In the second in our series of blogs on IRS forms, Kelly Scott, a Licensed Taxpayer Representative with JK Harris explains what a Form 433B is. This is not a letter or form you would receive from the IRS, but a form that will be used in the resolution of a tax liability.
By: Kelly Scott, EA
Form 433B, Collection Information Statement for Businesses, is generally used during the resolution of business income or withholding tax liabilities. The purpose of the form is to provide the Internal Revenue Service with a “snapshot” of the business’ financial condition. With the exception of Sole Proprietorships or single-member LLCs, all businesses must complete this form in order to request an Installment Agreement, Uncollectible Status, or Offer in Compromise from the IRS. The form includes sections for monthly business income and expenses, and all business assets and liabilities. In lieu of a Form 433B, some IRS agents will accept a profit and loss statement and balance sheet, as the information is similar.