The Internal Revenue Service has many forms and schedules, so many that it can become confusing as to which form is needed for certain situations. The article below drafted by a Denver tax lawyer discusses a few common Internal Revenue Service forms that would be used in resolving an IRS tax debt.
Form 433A: Form 433A is an individual collection statement, and can be considered an individual financial statement. The Internal Revenue Service requires individuals to complete this statement if the individual is requesting an installment agreement, and owes over a certain amount of money or the taxpayer wishes to pay a certain amount. This collection statement requests the necessary information the IRS uses to make a determination and provides the IRS with information that can be used to enforce collection of the tax through a bank levy, wage garnishment or seizure of assets if necessary. Form 433A asks for information such as: name, address, employer, ownership interests in businesses, bank account information, retirement and investment account information, real property ownership and leases, car ownership and leases, personal property, wages and other income and, expenses. Further, if an individual is self employed, pages 5 and 6 of the 433A request information regarding the businesses assets and income.
Form 433: Form 433B is a collection information statement for a business. The IRS would require that a business complete a Form 433B if the business owes taxes and is requesting an installment agreement. Multi member LLCs, partnerships and corporations would complete Form 433B. Form 433B requests the name and address of the business, individual owners, ownership percentage, business bank account information, assets owned and leased by the business and business income & expenses.
Form 656: Form 656 is the form used when submitting an offer in compromise to the Internal Revenue Service. On Form 656 you state the taxpayer’s name, tax periods you are requesting to settle, the reason for the offer in compromise, the offer in compromise amount and terms for payment of the offer in compromise amount. Additionally, you can state your extenuating circumstances on Form 656 and where you will obtain the monies to pay the tax settlement amount. Form 656 is submitted with your offer in compromise application fee and the initial offer in compromise payment.
A Denver tax lawyer at The McGuire Law Firm has prepared many forms for clients to resolve our clients tax debts and tax issues. Mr. McGuire is experienced in preparing these forms and discussing the forms with our clients and the Internal Revenue Service.
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