Dealing with the IRS can be a pain for even the most seasoned professionals. You want to focus on what matters to yourself, your family, and your business, but the constant back-and-forth over your taxes can slow you down.
This is especially true for individuals who end up overwhelmed by their tax debt and are forced into a repayment plan. When the IRS gives you a required monthly payment amount for a repayment plan and you can’t afford those payments, you need to submit Form 443-A.
We previously talked about how to avoid these forms, but when you’re out of options it’s important to understand what you do and don’t need to disclose.
What You Need to Report
In determining what you can pay, the IRS asks for financial and asset information. This includes a list of certain assets, bank accounts, income, and expenses. Form 433-A includes:
- Sources of Income
- Bank Accounts
- Investments and Investment Accounts
- Digital Assets
- Life Insurance Policies
- Real Property
- Mortgage Details
- Vehicles
- Furniture and Personal Effects
- Business Assets
- Self-Employed Information
Form 433-B pertains to businesses, business assets, income, and expenses including most of which are on the above list.
What is Exempt
The list of information is extensive. However, there are certain assets that do not need to be reported to the IRS on these forms. The less you need to include, the less the IRS will consider which will result in a smaller repayment amount.
The Internal Revenue Code allows taxpayers and businesses to exclude the value of these assets pursuant to Internal Revenue Code § 6334. Exemptions include:
- Fuel, Provisions, Furniture, and Personal Effects up to $6,250 in value
- Books and Tools of a Trade, Business, or Profession up to $3,125 in total value
- Unemployment and Worker’s Compensation Benefits
- Child Support
- Undelivered Mail
Let Our Team Take Care of These Forms For You
The sheer amount of information required by the IRS to verify that you are able to complete a repayment plan for your tax debt can be overwhelming. If you hire professional help you may be able to avoid disclosing much of this information. The team at Robert V. Boeshaar, Attorney at Law, can fill out these forms for you. Handing these tasks over to a professional avoids the anxiety and confusion that often comes with getting out of trouble with the IRS.
Robert V. Boeshaar Attorney at Law, LL.M.,PLLC
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