IRS Form 433-B “Collection Information Statement for Businesses” Explained

IRS Form 433-B, Collection Information Statement for Businesses, is the financial statement the IRS uses to evaluate a business’s ability to pay a tax balance. It’s completed by corporations, partnerships, multi-member LLCs and other business entities, typically when a revenue officer is working the case. Sole proprietors and self-employed individuals report their business on the individual form, Form 433-A.

When Is Form 433-B Required?

• A business owes payroll, income or other taxes and wants an installment agreement
• The IRS is evaluating collection alternatives such as currently-not-collectible status
• A revenue officer needs a full picture of the business’s assets and cash flow

For a business offer in compromise, the related form is Form 433-B (OIC), which is filed with Form 656.

What Form 433-B Asks For

• Business information: name, EIN, entity type, address, the nature of the business, number of employees, average gross monthly payroll and payroll frequency
• Owners and officers: partners, officers, LLC members and major shareholders, with ownership percentages and responsibility for paying taxes
• Other financial information: lawsuits, bankruptcies, related-party transactions, affiliations with other businesses and any recent transfers of assets
• Business assets: cash on hand, bank and investment accounts, available credit, accounts and notes receivable, real estate, vehicles and equipment, each with current value and loan balances
• Business income and expenses: typically monthly averages based on recent profit and loss statements, covering gross receipts, materials, wages, rent, supplies, utilities, vehicle costs, insurance, current taxes and other expenses

The form is signed under penalties of perjury by an authorized officer, partner or member.

Documents to Gather

• Recent bank statements for all business accounts
• Profit and loss statements and an accounts receivable aging report
• Loan and lease statements for real estate, vehicles and equipment
• Recent business tax returns and payroll tax returns
• Formation documents showing ownership

Why Accuracy Matters

The IRS uses Form 433-B to decide how much the business can pay and which assets could be levied. Overstated expenses or missing accounts can derail negotiations. When the debt includes unpaid payroll taxes, the information on Form 433-B can also come up in a Trust Fund Recovery Penalty investigation (Form 4180) against the individuals responsible.

Once a payment amount is agreed, the plan is usually put in writing on Form 433-D, Installment Agreement. For more, see Business Owners Owe Back Taxes? Actionable Steps.

Get Help From Diehl CPA

IRS collection and appeal procedures have strict deadlines, and what you submit becomes part of the record. Diehl CPA, led by Mark Diehl, CPA, CFE, represents taxpayers before the IRS and can prepare the forms, gather the documentation, and deal with the IRS for you. Learn about our tax relief services or contact us to talk through your situation.

This article is general information, not tax or legal advice for your specific situation. Updated October 2026.