Blank Dtf 5 Template

The DTF-5 form, officially known as the Statement of Financial Condition, is a crucial document provided by the Department of Taxation and Finance. It must be completed by taxpayers who seek a payment plan, offer in compromise, or other proposals. This form gathers detailed financial information for determining eligibility and facilitating negotiations with tax authorities.

To begin the process of completing your DTF-5 form, please click the button below.

Article Guide

The DTF-5 form, officially known as the Statement of Financial Condition, serves a critical role for individuals and businesses navigating tax issues in New York. It must be meticulously filled out and submitted alongside requests for payment plans, offers in compromise, or any other proposals related to tax liabilities. Each taxpayer assessed is required to complete this form unless they are joint taxpayers; in those cases, both spouses may submit a single DTF-5. For businesses, the form must be completed not only for the entity itself but also for each individual deemed responsible. If you are making an offer to settle tax liabilities through an offer in compromise, a separate DTF-5 is necessary for every taxpayer submitting certain related forms. Comprehensive information about the taxpayer is required, covering personal details such as names, Social Security numbers, and contact information. It also delves into household demographics. Additionally, the DTF-5 asks for a thorough disclosure of assets, ranging from cash and bank accounts to real estate and vehicles, including market values and any associated debts or loans. Failure to provide complete and accurate information could delay your proposal, making it essential to approach this form with care and precision.

Form Sample

Department of Taxation and Finance	DTF-5
Department of Taxation and Finance
Statement of Financial Condition	(8/18)

Complete Form DTF-5 and include it with your request for a payment plan, offer in compromise, or other proposal. Form DTF-5 must be completed for each taxpayer assessed, except for joint taxpayers, where both spouses may submit one Form DTF-5. For a business, a Form DTF-5 is required for that business, and for each individual assessed as a responsible person. To make an offer in compromise, you must include a completed Form DTF-5 for each taxpayer who submits either a:

•Form DTF-4.1, Offer in Compromise for Fixed and Final Liabilities, or

•Form DTF-4, Offer in Compromise for Liabilities Not Fixed and Final, and Subject to Administrative Review.

You must answer all questions and provide all required attachments listed on page 10. If a question does not apply, mark an X in the Not applicable box, or enter N/A. If you need additional space, attach sheets and label them accordingly.

•Taxpayer information

Name of taxpayers: individuals or business		Date of birth	Social Security number

		Spouse’s date of birth	Spouse’s Social Security number

		Employer identification number (EIN)

	Home address			Telephone number

Mailing address (if different from above, or if a PO Box number is used)

	Business address			Telephone number

	Mailing address (if different from above, or if a PO Box number is used)

	Employer’s name, address, and telephone number

	Spouse’s employer’s name, address, and telephone number

Do you or your spouse have any business interests? (filed federal schedules C, E, F, etc.)	Yes
If Yes, enter details on page 5.

All other persons in your household or claimed as dependents

Name	Age	Relationship	Social	Can be claimed as		Contributes to
Name	Age	Relationship	Security number	a dependent?		household income?
			Security number	a dependent?		household income?

				Yes	No	Yes	No
				Yes	No	Yes	No
				Yes	No	Yes	No
				Yes	No	Yes	No
				Yes	No	Yes	No

•Taxpayer’s representative information

I have no representative

Name of representative, if any (attach Form POA-1, Power of Attorney, if required)

Telephone number

Address

Attach additional sheets if necessary.

Page 2 of 10 DTF-5 (8/18)

•Assets As of

Date

Enter the balance for each of the following, using the most current value. If any of the following amounts are negative, enter 0.

Cash on hand

Box (A) – Total cash on hand (also enter on page 7, line 1)

(A)

Bank accounts (domestic and foreign)			Not applicable

Name of financial institution	Type*	Account number	Balance

* Type may include: checking, savings,	Box (B) – Total balance (also enter on page 7, line 2)
money market, stored value cards, etc.

(B)

Do you rent a safe deposit box in your name, or in any other name?	Yes
If Yes, give name and address of bank:

Brokerage accounts					Not applicable

Institution or brokerage name	Type*	Account number	Market value	Less:	Net value
Institution or brokerage name	Type*	Account number	Market value	Loans, if any	Net value

* Type may include: stocks, bonds, other	Box (C) – Total net value (also enter on page 7, line 3)
investments, etc.

(C)

Retirement accounts					Not applicable

Institution or custodian name	Type*	Account number	Market value	Less:	Net value
Institution or custodian name	Type*	Account number	Market value	Loans, if any	Net value

* Type may include: 401K, IRA, pension,	Box (D) – Total net value (also enter on page 7, line 4)
profit sharing, etc.

(D)

Cash value of life insurance policies					Not applicable

Institution company name	Type*	Policy number	Cash value	Less:	Net value
Institution company name	Type*	Policy number	Cash value	Loans, if any	Net value
				Loans, if any

* Type may include: term, whole life, etc.

Box (E) – Total net cash value (also enter on page 7, line 5)

(E)

Attach additional sheets if necessary.

					DTF-5 (8/18) Page 3 of 10

Assets (continued) As of
Assets (continued) As of	Date
	Date

Accounts receivable						Not applicable

Name and address		Date recorded	Book value	Less:	Date pledged,	Net value
Name and address		Date recorded	Book value	Loans, if any	if applicable	Net value
				Loans, if any	if applicable

Box (F) – Total net value (also enter on page 7, line 6)

(F)

Inventory					Not applicable

Detailed description	Date recorded	Book value	Less:	Date pledged,	Net value
Detailed description	Date recorded	Book value	Loans, if any	if applicable	Net value
			Loans, if any	if applicable

Box (G) – Total net value (also enter on page 7, line 7)

(G)

Notes receivable					Not applicable

Name and address	Date recorded	Book value	Less:	Date pledged,	Net value
Name and address	Date recorded	Book value	Loans, if any	if applicable	Net value
			Loans, if any	if applicable

Box (H) – Total net value (also enter on page 7, line 8)

(H)

Valuable items, machinery, and equipment

Not applicable

(List any artwork, collections, jewelry, items in safe deposit boxes, tools, furniture, fixtures, etc. that you own fully or partially)

Description

Fair market value

Loan balance, if any

Box (I) – Total fair market value (enter Asset on page 7, line 9)	(I)
	$

Box (J) – Total loan balance, if any (enter Liability on page 7, line 18)

(J)

Attach additional sheets if necessary.

Page 4 of 10 DTF-5 (8/18)

Assets (continued) As of

Date

Real estate

Not applicable

(List any house, condo, co-op, timeshare, land, commercial property, etc. that you own fully or partially, located inside and outside of the country)

Complete address	Description*	Owners	Current fair	Mortgage balance,	Unpaid property
Complete address	Description*	Owners	market value	if any		taxes
			market value	if any		taxes





Box (K) – Total fair market value (enter Asset on page 7, line 10)			(K)
			$
Box (L) – Total mortgage balance (enter Liability on page 7, line 19)				(L)
				$
* Description may include: primary residence,						(M)
vacation home, rental property, etc.	Box (M) – Total unpaid property taxes (enter Liability on page 7, line 20)				$
Foreclosure proceedings:					Not applicable
Are foreclosure proceedings pending on any real estate which you own or have an interest in?				....................................	Yes	No
If Yes, please give locations of the real estate:
Was the New York State Tax Department made a party to the suit?					Yes	No

Vehicles (List any cars, boats, motorcycles, trucks, aircraft, etc. that you own)					Not applicable

Year, make, and model	Plate number or	Mileage	Owners	Fair market value	Loan balance
Year, make, and model	Reg. number	Mileage	Owners	Fair market value	Loan balance
	Reg. number

Box (N) – Total fair market value (enter Asset on page 7, line 11)	(N)
	$

Box (O) – Total loan balance (enter Liability on page 7, line 21)

(O)

Leased vehicles (List any cars, boats, motorcycles, trucks, aircraft, etc. that you lease)

Not applicable

Year, make, and model

Plate number or

Reg. number

Mileage

Lessee name(s)

Date of lease

Term of lease

Attach additional sheets if necessary.

				DTF-5 (8/18)		Page 5 of 10

Assets (continued) As of
Assets (continued) As of	Date
	Date

Interest in trust or estate					Not applicable
Are you the grantor, donor, or trustee for any trust?					Yes	No
Are you the beneficiary of any trust or estate?					Yes	No
Do you have any life interest or remainder interest, either vested or contingent, in any trust or estate?					Yes	No
If Yes to any of the above, furnish a copy of the instrument creating the trust or estate. Also, complete the table below.

Name of trust or estate			Annual income you received	Present value of trust or	Value of your
Name of trust or estate			from this source	estate	interest
			from this source	estate	interest


		Box (P) – Total value of your interest (enter Assets on page 7, line 12)			$	(P)
					$
Business interests (from page 1, if you marked Yes)					Not applicable

If you or your spouse have ownership in any business, complete the table below. You must complete this section if you:

•filed federal schedules C, E, F, and other federal business forms filed by an individual in the preceding 3 years.

•received federal schedules K-1 in the preceding 3 years.

•are a shareholder of a business that filed federal Form 1120, U.S. Corporation Income Tax Return, in the preceding 3 years.

Business name

Employer

identification number

Type of

business*

Ownership percentage

Annual cash contributed**

Annual cash

received**

Value of your investment***

Box (Q) – Total value of your investments (enter Assets on page 7, line 13)

(Q)

*List all types of businesses, including sole proprietorships, partnerships, S corporations, C corporations, etc.

**Annual cash contributed or received may include: Shareholder or partner contributions or distributions, etc.

***Value of your investment may include: Your share of net worth or your partner capital account, etc.

Contingent claims or legal actions

Not applicable

(Potentially receivable or collectable, such as pending insurance claims, settlements, etc.)

Name of payer(s)

Date you expect to

receive funds

Dollar amount

Box (R) – Total dollar amount (enter Assets on page 7, line 14)

(R)

•Increase in value

What is the prospect of an increase in value of any of your assets and your present income? Provide a detailed explanation.

Attach additional sheets if necessary.

Page 6 of 10 DTF-5 (8/18)

•Disposal of assets

Not applicable

Did you transfer any assets with a fair market value of $500.00 or more during the period beginning with the
start of your proposal’s tax period and the present?	Yes	No

If Yes, attach a copy of the applicable transfer document (i.e. sales agreement, closing statement, HUD-1 statement, etc.). Also complete the table below. List all applicable transactions, including:

•transfer or sale of real estate

•transfer or sale of business interests

•assets that were transferred for less than fair market value

•disposal of any of the above

Asset type and description	Relationship of transferee	Date of transfer	Fair market value	Dollar amount you
Asset type and description	Relationship of transferee	Date of transfer	when transferred	received
			when transferred	received

•Judgments As ofNot applicable Date

Name of creditor(s)

Date recorded

Where recorded

Dollar amount of

judgment filed

Current balance due on judgment

Box (S) – Total balance due on judgments (enter Liability on page 7, line 22)

(S)

Bankruptcy

Not applicable

Are bankruptcy or receivership proceedings pending?	Yes
If a corporation or other business, is it in the process of liquidation?	Yes

No No

Unlawful activities

Not applicable

Is the liability you are trying to compromise related to a crime for which you pleaded or were found guilty?		Yes
Have you (or any one of you) been convicted of any crime involving unlawful possession or acquisition of property
	or income obtained by fraud, theft, or other illegal means within the last 5 years?	Yes
Are you the subject of, or defendant in, any pending criminal or grand jury action or proceeding which may involve
	or affect in any way, your right, title, or interest to any real or personal property whether or not listed herein?	Yes

If Yes to any of the above, provide details:

Attach additional sheets if necessary.

		DTF-5 (8/18) Page 7 of 10

•Statement of assets and liabilities As of	Date	pages 2 through 6)
		Values (from

Assets		Amount

1.Cash on hand (from page 2, Box (A))

2.Bank accounts (from page 2, Box (B))

3.Brokerage accounts (from page 2, Box (C))

4.Retirement accounts (from page 2, Box (D))

5.Cash value of life insurance (from page 2, Box (E))

6.Accounts receivable (from page 3, Box (F))

7.Inventory (from page 3, Box (G))

8.Notes receivable (from page 3, Box (H))

9.Valuable items (from page 3, Box (I))

10.Real estate (from page 4, Box (K))

11.Vehicles (from page 4, Box (N))

12.Interest in trust or estate (from page 5, Box (P))

13.Business interests (from page 5, Box (Q))

14.Contingent claims or legal actions, receivable (from page 5, Box (R))

15.Other assets (list)

Total assets	$
Liabilities	Amount

16.New York State tax liabilities (not already included in Judgments on page 6)

17.Federal tax liabilities (not already included in Judgments on page 6)

18.Loans against valuable items (from page 3, Box (J))

19.Mortgage balances (from page 4, Box (L))

20.Unpaid property taxes (from page 4, Box (M))

21.Loans against vehicles (from page 4, Box (O))

22.Balance due on judgments (from page 6, Box (S))

23.Accounts payable

24.Credit card balances payable

25.Notes payable

26.Contingent claims and legal actions payable

27.Other liabilities (list)

Total liabilities

Attach additional sheets if necessary.

Page 8 of 10 DTF-5 (8/18)

•Household income and expenses – individual

Enter your household’s gross monthly income, including income from you, your spouse, significant other, children, and others who contribute to the household.

Monthly gross receipts or income	Name of source		Amount

Salaries, wages, commissions of applicant(s)
Salaries, wages, commissions of household members
Dividends
Interest
Net business income from all sole proprietorships and single-member LLCs (from
federal schedule Cs)

Distributions from partnerships and S corporations (from your attached federal schedules K-1,
the partner or shareholder cash distributions you received on an average monthly basis)*

Net proceeds from sales of securities and other investments ((stocks, bonds, mutual funds,
real properties, etc.) on an average monthly basis)*
Income from annuities and pensions
Income from rents and royalties
Income from trusts and estates
Social Security
Welfare
Unemployment
Gifts
Money from relatives
Other income (list)




Total monthly household income:		$
Monthly expenses	To whom paid		Amount
Monthly expenses	(and relationship)		Amount
	(and relationship)
Food, clothing, and miscellaneous (such as housekeeping supplies, personal care products)*
Housing (rent or mortgage payment, plus property taxes, home insurance, maintenance, dues, or fees)
Utilities (electricity, gas, other fuels, trash collection, water, cable, phone)
Vehicle loan and lease payments
Vehicle operating costs (maintenance, repairs, insurance, fuel, registrations, licenses, inspections,
parking, tolls, etc.)*
Public transportation costs (fares for mass transit such as bus, train, ferry, taxi, etc.)*
Health insurance premiums
Out-of-pocket health care costs (prescription drugs, medical services, and medical supplies like
eyeglasses, hearing aids, etc.)*
Court-ordered payments (alimony, child support, etc.)
Child or dependent care (daycare, home health care, etc.)
Life insurance premiums
Taxes (monthly cost of federal, state, and local tax, etc.)
Debt service payments (monthly payment for loans where you pledged an asset as collateral; do not
include payments on unsecured debt such as credit cards.)
Other expenses (list)






Total monthly household expenses:		$
* You may provide reasonable estimates for certain income and expenses on an average monthly basis.

Attach additional sheets if necessary.

DTF-5 (8/18) Page 9 of 10

•Income and expenses – business

If this proposal is from a business, enter the information below for the last two calendar (fiscal) years and most recent interim period (year-to-date). Attach a detailed statement of carryover and carryback loss intentions. If you do not intend to use this offset, attach a full explanation.

			Most recent interim period
Gross receipts or income	Year before last	Last year		(year-to-date)
Gross receipts or income	20	20			, 20

Gross sales or receipts (net of returns and allowances)
Less: Cost of goods sold
Gross profit
Dividend income
Interest income
Gross rents
Gross royalties
Ordinary income (loss) from partnerships, estates and trusts, if applicable
Net farm profit (loss) (federal schedule F (Form 1040))
Gains from sales of assets (federal Form 4797))
Capital gain net income (federal schedule D (Form 1120))
Other income (list)

Total income	$	$	$
			Most recent interim period
Deductions	Year before last	Last year		(year-to-date)
Deductions	20	20			, 20

Compensation of officers
Guaranteed payments to partners
Salaries and wages (not deducted elsewhere)
Pension, profit-sharing, retirement plans, etc.
Employee benefit programs
Rents
Repairs and maintenance
Taxes and licenses
Depreciation, amortization, depletion
Bad debts
Interest expense
Contract labor, commissions, and fees paid
Legal and professional services
Car and truck expenses
Travel, meals, and entertainment
Contributions, charitable giving
Other operating expenses (list)

Total deductions	$	$	$
Total capital contributed by shareholders, partners, or owners
of the business	$	$	$
Total distributions or dividends paid to shareholders, partners, or
owners of the business	$	$	$

Annual benefit paid to principal officers and owners – Enter the total annual benefit paid to each of the principal officers and owners of the business. Annual benefit may include, but not be limited to, the following sources: wages, guaranteed payments to partners, shareholder/partner distributions, management fees, commissions, and shareholder/partner loans received from the business.

Name and title		20	20	20

	, President
	, Vice President
	, Treasurer
	, Secretary

Attach additional sheets if necessary.

Page 10 of 10 DTF-5 (8/18)

•Attachments

Items 1, 2, and 3 must be attached; items 4 through 12, if applicable, must also be attached.

Failure to provide these returns, statements, and documents will cause immediate rejection of your compromise request, request for payment plan, or other proposal.

You must attach:

1. Federal returns for the preceding three years, with all schedules and statements attached. If you were not required to file, include an explanation. In addition:

•for all sole proprietorships or single-member LLC’s (Schedule C), also include the balance sheets for the preceding three years, as of each year-end. These balance sheets may be self-prepared.

•include all federal schedules K-1 from Form 1120S or Form 1065, or both, for the preceding three years, as applicable.

2. Complete credit reports issued by a credit bureau dated within 30 days of this submission.

3. All bank account statements, brokerage account statements, and retirement account statements for the preceding 12 months.

•If you receive certain statements on a quarterly basis, provide the four most recent quarterly statements for the applicable account(s).

•If you receive certain statements on an annual basis, provide the most recent annual statement for the applicable account(s).

You must attach, if applicable:

4. Federal application to compromise, with the results.

5. Recent mortgage or home equity loan statements(s) dated within 30 days of submission. The statement(s) must show monthly payment amounts and current balance outstanding. We may request a real estate appraisal.

6. All mortgage indentures and conveyances, as grantor or grantee, for the preceding 10 years.

7. Lease agreements, both as landlord and tenant.

8. Loan agreements, both for note(s) receivable and note(s) payable. Include the security/collateral agreements for all secured loans.

9. Contracts of sale of any assets having a fair market value of over $500.00 within the last five years. For example, sales agreement, closing statement, HUD-1 statement, etc.

10. Copies of legal instruments related to pending claims (insurance or otherwise), rights to sue, subrogations, assignments, and other assets.

11. Bankruptcy discharge papers, if applicable.

12. For any business (corporation, partnership, s corp, non-profit organization, professional corp, etc.): We may request the audited, reviewed, or company-prepared financial statements for the preceding three years. In addition, we may request an Accounts Receivable Aging Report for any business.

•Declaration

I declare that I have examined the information given in this statement and, to the best of my knowledge and belief, it is true, correct, and complete, and I further declare that I have no assets, owned either directly or indirectly, or income of any nature other than as shown in this statement. I make this statement with the knowledge that a willfully false representation is a misdemeanor punishable under New York State Penal Law section 210.45.

I authorize the New York State Department of Taxation and Finance (DTF) to contact certain third parties, including but not limited to financial institutions and consumer credit reporting agencies, and to obtain my consumer credit report for the purpose of verifying the information I provided to DTF for determining my eligibility for an installment payment agreement or other payment terms. In addition, I authorize DTF to use my Social Security number when requesting my credit history from consumer reporting agencies or when verifying the information provided. I understand that DTF will not notify me about which third parties, if any, are contacted by DTF as part of this review process.

Taxpayer’s signature(s)

Date

Attach additional sheets if necessary.

⇩ PDF

Document Specifications

Fact Name	Description
Purpose	The DTF-5 form, also known as the Statement of Financial Condition, is used to provide a detailed overview of an individual's or business's financial status when applying for a payment plan, offer in compromise, or other proposals to the New York State Tax Department.
Taxpayer Requirement	Each taxpayer assessed must complete Form DTF-5. Joint taxpayers may submit a single DTF-5, while businesses must submit a form for each individual responsible for the business's debts.
Associated Forms	To make an offer in compromise, the DTF-5 must accompany Form DTF-4.1 or Form DTF-4, depending on the specifics of the proposed compromise.
Attachment Requirement	All questions on the form need to be answered completely. If additional space is necessary, attach extra sheets and label them appropriately.
Question Format	If a question does not apply to the taxpayer, marking an X in the "Not applicable" box or entering N/A is required.
Governing Laws	The DTF-5 is governed by New York State tax laws related to debt resolution, particularly within the context of taxpayer financial disclosures.

Steps to Filling Out Dtf 5

Completing the DTF-5 form involves a series of straightforward steps to ensure that all necessary information is properly documented. Gather your materials before starting, as some sections require detailed financial data. When finished, submit the completed form alongside any relevant proposals.

Enter Taxpayer Information: Fill in your name (or business name), date of birth, and Social Security number. If applicable, provide your spouse’s information as well.
Provide Contact Details: Include your home address, telephone number, and mailing address, if different. Additionally, list your business address and employer details.
State Household Members: List all individuals living in your household along with their ages, relationships, Social Security numbers, and if they can be claimed as dependents.
Taxpayer’s Representative: If you have a representative, add their name, telephone number, and address. Attach Form POA-1 if required.
Document Assets: As of the specified date, record the value of cash on hand, bank accounts, brokerage accounts, and retirement accounts. Ensure you note the balance and check the applicable boxes for any safe deposit boxes and negative balances.
Inventory Other Assets: Include details about accounts receivable, inventory, notes receivable, valuable items like machinery and art, and real estate. Document their fair market values and any loans against them.
List Vehicles: Provide a description of owned and leased vehicles, including year, make, model, and fair market value. Document loan balances where applicable.
Trust and Estate Interests: If relevant, indicate your role in any trusts or estates. Provide details about any annual income received and the present value of these interests.
Business Interests: If you or your spouse have interests in a business, fill out the table concerning ownership percentage, contributions, and annual cash received.
Contingent Claims: If there are any potential legal actions or claims, document them with the payer’s name, expected date of receipt, and dollar amount.
Increase in Value: Write a brief explanation regarding the potential increase in value of your assets and current income. Attach additional sheets if necessary.

Once all sections are completed, review the form to ensure accuracy. Gather any required attachments and submit them as directed.

More About Dtf 5

What is the purpose of Form DTF-5?

Form DTF-5, known as the Statement of Financial Condition, is primarily used to provide a comprehensive overview of a taxpayer's financial situation. It is required when requesting a payment plan, submitting an offer in compromise, or other proposals to the New York State Department of Taxation and Finance. This form must be completed for each taxpayer involved in the tax matter, except for joint taxpayers who can use a single form. For businesses, a separate DTF-5 is needed for the business itself and for every individual deemed responsible for tax liabilities.

Who needs to complete Form DTF-5?

Every taxpayer who is assessed or involved in a tax assessment must complete Form DTF-5. For joint taxpayers, one form suffices for both spouses. If a business is being assessed, the business must submit a form, along with a DTF-5 for each individual identified as responsible in the assessment. When making an offer in compromise, it is vital to include a completed DTF-5 for all taxpayers submitting offers under Form DTF-4.1 or Form DTF-4.

What information is required on Form DTF-5?

Form DTF-5 requires detailed taxpayer information, including names, Social Security numbers, and addresses. It gathers data on household members and dependents, as well as information about assets and liabilities. Taxpayers must disclose their cash on hand, bank accounts, real estate, vehicles, and any business interests. For each asset category, the most current value must be reported. In instances where specific questions do not apply, taxpayers should mark the appropriate "Not applicable" box or write "N/A". Additional sheets may be attached for further details.

What if I need more space to answer questions on Form DTF-5?

If the space provided on Form DTF-5 is insufficient for a taxpayer's responses, they can attach additional sheets. Each attached sheet should be clearly labeled to indicate what information it contains. This allows taxpayers to provide comprehensive details necessary for the Department of Taxation and Finance to assess their financial condition accurately.

Common mistakes

Incomplete Information: Failing to fill out all required sections of the DTF-5 form can lead to delays. Ensure every question is answered and every relevant section is complete.
Incorrect Attachments: Not including necessary documents or attachments specified on page 10 can result in processing issues. Double-check that you have attached everything required.
Ignoring "Not Applicable": If a question does not apply to you, do not leave it blank. Mark an X in the "Not applicable" box or write N/A where indicated. This keeps your submission clear.
Misreporting Assets: Listing incorrect values for your assets can lead to complications. Always use the most recent and accurate values when filling out financial details.
Omitting Household Information: Forgetting to include all members of your household, including dependents, can affect your financial assessment. Provide the names, ages, and relationships of all relevant individuals.
Failing to Label Additional Sheets: If you need to use extra sheets for additional information, make sure to label them clearly. This helps ensure your information is organized and easy to track.
Not Reporting Business Interests: If you or your spouse have business interests, you must disclose this. Be thorough in providing details about any federal schedules filed.
Ignoring Contact Information: Always include accurate contact details. If there are changes, such as different mailing addresses or phone numbers, make sure to note them clearly.

Documents used along the form

The DTF-5 form, officially known as the Statement of Financial Condition, is an essential document used to assess a taxpayer's financial standing in relation to various proposals, such as a payment plan or offer in compromise. When submitting this form, certain additional documents may be necessary to provide comprehensive financial information. Below is a list of related forms and documents that are often used alongside the DTF-5.

Form DTF-4: This form is utilized for an offer in compromise for liabilities that are not fixed and final. Taxpayers must provide detailed reasons for their inability to pay the full amount due, along with supporting financial documentation.
Form DTF-4.1: This variation of Form DTF-4 caters explicitly to fixed and final liabilities. It requires taxpayers to demonstrate their financial situation and justify their request for reduced payment.
Form POA-1: The Power of Attorney form allows a taxpayer to designate a representative to act on their behalf regarding tax matters. If a representative is involved in the submission of the DTF-5, this form must be attached.
Income Statements: These documents detail the income generated by the taxpayer over a specific period. They provide evidence of the taxpayer's financial stability and are usually necessary to assess the ability to pay taxes.
Asset Documentation: This includes appraisals or statements regarding the value of various assets such as real estate, vehicles, and financial accounts. Accurate asset documentation is crucial for the accurate completion of the DTF-5 form.

Understanding the requirements associated with the DTF-5 form and its accompanying documents is vital for taxpayers seeking to navigate their financial obligations effectively. Proper preparation and accurate submissions can significantly influence the outcomes of their proposals to the Department of Taxation and Finance.

Similar forms

The DTF-5 form serves a significant role in financial disclosures for taxpayers. One similar document is the IRS Form 433-A, which is used for individuals to report their financial condition to the IRS, often during collection and installment payment discussions. Like the DTF-5, the 433-A requires detailed information about assets, liabilities, and monthly income and expenses. Both forms serve to provide a snapshot of a taxpayer's financial standing. The information collected helps tax authorities make informed decisions regarding payment plans or compromises.

Another comparable form is the IRS Form 433-B, which is specifically designed for businesses. This form allows businesses to present their financial condition to the IRS. In a manner akin to the DTF-5, the Form 433-B requires disclosure of business assets, liabilities, and income. Both forms aim to outline the financial capabilities of the taxpayer or business, assisting authorities in assessing the appropriate course of action for tax liabilities.

Form DTF-4.1, known as the Offer in Compromise for Fixed and Final Liabilities, is also similar to the DTF-5. To submit an Offer in Compromise under this form, taxpayers must accompany their applications with a completed DTF-5. Both forms require thorough disclosures about the taxpayer's financial condition and ability to pay. This correlation ensures that tax authorities have a complete view of a taxpayer's details when considering compromise offers.

IRS Form 656 is another relevant document, as it is used to make an Offer in Compromise with the IRS. This form requires significant financial information to be disclosed, similar to the DTF-5. Taxpayers must detail their financial situation to demonstrate why their offer should be accepted. Like the DTF-5, it enables the government to assess the taxpayer’s capabilities and aspirations towards tax relief.

The Statement of Financial Position (SFP) is another document that shares similarities with the DTF-5 form. It summarizes a taxpayer's financial position at a given time, detailing assets, liabilities, and equity. Generally used for broader financial analysis compared to the DTF-5, an SFP also seeks to provide clarity on a taxpayer's financial health, allowing for informed decisions regarding liabilities and obligations.

In addition, many banks and lenders require a Net Worth Statement, which outlines an individual's or business' financial assets and liabilities. The structure of a net worth statement is comparable to that of the DTF-5, as both assess financial health by documenting what is owned versus what is owed. Both documents are essential tools in evaluating creditworthiness and financial responsibility.

The Financial Disclosure Statement used in bankruptcy filings also draws parallels with the DTF-5. This document requires individuals to disclose their financial situation, including income, expenses, assets, and debts. Like the DTF-5, the bankruptcy disclosure aims to give a complete picture of the debtor's financial condition, guiding the court’s decisions on discharging debts.

A Budget Statement can also be compared to the DTF-5 form. While a budget statement outlines expected income and expenses for a future period, both documents require a comprehensive understanding of current financial conditions. This enables better planning and adjustments, especially in financial distress cases, revealing liquidity and solvency issues similar to those the DTF-5 addresses.

Lastly, the Asset and Liability Statement is often utilized in various financial scenarios, such as loan applications or estate planning. This document summarizes a person's or entity's total assets and liabilities. As with the DTF-5, providing this information gives a comprehensive overview of financial standing, aiding in the assessment of creditworthiness, and contributing to informed decision-making processes.

Dos and Don'ts

When filling out the DTF-5 form, it is important to follow specific guidelines to ensure accuracy and completeness. Here is a list of dos and don’ts to help you through the process:

Do complete one DTF-5 form for each taxpayer assessed, except for joint taxpayers who may submit one form.
Do provide all required taxpayer information, such as name, date of birth, and Social Security numbers.
Do answer all questions on the form. If a question does not apply, mark it with an "X" in the Not applicable box or indicate "N/A."
Do attach additional sheets if you need extra space to provide information required on the form.

Don’t leave any questions unanswered; this may delay processing your request.
Don’t enter a negative number for assets; if the amount is negative, write "0" instead.
Don’t forget to include all necessary attachments listed on page 10 of the form.
Don’t submit incomplete information; take your time to ensure accuracy and completeness.

Misconceptions

Misconception 1: Only individuals need to complete Form DTF-5.

While individuals must fill out Form DTF-5, businesses are also required to submit the form. Each individual assessed as a responsible party in a business must complete their own form as well, ensuring a clear financial condition for all parties involved.

Misconception 2: Completing the form is optional when applying for a payment plan.

This is not the case. Completing Form DTF-5 is mandatory if you want to request a payment plan, offer in compromise, or any other proposal. Without this form, your application may be incomplete, leading to delays or denials.

Misconception 3: If a question doesn’t apply, you can skip it.

It is essential to indicate if a question does not apply to you. You can do this by marking an X in the "Not applicable" box or entering N/A. This lets the reviewer know that you accurately completed the form.

Misconception 4: You can use one Form DTF-5 for multiple taxpayers.

Each taxpayer assessed must complete their own Form DTF-5. However, if you and your spouse file jointly, you can submit one form together. This special condition applies only to joint filers.

Misconception 5: I don't need to include attachments.

If there are additional details or if you need more space for your answers, it’s crucial to attach extra sheets and label them properly. Failing to provide full information can lead to complications with your application.

Misconception 6: Only current assets are required.

While current assets are critical, the form also asks for details about various categories of assets, such as retirement accounts or valuable items. The thoroughness of your disclosure will be vital to a clear financial picture.

Misconception 7: The fair market value of assets does not need to be precise.

Providing accurate fair market values for your assets is mandatory. Underestimating or overestimating values can affect how your application is viewed, potentially influencing the outcome.

Misconception 8: I can submit Form DTF-5 after my application.

Form DTF-5 must accompany your initial application. Submitting it after the fact can delay the review process and may lead to a rejection of your application, so it’s crucial to include it from the outset.

Misconception 9: My representative can fill out the form for me without my involvement.

While a representative can assist you, as the taxpayer, your involvement is vital. You must provide accurate and complete information to ensure your financial situation is conveyed correctly. If needed, a Power of Attorney (Form POA-1) must be attached for your representative to act on your behalf.

Key takeaways

Form DTF-5 is essential for individuals and businesses seeking a payment plan or offer in compromise with the Department of Taxation and Finance in New York.
Each taxpayer must fill out a separate Form DTF-5 unless filing jointly, in which case a single form can be used for both spouses.
For businesses, a Form DTF-5 is required for the business itself and for every individual deemed responsible for the business’s obligations.
When submitting an offer in compromise using either Form DTF-4 or DTF-4.1, ensure that a completed Form DTF-5 is included for each taxpayer involved.
Complete all questions on the form, and provide any required attachments. If a question does not apply, mark it accordingly.
When reporting assets, be as precise as possible and use current values. Negative amounts should be recorded as \$0.
It is crucial to identify all household members and dependents, as this information can affect eligibility for payment plans or compromises.
Include detailed information about business interests if applicable, including any federal schedules filed in recent years.
If you have any legal claims pending, be sure to report those as they can impact your financial condition and potential offers.