The IRS sometimes requires Form 433-F to determine a taxpayer’s eligibility for specific installment agreements. If you qualify for a streamlined installment agreement with the IRS you won’t have to submit Form 433-F to have your payment plan accepted. However, if you don’t qualify for the streamlined approach, most likely you’ll have to complete Form 433-F (or a similar form) in order to work out a payment plan with the IRS.
Which Expenses are Allowed?
Well, the IRS has its own standards to determine your cash flow which is available to meet household living expenses. They determine what are “reasonable and necessary” expenses. The “necessary expenses” are generally payments that allow you to support yourself, your family’s health and welfare, and for the production of income. However, this expense does not apply to businesses.
Feel free to reach out if you need help completing a Form 433-F for the IRS.