How effective Form 433A

[Nashville]

A non-filer for many years is somehow my client. He is surprisingly co-operative, more than most.

His employer has been notified of levy action, and has been told to levy his paycheck but to leave the guy $300/wk to live on.

Getting relief by filing a 433A? Looks to me that this simply provides the IRS more information stream than benefit. Guy is single,
no children, no mortgage, etc. How does this give the guy more than $300/wk to live on? And there is a lot of personal information
that really shouldn't concern anyone. Tailor-made to go into a data bank somewhere.

What has YOUR experience been with Form 433A?

(Please don't respond by telling me the guy should never have allowed himself to fall into that position to begin with. We already know that.)

[dehcpa]

433a

The Form 433A is very effective. In all of the cases I've dealt with the Form 433A has been a requirement and if completed properly will lead to a payment plan the client/taxpayer can live with. The client/taxpayer may have to be counseled that cable tv, college tuition payments for dependents, vacations to far off places, BMW car payments, etc. are not acceptable to the IRS and some belt tightening may/will have to occur. Unless the client/taxpayer qualifies for a streamlined plan, the Form 433A is a fact of life.

deh cpa

[mscash]

433-a

A non-filer for many years is somehow my client. He is surprisingly co-operative, more than most.

His employer has been notified of levy action, and has been told to levy his paycheck but to leave the guy $300/wk to live on.

Getting relief by filing a 433A? Looks to me that this simply provides the IRS more information stream than benefit. Guy is single,
no children, no mortgage, etc. How does this give the guy more than $300/wk to live on? And there is a lot of personal information
that really shouldn't concern anyone. Tailor-made to go into a data bank somewhere.

What has YOUR experience been with Form 433A?

(Please don't respond by telling me the guy should never have allowed himself to fall into that position to begin with. We already know that.)

The $300 (or close to it) is the amount that is exempt from levy under IRC 6334. When I was a revenue officer, I felt that was adequate to pay for groceries while you made peace with IRS. The Collection Statement, Form 433-A (or 433-F for ACS cases) is used to determine the taxpayer's ability to pay from assets or wages. The required payment will be his gross income minus allowable expenses following IRS expense standards. You can count on him getting more than $300 per week after completeing it. If he owes less than $25,000 he can ask for a streamlined agreement and pay a bit less than 2% of the balance per month.