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March 30, 2025
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OUR DAUGHTER SUDDENLY RECENTLY BECAME DISABLED. HER INCOME IN 2024 WAS GOOD. NOW ITS ZERO. SHE CANNOT PAY ANY OF THE TAX DUE IN APRIL. SHOULD SHE USE 433-A?

  • March 30, 2025
  • 1 reply
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BEFORE THIS HER INCOME WAS EXCELLENT AND SHE ALWAYS RECEIVED REFUNDS. THIS YEAR SHE OWES TAXES BECAUSE SHE WITHDREW IRA MONEY FOR A DOWN PAYMENT ON A HOME SHE QUICKLY HAD TO SELL.

Best answer by SabrinaD2

Given your daughter's sudden change in income and inability to pay taxes, using IRS Form 433-A might be a good option. Here's a guide:

  • Form 433-A Purpose: This form is used to provide the IRS with financial information to determine how an individual can satisfy an outstanding tax liability
    • Your daughter can use Form 433-A if she owes income tax and cannot pay it in full. This form is often used when applying for an Offer in Compromise (OIC) or setting up a payment plan
    • She will need to provide detailed information about her income, expenses, assets, and liabilities. Given her current zero income, this will help the IRS understand her financial hardship
  • Submitting the Form:  IRS Form 433-A cannot be submitted through TurboTax. It must be mailed directly to the IRS.

You can download IRS Form 433-A here

For more detailed guidance, you can refer to the IRS website and Wiggam Law.

1 reply

SabrinaD2Answer
March 30, 2025

Given your daughter's sudden change in income and inability to pay taxes, using IRS Form 433-A might be a good option. Here's a guide:

  • Form 433-A Purpose: This form is used to provide the IRS with financial information to determine how an individual can satisfy an outstanding tax liability
    • Your daughter can use Form 433-A if she owes income tax and cannot pay it in full. This form is often used when applying for an Offer in Compromise (OIC) or setting up a payment plan
    • She will need to provide detailed information about her income, expenses, assets, and liabilities. Given her current zero income, this will help the IRS understand her financial hardship
  • Submitting the Form:  IRS Form 433-A cannot be submitted through TurboTax. It must be mailed directly to the IRS.

You can download IRS Form 433-A here

For more detailed guidance, you can refer to the IRS website and Wiggam Law.