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?

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.

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1 Best answer

Expert Alumni

Mar 30, 2025 5:25:29 AM

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.