses as determined acceptable by an IRS collections representative.