IRS Form 433-B (OIC) Collection Information Statement for Businesses

Form 433-B Instructions

The Form 433-B instructions are as follows:

1. Start with properly identifying your business entity - state its name, employer identification number, physical address, mailing address, telephone numbers, website link, and fax number . You have to record the county where the business is located, summarize its activities, and add the trade name the company uses. If the entity is a federal contractor, confirm it by checking the box. The form must indicate whether you are the only employee and if the business outsources the preparation of tax documentation and payroll processing. Specify how often you make tax deposits and what is the average monthly payroll in your organization. Identify the members, officers, major shareholders, or partners - list their names, social security numbers, titles, contact details, salaries, and percentages of ownership.

2. Disclose information about your assets . Indicate how much cash your entity owns and investments it has made - it is required to provide bank details so that the IRS is able to check the correctness of data. You also need to list digital assets you own, notes and accounts receivable, real property, vehicles, and equipment - every item must be accurately estimated and described. Enclose a separate sheet that elaborates on the property of your organization if necessary. Once you have listed all the assets, enter the dollar amount of available equity.

3. Show how much income your business generates in a month on average - use documentation of the last six or twelve months for reference . Specify the time period you describe and list the amount of gross receipts, rental income, dividends, and interest you have earned. Calculate the expenses separately - indicate how many materials and inventory you have acquired, record the salaries, rent, and utilities you paid, and point out the taxes you owe at the moment. Subtract the expenses from the income to verify the monthly income of your entity.

4. Calculate the amount of the offer you are ready to make to the IRS - use the formulas in the form to inform the tax organs how much tax you are able to pay . In case there are other circumstances that may impact the decision of tax authorities, you need to mention them in writing. Whether you have filed bankruptcy, there are affiliations to parent or subsidiary companies, you are currently involved in litigation, or you own assets in a foreign country, you have to answer all the questions listed in the form truthfully to draw a full picture of your financial standing.

5. Certify the information you included in the instrument is true and accurate, record your title, sign and date the form . Before you file the paperwork, carefully read through the checklist on the last page of the form - the taxpayers are reminded of all the documents they are expected to submit alongside this statement.