Form 433-H – IRS Installment Agreement & Financial Disclosure

I still remember the first time I had to help a client pull together a complete financial snapshot for the IRS. She had pay stubs in one folder, bank statements in another, and a running list of bills on sticky notes. You might be in the same spot. If you owe more than you can pay right now and the IRS is asking for a monthly plan, Form 433-H is the form that bundles your payment plan request with a full look at your finances, so the IRS can set terms that fit your situation. The latest version is labeled “Form 433-H, Installment Agreement Request and Collection Information Statement,” revised in March 2025.

Quick truth, not a scare tactic: if your balance is larger or you need more time than a simple plan allows, the IRS usually wants a financial statement. Form 433-H is one way they document it.

Key Takeaways

• Form 433-H is the IRS “Installment Agreement Request and Collection Information Statement.” It lets you propose a monthly payment and shows your income, expenses, and assets in one package. The current revision is March 2025.
• Simple Payment Plans typically cover balances up to 50,000 with no financial statement required. If you are above that, or cannot pay within 72 months, you will likely need a 433-series financial disclosure such as 433-H.
• Payroll deduction plans use a different form, Form 2159, Payroll Deduction Agreement. If you choose payroll deductions, the IRS sets it up with your employer using Form 2159, not Form 433-H.
• User fees changed. If you set up an online direct debit plan, the current setup fee is 22. Other payment methods cost more. Fees can vary by method and situation.
• Always submit to the address or fax on your IRS notice or as instructed by the IRS employee on your case. Do not send a financial statement to a general IRS address.

What Is IRS Form 433-H?

Form 433-H is a combined request and disclosure. You propose a monthly installment agreement and you show the IRS what you can realistically afford. That means entering your identifying information, the tax years involved, your proposed monthly payment, and detailed financial data, including income, bank accounts, investments, vehicles, and real property. The IRS uses this to evaluate whether your proposal makes sense and whether other options like a Partial Payment Installment Agreement or temporary “Currently Not Collectible” status apply. The official IRS listing confirms the form name and the March 2025 revision.

If you qualify for a simple plan, you may never touch this form. The IRS’s Simple Payment Plans cover most individuals who owe 50,000 or less and are current on filings. No financial statement, no lien determination step. If you do not qualify, that is when the IRS turns to 433-series statements to see your full picture.

Who Should Use Form 433-H?

When your balance or timeline is beyond “simple”

If you owe more than the Simple Payment Plan limit or you cannot full pay within about 72 months, the IRS will usually want a financial statement. Form 433-H helps you document your ability to pay and propose a workable monthly amount. IRS guidance on streamlined agreements still centers on the 25,000 to 50,000 tiers and the 72‑month horizon, which is why larger balances or longer schedules tend to trigger a request for a 433-series statement.

• Above the simple thresholds, expect to disclose income, necessary living expenses, bank accounts, investments, vehicles, and real estate.
• If cash flow is tight, 433-H can support a Partial Payment Installment Agreement proposal, which pays what you can until the collection statute runs, subject to periodic review.

If you want payroll deduction payments

There is a common mix-up here. Payroll deduction is not set up on Form 433-H. Payroll deduction agreements are done on Form 2159 between you, your employer, and the IRS. In fact, when you request a plan using Form 9465, the instructions tell you to attach a completed Form 2159 if you want payroll deductions for certain balances. Use 433-H to disclose finances, use 2159 if you choose payroll deductions.

Hardship and compliance cases

Maybe you are getting letters, interest is piling up, and you are worried about levies. Accurate documentation through a 433-series form is how you show hardship, justify lower payments, or ask the IRS to pause collection. If your proposal will not fully pay within the normal window, the IRS will look for that financial statement, and Form 433-H is one way they collect it.

Documents to Gather Before You Start

You control the outcome by getting the numbers right. Pull together income proof, bills, and asset statements so the entries on 433-H match your real life.

• Income: last 3 months of pay stubs, or 12 months of profit and loss if self‑employed.
• Bank accounts: the latest 3 months for all accounts, showing balances and average activity.
• Assets: investment and retirement statements, vehicle payoff letters, property tax bills, and recent appraisals or comps if available.
• Living expenses: housing, utilities, transportation, insurance, medical, childcare, and any court‑ordered payments.
• IRS letters: have the notice number, submission address or fax, and a due date handy. If your notice tells you to call and review your info by phone, follow that direction.

I always tell clients, your story should match your documents. That is how you avoid delays and earn a smoother review.

Step-by-Step, How To Complete Form 433-H

Start with your documents on the table so every line you enter is backed by proof. The form is fillable, so you can type directly and save a clean copy for your records.

The workflow at a glance

Section	What you’ll enter	Tips
Identification	Names, SSNs, address, phone, the IRS notice, tax periods, balance	Copy details exactly from the IRS letter to avoid misrouting.
Assets	Cash on hand, bank accounts, investments, vehicles, real property	Use current balances and fair market values, then back them with statements.
Income	Wages, business income, other inflows	Match pay stubs and bank deposits so totals reconcile.
Expenses	Housing, utilities, food, transport, insurance, medical, childcare	List necessary living costs. Keep bills ready to show they are real and ongoing.
Proposal	Your monthly payment amount and date	Choose a date that fits your budget cycle and does not collide with major bills.

Practical tips I use with clients

• Put deposits and pay stubs side by side. If payroll shows 3,800 twice a month, bank deposits should support it. If not, add a note.
• For vehicles, include the VIN, mileage, payoff, and a reasonable private sale value.
• For property, pull the current mortgage statement and a comp or valuation to estimate equity.
• If you have court‑ordered payments, attach the order.
• Keep a copy of everything you send.

How much should you propose monthly

The IRS still evaluates payment terms against a 72‑month yardstick under the streamlined rules. If your plan will not pay in that window or by the collection statute date, that is one reason 433-series statements come into play. Use your documents to propose a number you can actually pay every month. It is better to be realistic than to default.

Pro move: if you owe 50,000 or less and you can full pay within 72 months, you can often skip the financial statement entirely by applying for a Simple Payment Plan in your IRS Online Account. That is faster and cheaper.

Fees, Payment Methods, and What To Expect

• If you set up a long‑term plan online with direct debit from your bank account, the current setup fee is 22.
• If you choose non‑automated payments, the fee is 69 when set up online.
• Fees and rules are summarized in the Form 9465 instructions and the online payment agreement page. Low‑income options may reduce or waive fees.

Interest and late‑payment penalties continue until you pay the balance in full, so paying more when you can helps. The IRS will tell you when your first payment is due after they approve your plan.

Where and How To Submit Form 433-H

• Follow your letter. Use the address or fax number on your notice, or provide the information by phone if the notice instructs you to do that. Do not mail a financial statement to a generic IRS address.
• If an IRS employee is handling your case, ask how they want to receive your Form 433-H and supporting documents.
• Keep proof. Save a full copy, signature page, and your mailing or fax confirmation.

If you want payroll deduction

If you prefer payroll deductions through your employer, that is set up on Form 2159, Payroll Deduction Agreement. The IRS Internal Revenue Manual and the Form 9465 instructions both point to Form 2159 for payroll deduction arrangements. You can still use Form 433-H for your financial disclosure, but payroll deductions themselves are not requested on 433-H.

Related IRS Forms and Picking the Right One

Sometimes a shorter or deeper form is a better fit. Here is a quick comparison you can skim.

433-H vs 433-F vs 433-A vs 2159

Form	When it is typically used	What it covers	Good to know
433-H	Installment Agreement Request plus Collection Information Statement	Identity, proposed payments, full financials in one package	Current revision March 2025. Used when a financial statement is needed alongside your request.
433-F	Collection Information Statement, short form	Income, expenses, basic asset info	Often requested by notice or phone when the IRS needs a quick financial update.
433-A	Collection Information Statement for wage earners and self‑employed	Deeper dive into assets, expenses, and business details	Used in field cases or more complex reviews.
2159	Payroll Deduction Agreement	Employer withholds agreed amount and remits to IRS	This is the payroll deduction setup form, not 433-H.

Common Questions We Hear

Do I always need Form 433-H for a payment plan?

No. If you owe 50,000 or less and can pay within the collection window, you can usually apply for a Simple Payment Plan online without any financial statement. If you owe more, need longer, or ask for a partial payment plan, expect to provide a 433-series statement such as 433-H.

Is Form 433-H the same as a payroll deduction agreement?

No. Payroll deduction uses Form 2159 with your employer. You can use Form 433-H to disclose finances and propose terms, but payroll withholding itself is set up on 2159.

What if I make a mistake or forget a document?

Fix it fast. Resend the corrected page and the missing proof to the address or fax on your notice, or give the information by phone if the notice tells you to do that. Keep a full copy and your transmission proof.

How are monthly amounts judged?

Streamlined agreements are still anchored to a 72‑month benchmark and the collection statute date. If you cannot full pay within that time, the IRS looks at your financials to decide on a Partial Payment Installment Agreement and will review it periodically.

Fill, Sign, and Save Your Form Cleanly

• Use a reliable PDF editor to complete the official IRS fillable form.
• Confirm SSNs, totals, and the proposed monthly payment.
• Insert your digital signature where allowed, date it, save the final PDF, and keep a copy.

Tip from experience, keep a “433” folder with all statements you used to prepare the form. If the IRS asks a follow-up question, you can answer in minutes, not days.

Real-World Pitfalls to Avoid

• Guessing values. Use current statements for bank and investment balances, vehicle payoff letters, and a reasonable valuation.
• Double counting income. Make sure what you list as wages matches deposits.
• Missing court‑ordered payments. If it is on your budget each month, document it.
• Submitting to the wrong place. Your notice controls the destination.

If you are a firm preparing multiple 433-series packages during peak season, discipline beats heroics. The teams that standardize workpapers, naming, and checklists finish faster and avoid back‑and‑forth with revenue officers.

For firm leaders, a quick note

Accountably supports CPA and EA firms with controlled offshore delivery for production work that must be right the first time, including standardized workpapers and documentation for IRS financial statements. We integrate into your workflow, add review layers, and protect deadlines without burying partners in review. Use us sparingly where capacity and consistency matter most.

A Clear, Actionable Checklist

Prep your file

• Identity documents and your IRS notice with the case or notice number.
• Last 3 months of pay stubs, or 12 months of P&L if self‑employed.
• Last 3 months of bank statements for every account.
• Retirement and brokerage statements with current balances.
• Mortgage statement, property tax bill, and a comp or valuation for equity estimates.
• Vehicle payoff letters, VIN, mileage, and a reasonable private sale value.
• Current bills for housing, utilities, insurance, transportation, childcare, and medical.
• Any court‑ordered payments with the order attached.

Complete the form

• Enter your identifying details, tax periods, and total unpaid tax.
• List assets and account balances with the supporting statement dates.
• Enter monthly income and necessary expenses.
• Propose a monthly payment you can make on the same date every month.
• Sign, date, save, and print a copy for your records.

Decide how you will pay

• Online direct debit is the simplest and least expensive user fee at 22 when set up online.
• If you prefer payroll deductions, complete Form 2159 with your employer. Attach it when required by the instructions.

433-H vs Streamlined Plans, A Quick Decision Path

1. Is your total balance, including penalties and interest, at or under 50,000, and can you finish within the collection window?

• Yes, apply for a Simple Payment Plan in your IRS Online Account. No 433 statement needed.
• No, go to step 2.

2. Will your proposal full pay within about 72 months or before the collection statute ends?

• Yes, you may still need a financial statement if your balance is higher or your case is in a field setting.
• No, prepare a 433-series statement such as 433-H to support a Partial Payment Installment Agreement. Expect periodic reviews.

FAQs

What is the difference between Form 433-H and Form 9465?

Form 433-H combines your plan request with your financials. Form 9465 is a stand‑alone request for an installment agreement. For simple cases under 50,000, you can often apply online instead of filing 9465 on paper. If you choose payroll deduction for certain balances, 9465’s instructions tell you to attach Form 2159.

Can I e‑sign and email my form?

You can fill and sign the IRS fillable PDF. How you submit depends on your notice and your IRS contact. Some cases are reviewed by phone, some by mail or fax. Follow the directions on your specific notice to avoid delays.

What happens after I submit?

Processing times vary. If the plan is approved, the IRS will confirm terms and your first due date. Interest and late‑payment penalties continue until you finish paying, so send extra when you can.

Will I get a lien?

Streamlined plans generally do not require a lien determination, but the IRS can still file a lien at its discretion. Outside streamlined criteria, financial statements and lien determinations are more common.

Final Pointers From the Field

• Accuracy beats speed. A clean, well‑documented 433-H is more likely to pass review without extra questions.
• Keep everything. Scan your form, your statements, and your mailing or fax proof.
• If something changes, say so. Income, expenses, or asset changes can affect your plan.
• If your numbers truly show hardship, ask about a Partial Payment Installment Agreement or temporary “Currently Not Collectible” status. Expect periodic reviews.

Short Case Story

A small business owner came in with a balance over the simple thresholds. We mapped out income and necessary expenses, documented equipment loans and vehicle payoffs, and built a realistic monthly proposal. Because everything reconciled to bank statements and bills, the agent accepted a lower monthly amount than the owner first feared. The key was alignment between the story and the documents.

Compliance, Security, and Trust

• Always use the latest IRS forms and listings, and check the posted date. Form 433-H was posted with a March 2025 revision.
• For payroll deduction, remember that it is Form 2159, not 433-H. If that is your preference, involve your employer early so pay cycles and amounts are clear.
• If you are a firm, organize files with clear naming, standardized workpapers, and internal checklists so reviews are faster and cleaner. That keeps partners out of endless review loops and protects deadlines.

Conclusion

You can do this. Form 433-H is simply a way to show the IRS what you can afford and to request terms that match your real life. Start with accurate documents, fill carefully, pick the payment method that fits your budget, and submit exactly as your notice instructs. If you qualify for a Simple Payment Plan, take the faster route online and skip the financial statement altogether. If you are outside those limits, a complete 433-H can help you secure reasonable terms and steady breathing room.