IRS Form 433-B – Collection Information Statement (Businesses)

The IRS is watching closely to see if your business is one of the many that collectively owe billions in unpaid taxes yearly. In 2024 alone, the IRS collected over $60 billion in back taxes from businesses and individuals. For companies struggling with tax debt, getting back on track often starts with a single critical document: IRS Form 433-B.

This form, called the Collection Information Statement for Businesses, gives the IRS a detailed look at your business’s finances, including income, expenses, assets, and liabilities. Your information helps the IRS determine whether your business qualifies for relief programs such as installment agreements, direct debit payment plans, or even an Offer in Compromise to settle your debt for less than the full amount you owe. Completing the form accurately is the first step toward protecting your company from aggressive collection actions.

In this guide, we’ll explain what IRS Form 433-B is, why you may have received it, and the risks of ignoring it. We’ll also outline the available tax relief and resolution options, walk through how to respond, and share resources to help you confidently complete and submit the form. Whether your business is seeking to manage monthly income and expenses or negotiate with the IRS for a better payment plan, this article will provide clear next steps to help you resolve your tax debt and protect your business’s financial future.

What Is IRS Form 433-B?

IRS Form 433-B is the Collection Information Statement for Businesses. It is a detailed financial disclosure document that the IRS uses to evaluate a business’s ability to pay back taxes. The form collects information about your company’s income, expenses, assets, and liabilities so the IRS can determine the best way for you to resolve your tax debt.

You are typically required to complete Form 433-B when you owe the IRS more than you can pay immediately and are requesting a tax resolution option such as:

• Installment agreement or payment plan (including IBTF Express IA for employment tax issues)
  
  
• Direct debit agreement for predictable monthly payments
  
  
• Offer in Compromise (OIC) to settle your debt for less than the full amount.
  
  
• Currently Not Collectible status, which temporarily delays collection activity

Unlike individual taxpayers who file Form 433-A, businesses must use Form 433-B to disclose their financial condition. This allows the IRS to decide whether you are eligible for relief and to set fair payment terms based on what your company can realistically afford.

Below is a quick comparison to help distinguish between the two forms:

Comparison Table 1: Form 433-B vs. Form 433-A

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Understanding which form to use is critical—filing the wrong one can delay your case and put your business at greater risk of penalties and interest.

Why Did You Receive IRS Form 433-B?

Businesses usually receive IRS Form 433-B after the IRS determines they owe tax debt and must disclose their financial condition before any resolution can be approved. The IRS uses the information you submit to decide how much you can pay, whether you qualify for an installment agreement, or if another type of tax relief is appropriate.

Here are the most common reasons you might receive Form 433-B:

• Unpaid Taxes or Penalties and Interest: If your business has outstanding tax liabilities, the IRS will request a detailed picture of your financial situation to determine how the debt can be resolved.
  
  
• Requesting a Payment Plan: When you apply for a monthly installment agreement or direct debit arrangement, this form is required to confirm your eligibility and calculate an affordable payment.
  
  
• Offer in Compromise Request: If you have applied to settle for less than the full amount owed through the compromise program, the IRS needs supporting documentation from Form 433-B.
  
  
• Open Bankruptcy Proceeding: If your business has recently filed for bankruptcy, the IRS may request financial disclosure to pause collection activity or decide on the next steps.
  
  
• Revenue Officer Contact: When a revenue officer is assigned to your case, they will often require this form to review your assets, liabilities, income, and expenses before taking enforced collection action.

Receiving this form signals that the IRS is formally reviewing your case. Failing to respond can worsen matters, so reviewing, completing, and submitting the form on time is essential to avoid additional enforcement or collection efforts.

Consequences of Ignoring IRS Form 433-B

Failing to respond to IRS Form 433-B will not make your tax debt disappear. In fact, ignoring the form can trigger aggressive IRS collection actions that put your business at risk. The IRS uses this form to evaluate your financial condition and decide whether you can pay, so skipping it leaves them with no choice but to collect in the most direct way possible.

Here’s what can happen if you do not file or respond:

• Bank Levies and Asset Seizures: The IRS can freeze your business bank accounts, seize funds, and sell assets to cover your debts.
  
  
• Federal Tax Liens: A lien can be placed on your property, impacting your ability to sell or refinance business assets.
  
  
• Payroll Disruption: If your business has employees, the IRS can garnish wages or seize payroll funds, potentially halting operations.
  
  
• Penalties and Interest: Your balance will continue to grow as penalties and interest accrue until the full liability is paid.
  
  
• Enforced Collection Actions: Revenue officers can visit your place of business, issue legal notices, and escalate the case to the IRS Collections division.

Since the form is signed under penalties of perjury, failing to complete it accurately can also expose you to legal problems. Responding quickly is in your best interest to prevent forced collections and protect your business.

Relief and Resolution Options

Submitting IRS Form 433-B opens the door to several programs that can help businesses resolve their tax debt. The IRS reviews your monthly income, expenses, assets, and liabilities to decide which solution is in the government's and your business's best interest.

Installment Agreements and Payment Plans

One of the most common solutions is an installment agreement, which allows you to pay your balance over time. Businesses that owe less than $25,000 may qualify for an IBTF Express IA (In-Business Trust Fund Express Installment Agreement) and set monthly payments without submitting a full financial review. For higher balances, the IRS may require a complete review of your financial condition using Form 433-B. Direct debit for your payment plan can help avoid default and keep your account in good standing.

Offer in Compromise (OIC)

If paying your balance in full would create a financial hardship, you may be eligible for the compromise program. An Offer in Compromise allows you to settle your debt for less than the full amount. When deciding whether to accept your offer, the IRS considers your ability to pay, income, and assets.

Currently Not Collectible (CNC) Status

If your business is temporarily unable to make payments, the IRS can place your account in Currently Not Collectible status. This stops most collection actions, though penalties and interest will still accrue. CNC is usually a short-term solution until your financial situation improves.

Comparison Table 2: Business Tax Relief Options

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These options give businesses a structured path to resolve their tax obligations and protect critical operations. Choosing the right relief program can help you avoid enforcement actions and keep your company running.

How to Respond to IRS Form 433-B

Once you receive IRS Form 433-B, acting quickly is critical to prevent further collection actions. Follow these steps to complete, review, and submit your form correctly.

Step 1: Gather Required Documentation

Collect all supporting information the IRS needs to verify your income, expenses, assets, and liabilities:

• Previously filed business tax returns and profit and loss statements
  
  
• Bank account statements, loan documents, and investment account summaries
  
  
• Payroll records and employee data
  
  
• Documentation of business debts, judgments, and other liabilities

Step 2: Complete the Form Carefully

Fill out each section accurately, ensuring all entry spaces are addressed (or marked “N/A”). To avoid delays, enter current financial data that matches your supporting documents.

Step 3: Review for Accuracy

Before sending, double-check for missing information or mismatched figures. Ensure totals reconcile with your profit and loss statement. An incomplete form can be rejected, requiring you to file again and further delaying resolution.

Step 4: Submit to the IRS

Follow the instructions provided by the IRS or your assigned revenue officer. You may be asked to mail or submit your completed form by fax. Keep a copy for your records and log the date submitted in case you need to reference it later.

Timely submission helps the IRS determine your eligibility for relief programs, stops unnecessary delays, and puts your business on the path to resolution.

Professional Help and Resources

Completing IRS Form 433-B can be time-consuming and stressful, especially if your business has multiple bank accounts, loans, or employees. Working with the right professionals can help you avoid mistakes and resolve your case faster.

When to Contact the IRS Directly

If you need basic information about your account, you can contact the IRS through their Business Tax Line or use the online payment portal to view your balance and set up an online payment plan. However, IRS wait times can be long, and technical instructions can be confusing.

Transcript Retrieval Services

Before you complete Form 433-B, requesting a copy of your IRS business transcripts is smart. Our Business Tax Transcript Service (1120, 1120-S, 1065) and Employer Compliance Packets (941/940) save hours of waiting on the phone.

• We retrieve your records securely using IRS-authorized systems.
  
  
• We deliver them in plain English so you can understand precisely what the IRS sees.
  
  
• You’ll get peace of mind knowing your information is accurate before you file.

These services can help you ensure that the numbers you report on Form 433-B match IRS records, reducing the risk of rejection or additional IRS requests for documentation.

Frequently Asked Questions (FAQs)

How does IRS Form 433-B help resolve my business tax debt?

Form 433-B allows the IRS to review your complete financial picture—including income, expenses, assets, and liabilities—to determine the best way to resolve your balance. After you submit it, the IRS may refer your case for a payment plan or other relief option. If they need additional information, they will contact you by mail or phone to discuss next steps.

Can I use direct debit for my payment plan?

Yes, the IRS generally encourages businesses to choose direct debit because it reduces the chance of missed payments. You must agree to allow automatic withdrawals from your business bank account each month. This option can help you stay current, avoid default, earn compliance credits that make qualifying for future tax relief easier, or maintain excellent standing with the IRS.

What is the IRS compromise program, and who qualifies?

The compromise program, formally known as the Offer in Compromise, allows certain businesses to settle for less than the full amount owed if paying in full would cause financial hardship. You must meet strict eligibility guidelines and apply with supporting documents. If you are unsure whether you qualify, contact the IRS office or work with a tax professional to review your situation and discuss available options.

When will my application be reviewed?

The IRS reviews applications in the order received. You may be asked for additional information before a decision is made. It’s beneficial to keep a copy of your submission and note the date it was sent. Your case status is generally updated within a few months, and you can refer to your IRS transcript or call the assigned office to confirm progress.