Form 433-B: Collection Information Statement for Businesses

Form 433-B is generally used to provide business financial information when reviewing certain federal tax liabilities and collection matters.

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Introduction

Form 433-B, Collection Information Statement for Businesses, is generally used to provide financial information about a business. The form collects information about business income, expenses, assets, liabilities, accounts, and other financial matters.

This guide provides general information about Form 433-B, including who may use the form, the information commonly needed, and the basic process for completing it. The information is intended to provide a simple overview of Form 433-B and its general purpose.

What Is Form 433-B?

Form 433-B is generally used to provide financial information about a business when financial information is needed for certain federal tax collection matters. The form provides a general overview of the business’s financial situation.

Form 433-B generally includes information about business income, expenses, assets, liabilities, bank accounts, accounts receivable, business property, and other applicable financial information. The specific information required can depend on the business’s circumstances and the purpose of the financial statement.

Who Uses Form 433-B?

Form 433-B is generally used by businesses that are required to provide financial information in connection with certain federal tax collection matters.

The form may be used when financial information is needed to evaluate a business’s ability to pay federal tax liabilities or determine an appropriate collection arrangement. The applicable requirements can depend on the type of business, financial circumstances, tax liabilities, income, assets, expenses, and other factors.

What Information Is Needed?

The information needed to complete Form 433-B generally comes from the business’s accounting records, financial statements, bank statements, payroll records, accounts receivable records, loan records, property records, tax records, and other supporting business and tax records. Accurate information can help provide a complete picture of the business’s financial situation.

Common information includes:

Business name
Business address
Employer identification number
Business type
Contact information
Business activity
Owner or responsible party information
Employment information
Monthly business income
Monthly business expenses
Bank accounts
Accounts receivable
Real estate
Business vehicles
Business equipment
Inventory
Investments
Other business assets
Loans and liabilities
Credit obligations
Tax liabilities
Supporting business and tax records

The specific information required may depend on the business’s activities, financial situation, assets, income, expenses, liabilities, ownership structure, and the purpose of the financial statement.

How to Fill Out/Complete Form 433-B

Form 433-B is generally completed by gathering the business’s financial information, entering business and ownership information, reporting income and expenses, identifying assets and liabilities, completing applicable financial sections, and reviewing the form before submission.

The basic process is to gather current business records, enter business information, report income and expenses, list bank accounts and accounts receivable, identify business assets and liabilities, provide applicable supporting documentation, complete the required certification and signature, and review the completed form before submitting it. The business should retain a copy of the completed form and supporting records.

Section 1

Enter the business’s identifying information. This generally includes the business name, address, employer identification number, business type, business activity, and other applicable information.

The information should generally agree with the business’s legal, tax, accounting, and financial records. The business should review the information carefully before continuing with the financial sections.

Section 2

Enter applicable owner, officer, or responsible party information. This may include information about individuals who own or control the business or who are otherwise associated with the financial statement.

The information should generally be accurate and consistent with the business’s ownership and organizational records. Applicable ownership documentation should generally be retained.

Section 3

Report the business’s income. This generally includes sales, service income, receipts, and other applicable business income.

The amounts reported should generally be supported by accounting records, financial statements, bank records, sales records, and other applicable documentation. The business should include applicable income information required for the financial statement.

Section 4

Report the business’s monthly expenses. This generally includes payroll, rent, utilities, supplies, insurance, loan payments, taxes, and other applicable business expenses.

The expenses reported should generally be based on the business’s accounting records and financial documentation. The business should maintain records supporting the amounts reported.

Section 5

Report the business’s bank accounts and other financial accounts. This may include checking accounts, savings accounts, investment accounts, and other applicable accounts held by the business.

The account information should generally be accurate and supported by current financial statements or account records. The business should review account balances and other information before submitting the form.

Section 6

Report accounts receivable and other amounts owed to the business. This may include customer balances, outstanding invoices, and other applicable receivables.

The information should generally be based on the business’s current accounting records and receivable records. Supporting documentation should generally be retained for amounts reported.

Section 7

Report applicable real estate and other business property. This generally includes business-owned real property, buildings, land, and other applicable property.

The business should generally provide applicable ownership and value information based on available records. Property records, loan information, and other supporting documentation should generally be retained.

Section 8

Report business vehicles, equipment, inventory, and other assets. This may include automobiles, trucks, machinery, tools, equipment, inventory, and other business property.

The information should generally reflect the business’s applicable ownership and financial records. The business should review asset information carefully and retain supporting documentation.

Section 9

Report applicable investments and other financial assets. This may include securities, investment accounts, ownership interests, or other applicable financial assets held by the business.

The information should generally be supported by account statements, ownership records, financial statements, or other applicable documentation. The business should review the reported values for accuracy.

Section 10

Report the business’s liabilities and debts. This generally includes loans, mortgages, credit accounts, equipment financing, accounts payable, tax liabilities, and other applicable obligations.

The amounts reported should generally be supported by current account statements, loan records, accounting records, and other financial documentation. The business should review outstanding balances and payment information for accuracy.

Section 11

Report other applicable business financial information. This may include additional financial interests, obligations, transactions, or circumstances that are relevant to the business’s financial statement.

Only applicable information should generally be included. Supporting records should be retained for financial information reported on Form 433-B.

Section 12

Review the business’s overall financial information and applicable calculations. This generally involves considering the business’s income, expenses, assets, liabilities, accounts receivable, bank accounts, and other financial information reported on the form.

The financial information should generally be consistent throughout Form 433-B and related documentation. Differences between sections or supporting records should be reviewed before submission.

Section 13

Complete the applicable certification and signature information. The appropriate business representative generally certifies that the financial information provided is accurate and complete to the best of the representative’s knowledge.

The business should review the entire form before signing. The applicable signature and date should be completed as required before Form 433-B is submitted.

Final Review

Review Form 433-B after completing all applicable sections. Check the business information, ownership information, income, expenses, bank accounts, accounts receivable, real estate, vehicles, equipment, inventory, investments, other assets, liabilities, financial calculations, supporting records, certification, and signature.

A final review can help identify incorrect or incomplete information before the form is submitted. The business should retain Form 433-B, supporting financial records, tax records, bank statements, accounting records, asset records, liability records, and other documentation associated with the financial statement.

Common Mistakes

Common Form 433-B mistakes may include entering incorrect business information, reporting incomplete income, or providing inaccurate expense information. Errors involving bank accounts, accounts receivable, real estate, vehicles, equipment, inventory, investments, or other business assets can also affect the financial information provided.

Other mistakes may include failing to report applicable liabilities, using unsupported financial amounts, providing inconsistent information, overlooking applicable income or assets, leaving required sections incomplete, failing to provide supporting documentation, or submitting the form without reviewing it. Comparing Form 433-B with current accounting, financial, business, and tax records can help identify potential errors.

Related IRS Forms

Businesses may encounter other federal tax forms when providing financial information, addressing federal tax liabilities, requesting payment arrangements, or participating in tax collection matters.

Common related forms include:

Form 433-B (OIC) for certain business financial information associated with an offer in compromise
Form 433-A for certain individual financial information
Form 433-A (OIC) for certain individual financial information associated with an offer in compromise
Form 433-F for certain collection financial information
Form 656 for making an offer in compromise
Form 656-B (OIC) for information and forms associated with an offer in compromise
Form 9465 for requesting an installment payment arrangement
Form 8821 for authorizing the release of tax information to a designated person
Form 2848 for certain powers of attorney and representative authorization
Form 4506-T for requesting a transcript of a tax return or other tax information

The appropriate form depends on the business’s circumstances, financial situation, tax liabilities, and applicable tax collection or resolution process.

Where to File or Submit

Form 433-B is generally submitted according to the applicable federal tax collection requirements and the purpose for which the financial statement is being requested. The appropriate submission process can depend on the business’s circumstances, tax liabilities, financial information, and collection matter.

The business should review the applicable submission requirements before submitting Form 433-B. A copy of the completed form, supporting financial records, tax records, bank statements, accounting records, asset records, and liability records should generally be retained for the business’s files.

Current IRS Form & Instructions

Businesses should use the applicable version of Form 433-B and its instructions when preparing a collection information statement. Federal forms, requirements, and procedures can change, so the version used should correspond with the applicable request and circumstances.

Before submitting Form 433-B, review the form and applicable instructions and confirm that the business information, ownership information, income, expenses, accounts, assets, liabilities, supporting records, certification, and signature are accurate. This can help reduce errors in the financial statement.

Important Information / Disclaimer

This Form 433-B guide is provided for general informational purposes only and is intended to provide a basic overview of Form 433-B and common information associated with providing business financial information for certain federal tax collection matters. This information is not tax, legal, accounting, or financial advice, and Form 433-B requirements can vary depending on the business, tax liabilities, financial circumstances, assets, income, expenses, ownership structure, and other applicable circumstances.

Businesses and their owners are responsible for determining their applicable filing, payment, financial disclosure, recordkeeping, and tax collection requirements. The information on this page may not cover every situation, exception, or special rule that may apply. When appropriate, businesses and their owners should consider seeking assistance from a qualified tax professional, attorney, enrolled agent, certified public accountant, or other qualified advisor regarding their specific tax situation or Form 433-B requirements.