Collection Information Statement for Businesses
The commercial equivalent of Form 433-A, which is for those earning a wage or who are self employed, tax Form 433-B is a document that outlines the financial status of your company, allowing the IRS to determine whether or not it qualifies for an offer in compromise, installment payments, and/or postponement of payment due to hardship. This form includes five sections:
- Section 1: Business Information – This section provides the IRS with the basic information about your business, including its name, address, and contact information. It also specifies the number of employees and gross monthly payroll, and the ways in which the company accepts payment for products and services, such as credit card merchant accounts.
- Section 2: Business Personnel and Contacts – This section details the individuals who own, are partners in, or are shareholders of the business. It requires their names, contact information, SSN, amount of ownership or interest in the company, and whether or not they are responsible for depositing payroll taxes.
- Section 3: Other Financial Information – This section covers any other data that could impact the IRS’s decision, such as past bankruptcy, ongoing lawsuits, business affiliations, transfer of assets, anticipated future changes in income, and more.
- Section 4: Business Asset and Liability Information – This section gives the IRS the concrete numbers about a business’s financial status. It includes information about cash on hand, company bank accounts, any federal contracts, investments, available credit, real estate holdings (real property), company vehicles and equipment, and more.
- Section 5: Monthly Income/Expense Statement for Business – This section outlines the gross income and total expenses your business incurs on a monthly basis. It includes information on income from sales, rentals, interest, dividends, and cash, as well as expenses like materials purchased, utility bills, insurance, repairs and maintenance of buildings and vehicles, rent, salaries/wages, and more.
Penalties and interest continue to accrue during the process of dealing with the IRS, so it’s important to fill out and return any paperwork promptly and correctly to avoid unnecessary delays. However, it’s also important to make sure that the IRS has accurate, complete information, since the data in this form is essential to determining your business’s eligibility for a settlement, and the extent of that settlement.
Filling out and submitting Form 433-B, as well as dealing with the IRS as a whole, can be confusing, but an experienced tax attorney may be able to help you ensure all information in the form is complete, and that it’s returned in a timely manner so you can avoid penalties based on unnecessary delays or missed deadlines. For more information on Form 433-B, an Offer in Compromise, or any other tax issue, contact Florida Tax Solvers today.