IRS Form 433-D, or the Collection Information Statement for Wage Earners and Self-Employed Individuals, is a form the Internal Revenue Service (IRS) uses to gather information about a taxpayer’s financial condition. It is commonly used by taxpayers who are self-employed or have multiple businesses and is used to help the IRS determine the taxpayer’s ability to pay back taxes, penalties, and interest.

How Your Data is Compiled

Form 433-D is divided into several sections, including information about the taxpayer’s income, expenses, assets, and liabilities. The form also includes a section for taxpayers to provide additional information or explanations about their financial situation.

To complete Form 433-D, the taxpayer must gather financial information such as bank statements, pay stubs, and tax returns. The form should be filled out as accurately and thoroughly as possible, as the information provided will be used to determine the taxpayer’s ability to pay back taxes.

Section 1 of Form 433-D requests the taxpayer’s personal information such as name, address, and Social Security Number.

Section 2 is for the Income of the taxpayer; this includes the following information:

• Wages, salary, and tips
• Business income or loss
• Rental income or loss
• Farm income or loss
• Capital gains or losses
• Other income, such as unemployment compensation or social security benefits

Section 3 is for the Expenses of the taxpayer; this includes the following information:

• Rent or mortgage payments
• Utilities
• Groceries
• Clothing
• Transportation
• Medical and dental expenses
• Taxes
• Insurance
• Other expenses

Section 4 is for the Assets of the taxpayer; this includes the following information:

• Cash on hand
• Bank accounts
• Investment accounts
• Real estate
• Automobiles
• Household goods
• Jewelry
• Other assets

Section 5 is for the Liabilities of the taxpayer; this includes the following information:

• Mortgages
• Car loans
• Credit card balances
• Other loans or debts

Collection and Verification

In addition to the information provided on the form, the taxpayer may also submit additional documentation to support their financial situation. This can include bank statements, pay stubs, and tax returns.

Once Form 433-B is completed, it should be mailed to the IRS along with any supporting documentation. The IRS will use the information provided on the form to determine the taxpayer’s ability to pay back taxes and will contact the taxpayer with their findings.

It is important to note that under the Internal Revenue Code section 6331(d), the IRS can initiate a levy on a taxpayers wages, salary, and other income, bank account, and other assets if the taxpayer fails to pay their taxes. This means that the IRS can legally seize assets such as wages, bank accounts, and property to pay off any outstanding tax debt.

Additionally, under the Internal Revenue Code section 6103, the taxpayer has the right to request and receive an explanation of any information provided to the IRS. This means that taxpayers have the right to understand how the IRS arrived at their determination of the taxpayers ability to pay and how it was used to establish a payment plan or collection actions.

Lastly, under the Internal Revenue Code section 6320 and 6330, the taxpayer has the right to a hearing before the IRS can proceed with a levy on their wages, salary, and other income, bank account, and other assets. The hearing is an opportunity for the taxpayer to contest the proposed levy and provide additional information about their financial situation to the IRS.

Summary

IRS Form 433-D is a financial statement form used by the IRS to gather information about a taxpayer.

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