Updated for current IRS forms: This guide reflects the June 2026 revision of IRS Form 433-B, the July 2026 revision of IRS Publication 5059, and the April 2026 revision of Form 433-B (OIC).
IRS Form 433-B is the Collection Information Statement the IRS uses to examine the current financial condition of a business. It asks for far more than a profit-and-loss number. The current form requires information about the business, owners and responsible personnel, bank accounts, payment processors, accounts receivable, digital assets, available credit, real estate, vehicles, equipment, intangible assets, liabilities, monthly income, and operating expenses.
The information reported on Form 433-B can influence how the IRS evaluates a proposed business installment agreement, a request to temporarily delay collection, the use of business assets or receivables, and other collection options. The form is signed under penalties of perjury and may be compared with tax returns, bank statements, payroll records, merchant-account activity, financial statements, loan records, and other documents.
Quick Answer:
Form 433-B does not itself create a payment plan, stop a levy, or settle a tax debt. It gives the IRS a detailed financial record from which it can evaluate what the business can pay, which assets may be available, whether the proposed resolution is realistic, and what additional documentation is needed.
Form 433-B gives the IRS a current financial picture of a business rather than merely repeating the figures on a prior tax return.
What Is IRS Form 433-B?
Form 433-B is a business Collection Information Statement. Its purpose is to provide the IRS with current financial information needed to determine how a business may satisfy an outstanding federal tax liability.
A business income-tax return generally reports results for a completed tax year. Form 433-B is different. It focuses on the business as it exists now: current personnel, current cash, current receivables, current asset values, current liabilities, available credit, and representative monthly cash flow.
The IRS may use the form to evaluate whether the business can full-pay, whether a proposed monthly payment is supportable, whether the business may qualify for another collection treatment, whether assets or receivables require further analysis, and whether the company appears financially viable. Businesses can also review our broader guide to compare Form 433-A, Form 433-B, and Form 433-F.
What Form 433-B Does Not Do
- It does not automatically approve an installment agreement.
- It does not automatically place the business in currently-not-collectible status.
- It does not automatically release a bank, receivables, or other IRS levy.
- It is not the same form used to calculate a business Offer in Compromise.
- It does not eliminate the need to file required returns or make current federal tax deposits.
Do not treat the form as a casual questionnaire. The current Form 433-B instructs the business to complete every entry with current information or write “N/A” when an item does not apply. Incomplete entries can delay the case or cause the requested resolution to be rejected.
Which Businesses May Need to Complete Form 433-B?
According to the current IRS preparation guide, Form 433-B is generally used for business entities such as:
The IRS may request the form when a revenue officer is assigned, when a business seeks an ability-to-pay installment agreement, when the IRS is evaluating a collection delay, or when the business does not qualify for a simplified resolution that can be established without a full Collection Information Statement.
Does a Sole Proprietor Use Form 433-B?
A sole proprietor generally reports personal and business financial information on Form 433-A rather than using the standard Form 433-B as a separate business taxpayer. The individual and the sole proprietorship are not treated as separate liable taxpayers in the same manner as a corporation or partnership.
Single-member LLC cases can be more nuanced. The correct form can depend on the tax classification, the type of liability, and whether the LLC or the owner is identified as the taxpayer. In some cases, the IRS may need business information on Form 433-B and personal information on Form 433-A. The notice or request should be reviewed before financial information is submitted.
Form 433-B Versus Form 433-B (OIC)
Form 433-B and Form 433-B (OIC) have similar names, but they are not interchangeable. Using the wrong version may produce an incomplete submission or delay the requested resolution.
The April 2026 Form 433-B (OIC) states that it should be used with Form 656 by corporations, partnerships, and qualifying LLCs submitting a business Offer in Compromise. A sole proprietor generally uses Form 433-A (OIC) for an offer.
Confirm the requested resolution before preparing the form. A standard Form 433-B should not be substituted for Form 433-B (OIC), and the OIC version should not be used merely because the business wants a lower monthly payment.
The correct Collection Information Statement depends on the liable taxpayer and the specific IRS resolution being requested.
What Information Does Form 433-B Require?
The standard Form 433-B is divided into five major sections. Each section can affect the IRS’s understanding of the business and its collection potential.
Section 1: Business Information and Payment Channels
The form asks for basic identifying and operating information, including:
- Business name, address, county, telephone number, and website
- Employer Identification Number (EIN)
- Entity type and date established
- Number of employees and monthly gross payroll
- Frequency of federal tax deposits & EFTPS enrollment
- E-commerce gateways, payment processors, and account numbers
- Credit card types accepted and merchant-account details
Payment activity should not be limited to a traditional checking account. The current IRS materials specifically direct businesses to consider online commerce, payment-service providers, mobile payment accounts, stored-value accounts, and digital-currency payment channels. Reconcile those records with deposits and reported income.
Section 2: Owners, Officers, Partners, and Payroll-Responsible Personnel
Requests information about partners, officers, LLC members, major shareholders, and relevant personnel. Asks for titles, addresses, SSNs/TINs, ownership %, annual salary/draw, and whether the person was responsible for depositing payroll taxes.
Who controlled finances, signed checks, handled payroll, made tax deposits, or decided which creditors were paid may become relevant to a separate Trust Fund Recovery Penalty investigation.
Being listed on Form 433-B does not automatically make someone personally liable. The IRS separately evaluates responsibility and willfulness. Businesses with unpaid Form 941 liabilities should review the risks described on our employment and payroll tax attorney page.
Section 3: Lawsuits, Bankruptcy, Related Parties, Transfers, and Affiliates
Reaches beyond ordinary bank balances. Asks if the business uses payroll agents, is in lawsuits, filed bankruptcy, is owed money by officers/related parties, transferred assets for less than full value in the last 10 years, has parent/subsidiary entities, expects income shifts, or holds federal contracts.
These questions may reveal expected proceeds, related-party receivables, transferred property, or upcoming changes affecting collection ability. Support “yes” answers with complete documentation.
Section 4: Business Assets and Liabilities
Cash & bank accounts: Report cash on hand, registers, petty cash, safes, and zero-balance accounts (checking, savings, online accounts, merchant accounts).
Accounts & notes receivable: Identify debtors, aging status, contract numbers, factoring, e-payment receivables, and government contracts. Learn more about how the IRS can levy accounts receivable.
Accounts receivable, contracts, payment processors, and cash-flow records can be as important as the balance in a business bank account.
Investments & digital assets: Stocks, bonds, CDs, crypto, NFTs, smart contracts, wallet locations, access keys, and current value.
Real estate, vehicles, equipment & intangibles: Fair market value, debt, payment schedules, equity, plus patents, domain names, trademarks, software, and goodwill.
Business liabilities: Notes and judgments not already tied to assets. Must match current lender balances.
Section 5: Monthly Business Income and Expenses
Specify cash or accrual accounting. Uses a representative prior 3-, 6-, 9-, or 12-month period to determine typical operations. Reconcile with P&L statements.
Gross receipts are reported before subtracting costs. Do not include noncash accounting expenses such as depreciation, bad debts, or depletion as monthly operating expenses.
Documents to Gather Before Completing Form 433-B
Gathering records first prevents filling in the form from memory and attempting to justify figures later. Key records include:
The IRS may request verification after reviewing the form, including tax returns, profit-and-loss statements, bank/investment statements, loan documents, and recurring expense bills.
10 Common Form 433-B Mistakes
The standard Form 433-B is not interchangeable with Form 433-B (OIC). Confirm whether the business is pursuing a general collection resolution or an Offer in Compromise.
The current form directs businesses to provide current information or write “N/A.” Blank fields create questions and delay processing.
Gross receipts, bank deposits, taxable income, and cash available to pay the IRS are related but not identical. Figures should be reconciled.
Payments through PayPal, Stripe, marketplace platforms, or mobile accounts must be reported even if they do not enter checking accounts immediately.
Invoices, e-payment receivables, factored accounts, government contracts, and awarded contracts must be fully detailed.
Owner loans, payments to related entities, and transfers below market value require explicit disclosure and explanation.
Depreciation, bad debts, and depletion appear on P&L statements but are excluded from monthly cash operating expenses on Form 433-B.
Fair market values, loan balances, ownership %, and equity calculations should be current and supportable.
Personal expenses paid from company accounts distort cash flow, raise owner-compensation concerns, and complicate reconciliation.
The signing officer/partner certifies accuracy under penalties of perjury. Attachments and calculations should be thoroughly verified prior to filing.
How the IRS May Use Form 433-B
The IRS uses the financial statement to evaluate the business’s overall financial condition and the most appropriate collection treatment. Depending on the facts, the form may affect:
The standard form is not used to calculate a business Offer in Compromise. A qualifying business pursuing an offer generally uses Form 433-B (OIC) with Form 656. Broader business collection issues are discussed on our business tax attorney page.
Submitting Form 433-B does not automatically suspend enforcement. A business facing a bank levy, accounts-receivable levy, final collection notice, or other deadline should address that collection issue directly rather than assuming the financial statement alone will stop it.
What Happens After Form 433-B Is Submitted?
After reviewing the form, the IRS may accept the information for purposes of discussing a resolution, request supporting records, question specific income or expense entries, seek explanations for asset values or transfers, or ask for updated financial information.
The IRS may compare the form with business returns, profit-and-loss statements, bank deposits, merchant reports, payroll records, loan statements, contracts, and financial statements. Discrepancies should be identifiable and supportable.
During the process, the business must continue filing required returns and making current federal tax deposits. Creating new unpaid tax periods can jeopardize a proposed resolution and increase the risk of additional collection action. This is especially important when the balance includes payroll and employment taxes.
When Attorney Review May Be Especially Important
Not every Form 433-B requires an attorney. Legal review may be particularly important when:
A careful review can help identify the correct form, reconcile supporting documents, distinguish business and personal exposure, and present the requested information in a clear and defensible manner.
IRS Form 433-B Frequently Asked Questions
What is Form 433-B used for?
The IRS uses Form 433-B to obtain current financial information needed to evaluate how a business may satisfy an outstanding tax liability. It may be relevant to installment-agreement negotiations, collection-delay requests, asset and receivables analysis, and other collection decisions.
Who must complete IRS Form 433-B?
The current IRS preparation guide identifies partnerships, corporations, exempt organizations, S corporations, LLCs classified as corporations, and other LLCs among the entities that use Form 433-B. The correct form depends on who owes the tax and what the IRS requested.
Does a sole proprietor use Form 433-B?
Generally, a sole proprietor reports personal and business financial information on Form 433-A. Entity classification and liability can complicate some LLC cases, so the IRS request should be confirmed before choosing a form.
What is the difference between Form 433-B and Form 433-B (OIC)?
The standard Form 433-B is used in general business collection analysis. Form 433-B (OIC) is used with Form 656 when a qualifying business submits an Offer in Compromise and contains offer-specific calculations.
Does Form 433-B require bank statements?
The form itself does not place the same fixed attachment requirement on every case, but the IRS may request bank statements and other verification. The current form specifically warns that prior returns, profit-and-loss statements, bank and investment statements, loan records, financing statements, and recurring-expense documents may be requested.
Does the IRS review accounts receivable?
Yes. Form 433-B has a detailed accounts and notes receivable section. It asks about customers or debtors, due dates, invoice or contract numbers, amounts due, factoring, e-payment receivables, and government grants and contracts.
Can the IRS question business expenses reported on Form 433-B?
Yes. The IRS may request proof that an expense is real, current, and necessary for the business. The preparation guide also excludes noncash items such as depreciation, bad debts, and depletion from the monthly operating-expense calculation.
What happens if Form 433-B is incomplete?
Missing entries or attachments can delay the case, lead to more document requests, or cause the requested resolution to be rejected. The current form instructs businesses to answer every entry with current information or “N/A.”
Can Form 433-B help a business obtain a payment plan?
It can provide the financial information the IRS needs to evaluate a payment proposal when full disclosure is required. Completing the form does not guarantee approval, and the business generally must also address filing compliance, current deposits, and the sustainability of the proposed payment.
Does submitting Form 433-B stop an IRS levy?
No. Submission alone does not automatically release or prevent a levy. Active or threatened enforcement should be addressed through the applicable collection, appeal, or levy-release procedure.
Is Form 433-B signed under penalties of perjury?
Yes. The signer certifies that the statement of assets, liabilities, and other information is true, correct, and complete to the best of the signer’s knowledge and belief.
How recent should the financial information be?
The figures should reflect the business’s current financial condition. The IRS may request updated information if the case continues, the original submission becomes stale, or the company’s finances materially change.
Has the IRS Requested Form 433-B?
The form can shape how the IRS evaluates your business, its cash flow, its assets, and the people connected to payroll-tax decisions. Todd S. Unger helps business owners review IRS financial requests, organize supporting records, evaluate collection options, and address related payroll-tax or enforcement concerns.
Official IRS Resources
- Form 433-B, Collection Information Statement for Businesses, Rev. June 2026
- Publication 5059, How to Prepare a Collection Information Statement (Form 433-B), Rev. July 2026
- Form 433-B (OIC), Collection Information Statement for Businesses, Rev. April 2026
- Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, Rev. June 2026
- IRS guidance on employment taxes and the Trust Fund Recovery Penalty
Legal information only: This article provides general educational information and is not legal or tax advice for a specific business. IRS forms, procedures, and administrative practices can change. Review the current form, instructions, notice, deadlines, entity classification, and facts of the case before submitting financial information.
