IRS Form 433-B: Collection Information Statement for Businesses

IRS Form 433-B (Collection Information Statement for Businesses) is the financial disclosure form the IRS requires before it will approve most collection alternatives for businesses — including installment agreements over $25,000, Offers in Compromise, and Currently Not Collectible status. It is also a central document in Trust Fund Recovery Penalty investigations.

When the IRS Requires Form 433-B

The IRS requires Form 433-B in four main situations:

1. Installment Agreement over $25,000: Businesses that owe more than $25,000 and want a payment plan must provide full financial disclosure through Form 433-B. The IRS uses this to determine the maximum payment it can realistically expect.

2. Business Offer in Compromise: If a business entity submits an OIC, Form 433-B is required alongside Form 656 (Offer in Compromise). The IRS calculates the business’s Reasonable Collection Potential (RCP) from the asset and income information on 433-B.

3. Currently Not Collectible status: If the business has no ability to pay, Form 433-B documents that fact so the IRS can place the business account in CNC status.

4. Trust Fund Recovery Penalty investigation: When the IRS is determining personal liability for unpaid payroll taxes, Revenue Officers use 433-B data (and interviews) to identify who controlled the business finances. See the TFRP guide for more on how this works.

Key Items the IRS Scrutinizes

Accounts receivable: Money owed to the business is considered a liquid asset. If a business claims it cannot pay taxes but has $50,000 in outstanding receivables, the IRS will factor those in.

Related-party transactions: Loans to shareholders, management fees paid to affiliates, or below-market rents between related parties will be scrutinized. The IRS may treat these as available assets.

Asset transfers: The IRS looks for recent transfers of business assets (within the past few years). Transfers made while owing taxes can be challenged as fraudulent conveyances.

Payroll going forward: Current payroll tax obligations must be current before the IRS will approve most collection arrangements for back taxes. If payroll taxes are still accruing unpaid, the IRS will not finalize a resolution for the old debt.

Form 433-B vs. 433-A

Form 433-A is for individual taxpayers and self-employed individuals. Form 433-B is for business entities. If you are a sole proprietor with business income, the IRS typically uses Form 433-A (OIS) — which includes a business section — rather than 433-B. Corporations, partnerships, and LLCs are Form 433-B filers.

There is also a simplified version, Form 433-F, used for lower-complexity installment agreement requests — typically under $50,000. Revenue Officers handling complex cases will almost always require the full 433-B.

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