Mar 5, 2008

Owe Tax Debt? The IRS wants more of your personal information!

The IRS has recently changed the information it needs for those who owe tax debts. When you owe a tax debt and you are not able to pay the tax in full in 120 days, the IRS wants information to justify why you cannot pay the entire amount. The information you file is a financial statement known as the "Collection Information Statement." It is an IRS Form 433A if you are an individual (now for an individual with a sole proprietorship also) and a Form 433B if you are a business.

In short, it has many changes but an overall theme: more information to the IRS. I believe this is also an effort to get an e-filing of the form (if you notice it is formatted to allow checks into the validity and completion of the data). Intrusive information such as driver's license number, e-commerce sources (PayPal, etc.), merchant accounts (i.e. if you accept American Express, VISA, etc.), your living whereabouts if you lived overseas in the last ten years, detailed asset information, and more are being requested.

Also, the emphasis of this form as a legal document, signed under penalties of perjury, is highlighted. Remember, this is a disclosure to the IRS and subject to civil and criminal penalties if it is incorrect.

Before you go about resolving your tax debt, you should consider a professional in dealing with the IRS. A professional can help you steer through the levy and collection enforcement maze and to the best possible resolution.

1 responses:

Anonymous,  September 24, 2008 at 9:40 PM  

Jim, I would like for you to blog more, I miss it !

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