IRS Form 433-B: Business Collection Info Statement

IRS Form 433-B assists businesses in resolving outstanding tax obligations through a standardized financial disclosure process. This article outlines each requirement to support accurate and timely financial information organization without guesswork or confusion, and to cut avoidable delays. Tasks are presented as structured, actionable steps suitable for business owners and managers to ease the process. The article uses plain language, concise lists, and relatable examples aligned with standard operational and recordkeeping practices.

For context, the form collects financial information on business income, including monthly and other sources. You also report business asset information, including business bank accounts, investment accounts, business equipment, and intangible assets. Available credit and liabilities appear alongside assets to present your business’s finances in a consistent snapshot. Complete, current numbers help the IRS assess resolution options appropriate to the business’s financial profile.

Before beginning, gather the employer identification number registered with the IRS, business name, and business address as filed. Confirm payment processors, reporting agent details, and methods for securely depositing payroll taxes, including schedules. We will explain line items, document proofs, and submission choices in simple, ordered sections for quick verification. If uncertainty remains, consider reviewing the draft with a qualified representative to prepare for the next steps.

What Is IRS Form 433-B?

IRS Form 433-B is the Collection Information Statement for Businesses, which the IRS uses to evaluate payment capacity for tax debt. The form gathers details on assets, liabilities, gross revenue, operating expenses, and tax obligations, including recurring and monthly income. Per the IRS Form 433-B (official PDF), filers disclose detailed figures for business asset information, business income, and monthly income. The PDF outlines section order, line items, and document expectations, which helps you prepare records efficiently. The form’s structure supports analysis based on the IRS’s collection standards and financial assessment policies.

• Purpose: The form documents a business entity’s financial situation so the IRS can measure repayment capacity.
  
  
• Identification: Filers enter the employer identification number, business name, and business address exactly as registered.
  
  
• Cash and accounts: The form requires disclosing business bank accounts, investment accounts, available credit, and savings.
  
  
• Assets: You list business equipment, real property, vehicles, and intangible assets accurately with realistic values.
  
  
• Revenue and expenses: The form records a representative period's business income, monthly income, and ordinary expenses.
  
  
• Documentation standards apply, including statements, contracts, and recent valuations that align with filed returns.
  
  
• Fully completed entries reduce follow-up and support accurate resolution assessment.
  
  
• Use cases: Common situations include negotiating a tax bill, addressing business back taxes, and supporting payment proposals with evidence.

Understanding the form’s structure allows businesses to organize required data correctly and identify relevant entries. Clear totals support consistent analysis and limit guesswork during review, which reduces processing delays. Accurate entries align your records with the form’s sections, encourage a focused discussion on payment terms, and demonstrate organized recordkeeping. We now address eligibility and timing so you know when the form applies and which entities should file it.

Who Must File IRS Form 433-B and When (Triggers & Eligibility)

Businesses file IRS Form 433-B when the IRS requests detailed financial information to evaluate collection options. The form applies when a business entity faces a tax bill, tax debt, or taxes owed that require structured resolution. Revenue Officers and the Automated Collection System request Form 433-B to verify assets, liabilities, business income, and monthly income. Accurate data confirms whether the business qualifies for an installment agreement, an Offer in Compromise, or CNC status.

C Corporation

The filing obligation for a C corporation focuses on corporate records and decision makers. The form lists business personnel, major shareholders, and ownership percentages tied to control and compensation. Officers report titles, duties, annual salary details, and contact information. The corporation supplies the employer identification number, business address, and telephone number exactly as filed. Where relevant, entries include accounts, business asset information, and other financial information needed for capacity analysis.

Filing triggers and timing

Filing occurs when the IRS requests the statement during payment plan discussions, lien evaluations, or after collection notices. Sole proprietorship cases use Form 433-A for individual taxpayers. Self-employed owners of entities disclose roles within the business filing. Partnerships, S corporations, and LLC members submit entity-level data separate from personal forms. Providing timely responses minimizes additional IRS requests and ensures evaluations reflect current financial records.

• Significant taxes owed or a new tax bill prompt an information request.
  
  
• A business that falls behind on payroll taxes often receives a formal demand for financial disclosure.
  
  
• Active enforcement, including levies or liens, can start a detailed review of business asset information.
  
  
• A request tied to Offers in Compromise requires documentation that supports reasonable collection potential.
  
  
• Cash flow changes, mergers, or other business affiliations trigger updates to demonstrate current capacity.

Careful alignment of entity type and roles prevents misclassification. Clear identification of owners, officers, and agents supports accurate analysis of the ability to pay. Prompt, complete responses position your organization for the next stage of review.

Documents to Gather Before You Start

Organizing financial records before completing IRS Form 433-B improves accuracy and reduces review delays. The IRS uses your documentation to confirm values and timelines related to business income, assets, liabilities, and expenses. 

Each item you report on the form should match supporting evidence, such as bank statements, loan documents, and valuation reports. Providing complete records supports a clear financial profile of your business and strengthens your submission.

• Business bank accounts: Provide statements for all active and inactive accounts. Include checking, savings, and merchant accounts with full account numbers and balances.
  
  
• Profit and loss statements: Submit current P&L statements covering at least the past six months. These reports should reflect gross monthly income and business expenses consistently.
  
  
• Investment accounts: Include brokerage and custodial account statements. Show holdings, account numbers, and current market values.
  
  
• Business equipment: Prepare purchase records, depreciation schedules, or third-party valuations for machinery, computers, and other tangible assets.
  
  
• Payment processors and reporting agents: List card payment processors or online sales processors. Include documentation that confirms daily deposit activity and integration with the business’s bookkeeping system.

Records should clearly show ownership, dates, and amounts. Omissions or mismatched entries may prompt follow-up requests or result in processing delays. Consistently document monthly income, outstanding debts, and business asset information to help the IRS determine your payment capacity.

• Business address and telephone number: Match your filed business name and contact information to prior returns and IRS notices.
  
  
• Mailing addresses and employer identification number: Confirm current contact records and provide backup for legal formation details.
  
  
• Depositing payroll taxes: Include proof of EFTPS enrollment or third-party processing confirmations for payroll tax compliance.
  
  
• Credit cards accepted: Provide recent merchant statements or processing summaries.
  
  
• Other business affiliations: List related entities, ownership percentages, and shared liabilities or revenues where applicable.

A well-prepared document package ensures that Form 433-B accurately reflects your business’s finances. Solid documentation makes IRS reviews more efficient and strengthens your position in payment plan negotiations or hardship claims.

Step-by-Step: Section 1 — Business Information on IRS Form 433-B

Section 1 of IRS Form 433-B establishes the core identity of the business entity. It includes foundational information required to match IRS records and to ensure consistency with prior tax filings. Completing this section accurately helps prevent avoidable delays or rejections caused by mismatched details. Every entry should reflect the entity’s current legal and operational status as filed with the IRS and state agencies.

Complete Form 433-B

• Business name: Use the full legal name registered with federal and state authorities. Include any names of those “doing business as” (DBA) on record.
  
  
• Employer identification number (EIN): Enter the nine-digit federal tax identification number assigned to the business.
  
  
• Business address: Provide the physical address of the business. P.O. boxes are generally not accepted unless specifically approved.
  
  
• Business telephone number: Use a primary business line that the IRS can call for verification or clarification.
  
  
• Business entity: Indicate whether the business is a C corporation, S corporation, partnership, or limited liability company (LLC). Select the correct classification box and enter the formation type.

Operational and Contact Information

• Date of establishment: Provide the exact month, day, and year the business was legally formed.
  
  
• Deposit frequency: Specify how often federal payroll taxes are deposited (e.g., monthly or semi-weekly).
  
  
• Payment processors: List each service provider the business uses to process payments, including Stripe, Square, or others.
  
  
• Credit cards accepted: Identify all card types accepted, such as Visa, Mastercard, and American Express.

Each response in this section must be current and consistent with tax records. Any inconsistencies may lead to an IRS request for clarification. After completing this section, proceed to personnel details, ownership disclosures, and related business affiliations.

Step-by-Step: Sections 2–3 — People, Litigation, Loans, and Transfers

Sections 2 and 3 of IRS Form 433-B request detailed information about individuals with authority, ownership, or legal accountability in the business. These sections also document outstanding legal matters, financial ties, and historical transactions that could affect the business’s financial standing. Accurate disclosure helps the IRS understand how key personnel and affiliated entities contribute to operations and liability.

Business personnel: The form requires the names, titles, addresses, and contact details of all officers, partners, and members with decision-making authority. Each person’s role must be clearly defined, especially in cases where multiple owners or executives hold overlapping responsibilities.

Annual salary: Each responsible party’s current compensation must be reported, including wages, benefits, and any variable income such as commissions or bonuses. This figure helps the IRS understand personal draw levels from the business.

Social Security number: Each listed officer or owner must provide a valid Social Security number for identification purposes. This ensures cross-referencing with individual tax records during review.

Other business affiliations: Officers or partners with ownership interests in other businesses must disclose those relationships. This includes controlling subsidiaries, affiliated entities, or interests in related industries.

Major shareholders and ownership percentages: List shareholders with substantial ownership for corporations. Include each shareholder’s percentage stake and their influence on decisions.

Reporting agent: If a third-party payroll provider manages tax deposits, their information should be included here. Clearly note effective dates and the scope of authority.

Asset transfers over the past ten years: List assets transferred for less than fair market value within the past decade. Include dates, recipients, and rationale.

Additional documentation: Attach supporting documents where relevant, such as ownership agreements, court filings, or internal meeting minutes.

Thorough disclosure in Sections 2 and 3 provides context for the IRS to evaluate leadership accountability and operational continuity. These entries also help establish transparency across all decision-making and financial channels within the business.

Step-by-Step: Sections 4–5 — Assets, Liabilities, Income, and Expenses

Sections 4 and 5 of IRS Form 433-B present the business's financial structure. These sections cover tangible and intangible assets, current liabilities, monthly income, and operating expenses. The IRS reviews this information to determine whether the business has sufficient equity or cash flow to address existing tax debt. Accurate disclosures in these sections allow the IRS to assess the financial situation based on current valuations and recent transactions. Each figure must correspond to verifiable documentation.

Business Asset Information

Businesses must report all business asset categories with detailed values. This includes business bank accounts, investment accounts, equipment, vehicles, real estate, and intangible assets. Each asset must reflect a current, verifiable valuation method, such as appraisals or market comparisons. Depreciation schedules may support fixed asset value, especially in manufacturing or service industries. For intangible assets, list proprietary software, domain names, intellectual property, or other items with future commercial value.

Business Income and Expenses

This section requests business and monthly income data over a consistent period—generally three, six, or twelve months. Gross monthly income includes total revenue before deductions, from all sources, including other income streams such as rebates, royalties, or commissions. Expenses must reflect ordinary business operations, such as rent, utilities, payroll, supplies, and insurance. Allocations for mixed-use expenses must be clearly documented. If the business has experienced seasonal fluctuations, the chosen period should reflect average monthly performance.

Each entry in Sections 4 and 5 forms the foundation for calculating the business's reasonable collection potential. This directly affects IRS decisions regarding installment agreements, Offers in Compromise, or Currently Not Collectible status. Submitting clear, accurate values reduces follow-up inquiries and allows the IRS to focus on capacity—not discrepancies. With the financial picture established, the next step is to prepare the submission method and package the form with supporting documents.

Submission Options and Addresses for IRS Form 433-B

After completing IRS Form 433-B, businesses must choose a delivery method that ensures both timely receipt and documentation of submission. Selecting the correct method prevents unnecessary delays and demonstrates proactive compliance. Submission requirements vary depending on how the form was requested and whether a revenue officer is assigned to the case. Using the appropriate mailing addresses or delivery methods is essential based on your business’s location and the nature of the IRS contact.

Action List for Submitting Form 433-B

• Verify the mailing address listed on the IRS notice. The correct address may differ depending on the IRS division or the state where your business is located.
  
  
• Assemble a complete packet in proper order. Include the original Form 433-B, supporting documentation, and all required attachments. Group related materials using clearly labeled dividers or cover sheets, particularly for multi-document submissions.
  
  
• Send the whole packet using certified mail with a return receipt requested. This provides tracking confirmation and serves as proof in case the IRS does not acknowledge receipt or if submission deadlines are challenged.
  
  
• Include accurate and current contact details. Double-check the business telephone number, mailing address, and any listed email for tax correspondence.
  
  
• Retain scanned or photocopied records of everything submitted. Keep these for internal recordkeeping, future correspondence, or audit responses.
  
  
• Use hand delivery only if coordinated with an assigned revenue officer. In-person delivery must be pre-approved and accompanied by identification and authorization documents.

The IRS does not allow electronic submission of Form 433-B. Businesses must prepare and send a complete, physical packet. Once submitted, monitor IRS communications and prepare to respond to any requests for clarification or additional details.

What Happens After You File IRS Form 433-B

Once IRS Form 433-B is submitted, the IRS begins a formal review process to determine whether your business has the financial capacity to resolve its tax liabilities. The agency evaluates all submitted documents, compares reported figures to tax account records, and determines whether the proposed resolution aligns with established collection policies. Processing timelines vary depending on case complexity and IRS workload.

Step-by-Step Review Process

1. Initial intake and verification: The IRS performs a completeness check to confirm that all required fields on the form are filled and supporting documentation is included. Omissions or conflicting entries may result in a request for clarification or correction.
   
   
2. Mathematical accuracy and consistency: Form calculations are reviewed to ensure that totals reconcile across sections. The IRS compares reported income streams and business asset disclosures against bank records, profit and loss statements, and tax returns.
   
   
3. Assignment to a collection function: Depending on the business’s total debt and the case's complexity, it may be assigned to a revenue officer or handled through the Automated Collection System.
   
   
4. Follow-up and document requests: If further information is needed, the IRS may contact you directly or through your representative to request additional documentation or clarification on submitted details.
   
   
5. Analysis and decision: The IRS determines whether the business qualifies for an installment agreement, Offer in Compromise, or temporary hardship relief.

Every step in this process requires consistency and traceability in the submitted financial records. Businesses that respond promptly and maintain alignment between reported data and documentation typically move through review more efficiently. The following section outlines determining which relief option best aligns with your financial structure.

Relief Paths Connected to IRS Form 433-B (Installment Agreements, OIC, CNC)

After reviewing IRS Form 433-B and the attached documentation, the IRS determines whether your business qualifies for a resolution method based on financial capacity. The most common options are installment agreements, Offers in Compromise (OIC), or Currently Not Collectible (CNC) status. Each option follows different eligibility standards and requires a tailored financial presentation using the information provided in the form.

Payment Options Overview

The chart below outlines the primary differences among the three resolution paths available through the IRS evaluation of IRS Form 433-B.

Offers and Terms

An Offer in Compromise calculation follows a specific formula determining available equity and future income. Asset valuations, income documentation, and supporting financials must align with the form to meet review standards. The procedures outlined in IRM 5.8.3 explain how the agency evaluates collection potential, asset equity, and financial hardship when reviewing Offers in Compromise.

The agency’s payment plans page outlines eligibility thresholds and available structures based on balance due, entity classification, and disposable income for businesses that qualify for installment agreements. Aligning the business’s relief strategy with data reported in IRS Form 433-B streamlines review and reinforces your business’s commitment to compliance. With clear documentation, stable records, and a well-supported request, the IRS can better evaluate a resolution supporting the agency’s interests and the business’s continued operation.

Common Errors on IRS Form 433-B and How to Avoid Them

IRS Form 433-B requires precision in every entry. Incomplete, outdated, or inconsistent information often leads to delays, additional correspondence, or complete submission rejection. Many errors result from misaligned financial data, missing affiliations, or unverified assumptions about required documentation. Ensuring all reported values match source records improves credibility and streamlines review.

Troubleshooting List

• Businesses frequently omit or misstate the legal structure, employer identification number, or business address. Always match this data to recent IRS filings and registration documents.
  
  
• Many filers report outdated purchase prices rather than current fair market values for business assets. Use current appraisals or supporting third-party documentation for business equipment, vehicles, and real property.
  
  
• Income fields are often completed without supporting documents. Reported income must match financial records, including deposits, statements, and documented revenue streams.
  
  
• Some businesses fail to list other business affiliations, especially when ownership is shared across multiple entities. These must be disclosed with full names, roles, and ownership percentages.
  
  
• Filers sometimes include personal expenses or fail to allocate mixed-use costs appropriately. Only report business-related expenses, supported with documentation and proper justification.

Avoiding these common mistakes helps reduce unnecessary IRS follow-up and preserves the accuracy of your submission. Review every section of Form 433-B alongside financial records to verify consistency. Completing this step before submission ensures the IRS receives a credible, well-documented financial profile for your business.

Frequently Asked Questions

What is the role of business personnel in Form 433-B?

Business personnel listed on Form 433-B include officers, partners, and LLC members who manage the business’s finances. The form requires names, titles, Social Security numbers, and ownership percentages for each individual with financial oversight. This information helps the IRS confirm who is responsible for compliance, recordkeeping, and reporting. Accurate reporting of business personnel ensures accountability and supports the agency’s review of the business’s financial health and capacity to pay taxes.

How does the IRS evaluate financial information on Form 433-B?

The IRS reviews financial information to determine whether the business can pay taxes or resolve liabilities through an approved program. This includes reviewing business income, assets, liabilities, and monthly income. Companies must provide documentation such as bank records, financial statements, and contracts. These materials help the IRS evaluate accuracy, identify trends, and assess whether the business’s financial health supports full or partial payment of the taxes owed.

Can a sole proprietor use Form 433-B?

Form 433-B is not used for sole proprietors. Instead, sole proprietors and self-employed individuals must complete Form 433-A, which includes personal and business financial data. Form 433-B is reserved for corporations, partnerships, and LLCs. Using the wrong form can result in delays or an IRS rejection. Filing the correct version ensures the IRS reviews the appropriate income sources and structure for the business type represented.

What does the IRS consider a valid payroll service provider?

A payroll service provider is a third-party vendor managing payroll tax deposits, wage reporting, and filings. Form 433-B asks for the provider’s name, address, and effective service dates. Businesses should provide documentation such as service agreements, deposit confirmations, or system screenshots. Using a payroll service provider demonstrates an organized payroll system and supports compliance with required tax deposit rules, especially in cases involving employment-related liabilities.

How does the IRS handle business back taxes after receiving Form 433-B?

The IRS evaluates Form 433-B to determine resolution eligibility in cases involving outstanding business tax liabilities. Depending on the business's financial profile, the IRS may approve a monthly payment plan, temporary hardship status, or an Offer in Compromise. The decision is based on available income, asset equity, and the business’s ability to meet future obligations: timely responses and thorough documentation support eligibility for available relief options.

What are the step-by-step instructions for completing Form 433-B?

Start with Section 1 to enter the business name, address, and employer identification number. Proceed through sections for business personnel, litigation, loans, assets, liabilities, income, and expenses. Complete each line with current financial data and provide documentation for each entry. Carefully review the totals, ensure consistency across sections, and organize documents for submission. Following these step-by-step instructions reduces errors and helps the IRS process your case more efficiently.

How does the IRS calculate the minimum offer for an OIC?

The minimum offer is calculated using the business’s available equity plus projected income. The IRS multiplies disposable monthly income by a set number of months, depending on whether the company chooses a lump sum or periodic plan. Supporting records must reflect current financial data and liabilities. Companies must provide documentation for each valuation to support their position. A well-documented submission supports the agency’s evaluation and enables consideration of reduced terms.