IRS Form 433-B: Collection Information Statement for Businesses

Introduction to the IRS Form 433-B

What is it used for?

The Internal Revenue Service (IRS) Form 433-B Collection Information Statement for Businesses is used when a business owes federal taxes and cannot pay them in full.

Who can file Form 433-B?

The types of businesses that can file Form 433-B are: partnerships, corporations, and a limited liability companies classified as a corporation. This form provides information to the Internal Revenue Service in regards to the ability of the business to pay its federal tax liability.

Three options to resolve business tax liabilities

There are several options for resolving business tax liabilities that require the completion of a 433-B.

  • One option for resolving business liabilities is to request an installment agreement with the Internal Revenue Service.
  • Another option for a business is to request a non-collectable status to delay paying taxes due to financial hardship.
  • The final reason for a business to fill out a Collection Information Statement for Businesses is an offer in compromise with the Internal Revenue Service.

How to fill out Form 433-B?

There is a different form to fill out for this type of resolution called a 433-B (OIC).

The first part of the form is for basic business information such as contact information, payroll information, the type of entity, and if the business accepts various types of payments. The IRS also requests to know about any payroll service, lawsuits, bankruptcy, transfers of assets, and any other business affiliations. This gives the IRS information regarding how the business is currently functioning. The business also must disclose all assets and liabilities such as cash, bank accounts, notes receivable, investments, available credit, real property, vehicles, and equipment.

The final portion of the Internal Revenue Service Form 433-B Collection Information Statement for Businesses is the income and expense statement for the business. This portion will show the Internal Revenue Service the business’ net profits over a given period of time.

What’s next after submitting the form?

Based on the business information provided to the IRS on Form 433-B Collection Information Statement for Businesses, the IRS will make a determination of the business’ ability to pay federal tax liabilities. The IRS will review the income, expenses, and assets of the business to determine if the business can resolve its federal tax liability based on an installment agreement, a currently non-collectable status, or requesting an offer in compromise with the Internal Revenue Service.

Do my business qualify to apply?

To find out if you qualify for filing Form 433-B, contact us at (877) 829-2455 or schedule a initial consultation today. As with all forms, the more practice that you get with preparing them, the more successful you become.