Form 433-B gathers current financial information for businesses facing federal tax collection. The Collection Information Statement for Businesses requests entity data, personnel, assets, liabilities, income and expenses—not personal owner finances unless also needed separately. Preparing clear evidence before review prevents confusion between entity accounts and owner withdrawals, monthly payments and outstanding balances, or receivables and collected cash.
Separate Entity Records from Owner Information
Form 433-B requests business financial information. Owner wages, draws, and personal assets belong in the owner's individual statement when required. Current instructions direct Schedule C sole proprietorships to business sections of Form 433-A; other business entities including LLCs, partnerships and corporations to Form 433-B. Check the exact current instructions and the taxpayer's liability before choosing a form; entity classification is not automatic from a name or EIN.
Keep entity bank statements, operating expenses and business debts separate from owner household records. If one person manages both accounts, label each transaction by role. When the owner pays a business expense from a personal account or transfers funds between accounts, document the date, amount and reason. This boundary log helps reviewers follow cash flow without reconstructing transactions from memory.
Reconcile Assets and Liabilities
Form 433-B requests accounts and receivables, real estate, vehicles, equipment and intangible assets. List each asset with its current fair market value and any outstanding loan balance. Show asset value, loan balance and equity in the fields the current form requests; do not substitute a single net figure for the separate entries. An accounts receivable balance is not the same as cash in the bank. A loan balance is not the monthly payment. Use a reconciliation table to connect each reported figure to a source document and date:
| Item | Source | Date | Amount | Note |
|---|---|---|---|---|
| Operating account | Bank statement | 2026-09-30 | $12,400 | Statement page 1 |
| Accounts receivable | Aging report | 2026-09-30 | $8,200 | Over-90 flagged |
| Equipment loan | Lender statement | 2026-09-30 | $15,600 balance | Monthly $520 |
When space is inadequate, attach detail rather than abbreviating or omitting. Current instructions say N/A must fill spaces where appropriate; blank fields invite questions.
Trace Income and Expense Data
Form 433-B requests average monthly income and expenses with the underlying period and accounting method identified. Pull figures from recent profit-and-loss statements, bank records or bookkeeping reports, not estimates. If you report $6,000 average monthly revenue, note whether that average covers three months, six months or a full year and whether it reflects cash receipts or accrual accounting.
Expense categories include cost of goods sold, rent, utilities, vehicle costs, payroll and other operating costs. Each category should trace to a source. If office rent is $1,200 monthly, reference the lease. If payroll averages $8,500, reference payroll registers. Discrepancies between reported expenses and bank withdrawals need explanation before a professional review, not during one.
Prepare Evidence Before Submission
Current instructions call for the business accounts the form lists—checking, savings, money market, online/mobile and stored value accounts—and may request further support for assets, debt, income and expenses. As a workpaper preparation step, gather relevant bank statements, receivable aging, asset records, loan statements, profit-and-loss reports and payroll records for review. Mark any figure that relies on an assumption rather than a document. If you report equipment value at $10,000 because that was the purchase price two years ago, note the basis and the absence of a current appraisal.
Distinguish plain Form 433-B from the OIC version of the business statement when an offer is involved, and use Form 433-A (OIC) evidence only for the individual offer form. For an offer in compromise, use the current offer booklet to identify required forms. A completed business financial statement does not establish responsible-person liability, entity classification or IRS acceptance. Professional review and current IRS correspondence determine next steps. For software selection, see the tax resolution software evaluation guide.
Checklist for Business Evidence Review
- [ ] Entity information, ownership structure and personnel documented with source dates
- [ ] As a workpaper completeness check, list business accounts—including zero balances—and keep owner records separate
- [ ] Assets reported with fair market value and debt shown separately, not netted
- [ ] Income and expense averages tied to a stated period, accounting method and source document
- [ ] Discrepancies between reported figures and bank activity noted and explained
Integration with Financial Standards
When collection analysis moves to ability-to-pay questions, IRS collection financial standards apply to necessary expenses. Business operating costs are not subject to national or local household standards. Owner living expenses belong in the owner's individual financial statement and follow the standards for household size and location. Do not blend business operating expenses with owner household costs or apply personal expense allowances to business accounts.
If the case involves multiple collection options, prepare an evidence-based comparison. For offer in compromise vs. installment agreement decisions, asset equity, income and eligibility checks must come from documented facts, not assumptions. For snapshot reporting on simpler cases, see the Form 433-F reconciliation guide.
How does Form 433-B differ from Form 433-A?
Form 433-B requests business financial information; 433-A covers wage earners and self-employed individuals. Current instructions direct Schedule C sole proprietors to 433-A business sections; other entities to 433-B. Check exact current instructions.
Must every business tax collection case include a 433-B?
No. The IRS requests financial statements when evaluating ability to pay. Not all payment plans require a collection financial statement. Use the current request and route, not a convenience assumption.
Can I combine owner and business data on one form?
No. Form 433-B is for entity finances. Owner personal assets, household income and living expenses belong in the owner's individual statement when required. Keep records separate and label transactions by role.
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