Form 433-B Collection Information Statement for
Businesses Checklist
Overview and Purpose
Form 433-B is the Collection Information Statement for Businesses, used by the IRS to gather detailed financial information from business entities unable to pay their tax liabilities in full. This form provides a comprehensive view of the business’s economic situation, including assets, liabilities, income, and expenses, enabling the IRS to determine appropriate payment arrangements or collection alternatives.
Business entities required to complete Form 433-B include partnerships, corporations, exempt organizations, S corporations, and limited liability companies. The form is essential when requesting installment agreements, offers in compromise, or other tax relief options.
Ten-Step Completion Procedure
Step 1: Gather Financial Records
Collect all relevant documentation, including bank statements for the past three months, investment account statements, loan agreements, vehicle titles, property deeds, accounts receivable reports, inventory valuations, equipment lists, and recent profit and loss statements.
Having these documents ready ensures accurate completion and prevents processing delays.
Step 2: Complete Business Information
Provide the legal business name, complete address, Employer Identification Number, and entity type. Include the incorporation or establishment date, business type, telephone number, and website, if applicable. Document employee count, monthly gross payroll, tax deposit frequency, and Electronic Federal Tax Payment System enrollment status.
If engaged in e-commerce, list all payment processors, including PayPal, virtual currency exchanges, and digital wallets, along with their account numbers. List credit cards accepted by the business, including merchant account numbers and issuing bank details.
Step 3: Document Business Personnel
Provide information for all partners, officers, LLC members, and major shareholders. For each person, include full name, title, home address, taxpayer identification number, contact numbers,
ownership percentage, annual salary or draw, and whether they are responsible for depositing payroll taxes. This helps the IRS identify responsible parties for potential trust fund recovery penalties.
Step 4: Disclose Other Financial Information
Indicate whether the business uses a payroll service provider with company details and effective dates. Disclose any lawsuits with case information, amounts, and expected completion dates.
Report bankruptcy filings with dates and petition numbers.
List outstanding amounts owed to the business by related parties with loan details. Report asset transfers within the past ten years for less than full value. Disclose business affiliations with subsidiaries or parent companies. Note anticipated income changes with explanations and timing. Identify if the business holds federal government contracts.
Step 5: Report Cash and Bank Accounts
Enter total cash on hand, including cash in safes, registers, and petty cash. If a safe exists on premises, describe its contents and value. List all business bank accounts, including checking, savings, money market, online platforms, mobile accounts like PayPal, and stored value cards.
For each account, provide institution details, account numbers, current balances, and dates.
Report safe deposit boxes, including their locations, numbers, and contents.
Step 6: Document Receivables and Investments
List all accounts and notes receivable, including e-payment accounts, factoring companies, and government contracts. For each receivable, provide the customer's information, contact details, status, due dates, invoice numbers, and the amounts due.
Document investments including stocks, bonds, mutual funds, certificates of deposit, commodities, and virtual currencies like Bitcoin. For each investment, provide company details, collateral status, current value, loan balance, and equity. List available credit with institution names, account numbers, credit limits, amounts owed, and available credit.
Step 7: Report Real Property and Vehicles
List all real property owned, leased, or rented with complete descriptions, locations, purchase or lease dates, fair market values, loan balances, monthly payments, final payment dates, and equity values. Include lender, lessor, or landlord contact information.
Document all vehicles, including cars, boats, RVs, motorcycles, and trailers. Provide year, make, model, mileage, license numbers, VINs, purchase or lease dates, current values, loan balances, monthly payments, final payment dates, and equity. Include lender or lessor details.
Step 8: List Equipment and Intangible Assets
Report all business equipment, including machinery, tools, and inventory. Provide descriptions, locations, dates, values, loan balances, payments, and equity. Include lender contact information.
List intangible assets separately, including licenses, patents, domain names, trademarks, copyrights, software, mining claims, goodwill, and trade secrets with current values. Document business liabilities, including notes and judgments, indicating secured or unsecured status, dates, balances, and payment information.
Step 9: Complete Income and Expense Statement
Specify the accounting method as cash or accrual. Select a prior three, six, nine, or twelve-month period reflecting typical operations. Provide start and end dates for the period used.
Report monthly income, including gross receipts from sales and services, rental income, interest, dividends, cash receipts, and other income sources. Calculate total income.
Document monthly expenses, including materials purchased, inventory, wages and salaries, rent, supplies, utilities and telephone, vehicle costs, repairs, insurance, and current taxes. List other expenses with specifications. Do not include depreciation, bad debts, or depletion.
Calculate total expenses and net income by subtracting expenses from income.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Review, Sign, and Submit
Review all entries for completeness and accuracy. Ensure every question is answered or marked “N/A.” Verify all supporting documentation is attached and properly labeled.
An authorized partner, corporate officer, or LLC member must sign under penalties of perjury, certifying that all information is true, correct, and complete. Print name and title, then date the signature. Initial and date any changes made after signing.
Attach all supporting documentation, including bank statements, investment statements, loan agreements, property appraisals, receivables reports, and profit and loss statements. Mail the completed form to the IRS representative or office managing your case.
Follow the submission instructions provided in your IRS correspondence. Electronic filing is not currently available for Form 433-B. Retain complete copies for your records.
Essential Rules and Best Practices
Authorized business personnel must sign the form to verify the truthfulness of the information.
Representatives must have valid power of attorney documentation, such as Form 2848, if signing on behalf of the business.
Ensure all contact and financial information is accurate and current. Include only relevant documentation for verifying assets, liabilities, income, and expenses. Use clear, legible handwriting or electronic formats that are easy to read. Attach supplementary sheets if additional space is needed, with clear line number references.
Maintain organized records of all submitted materials and correspondence. Respond promptly to IRS inquiries or requests for additional documentation. Timely responses demonstrate good-faith cooperation and prevent default actions.
Follow up if acknowledgment is not received within thirty days. Be prepared to discuss payment options based on the financial picture presented. The IRS will determine appropriate collection alternatives based on your business’s demonstrated ability to pay.
Complete Form 433-B thoroughly and accurately to position your business for the best possible outcome when working with the IRS to resolve outstanding tax liabilities through installment agreements, offers in compromise, or other collection resolution options.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
