If you owe the IRS they will require your financial disclosure by asking you to complete a "Collection Financial Statement". The Form to send them is a Form 433. The IRS may even request the Form. (See Notice LT27) There are several varieties of Form 433.
The IRS will want to know your income, debts, assets & ability to pay. If you want to show them you can't pay you must provide a lot of evidence.
There are 2 Collection Information Statements for Individuals and 1 Collection Information Statement for Businesses. Here they are:
- - Collection Information Statement Individuals (short Form)
- - Collection Information Statement Individuals (long form)
- - Collection Information Statement Businesses
The Form 433A has 2 extra pages for self-employed persons to show their current income and expenses.
If you are considering an Offer in Compromise the IRS has variations of the same forms for you to complete and submit. They require more information to process the Offer but the essence of your financial disclosure will be similar.
The Income items you reveal on these forms are usually easily identifiable, unless you are self-employed. But, all of these forms require you to attach documents & evidence supporting the expenses which you claim as offsets against your Income.
A major problem is that the IRS will only allow standard expenses from the Bureau of Labor & Statistics, regardless of your actual expenses. So, you must carefully craft these forms to adjust to the IRS demands as well as adequately present your claimed expenses.
This takes a LOT of work. So, we have designed "Webinars" which teach you how to properly complete these forms to your advantage.
You must expect to put in a lot of time & effort to correctly present your case to the IRS!