Glossary

Form 433-B – Collection Information Statement for Businesses

IRS Form 433-B, the Collection Information Statement for Businesses, gathers detailed financial data (assets, income, expenses, liabilities) to assess tax debt repayment ability. Businesses need this for installment agreements or offers in compromise. Failure to comply can delay resolution or lead to liens/levies. Accurate completion is crucial for fair tax resolution.

0:00 0:00

100

What is Form 433-B?

Form 433-B, known as the Collection Information Statement for Businesses, is a crucial tax form required by the IRS from businesses facing tax debt or seeking installment agreements or offers in compromise.

Primary Purpose

The primary purpose of Form 433-B is to gather detailed financial information from businesses to evaluate their ability to pay taxes owed and to determine appropriate resolution options.

Key Features

Form 433-B requires businesses to provide detailed information on assets, income, expenses, liabilities, and other financial data to assess their financial capabilities accurately.

Filing Requirements

Businesses must complete and submit Form 433-B when requested by the IRS as part of a tax collection process or when applying for tax resolution options like installment agreements or offers in compromise.

Compliance Requirements

Non-compliance with Form 433-B filing requirements can result in delayed resolutions, rejection of installment agreements, or even enforcement actions such as levies or liens against business assets.

Importance in Tax Resolution

Form 433-B plays a vital role in tax resolution by providing the IRS with accurate financial information to determine the best resolution options for businesses, ensuring fair treatment and appropriate tax payments.

Conclusion

Businesses must understand the importance of Form 433-B in tax compliance and resolution processes to facilitate a smoother resolution of tax debts and maintain financial stability.

Recommended for You

Office Renovation for Accessibility Deduction

The Office Renovation for Accessibility Deduction allows businesses to claim tax deductions for expenditures made to improve office accessibility for individuals with disabilities.

Digital Workforce Energy Training Credit

The Digital Workforce Energy Training Credit is a tax incentive designed to support training programs in the energy sector. It encourages digital skill development among workers, fostering growth and innovation.

Renewable Energy Adaptation for Factories Deduction

The 'Renewable Energy Adaptation for Factories Deduction' offers tax benefits for factories implementing renewable energy solutions, promoting sustainability and compliance.

Delinquency Penalty

A Delinquency Penalty refers to charges imposed for late tax payments or filings. Understanding its mechanisms is crucial for avoiding significant financial burdens.

CP523T Notice

The CP523T Notice is sent by the IRS to remind taxpayers of their payment plan obligations and outline the necessary steps to ensure compliance, preventing penalties.

Abatement for Duplicate Quarterly Tax Filings

Abatement for Duplicate Quarterly Tax Filings helps taxpayers rectify duplicate tax submissions, avoiding penalties and ensuring compliance with tax authorities.

Renewable Workforce Electrification Inclusion Equity Training Credit

The Renewable Workforce Electrification Inclusion Equity Training Credit incentivizes businesses to adopt sustainable practices by offering tax credits for workforce training in renewable technologies.

Renewable Energy Access for Low-Income Communities Credit

The Renewable Energy Access for Low-Income Communities Credit offers tax benefits to promote renewable energy access in underserved areas. Discover its purpose, key components, and compliance requirements.

Involuntary Lien

An involuntary lien is a legal claim on a property imposed without the owner's consent, often due to unpaid taxes or debts.

Special Taxing District Liens

Special Taxing District Liens are charges levied on properties within designated areas to fund specific services or improvements, with legal obligations for compliance.

Temporary Staffing Agencies Deduction

The Temporary Staffing Agencies Deduction allows temporary staffing agencies to maximize deductions and comply with tax regulations. It's critical for optimizing tax liabilities.

Subscription Fees for Industry-Specific Databases Deduction

Deducting subscription fees for industry-specific databases can reduce taxable income for businesses. This deduction is key for financial compliance and tax optimization.

Installment Agreement

An Installment Agreement is a plan for paying tax liabilities over time. It helps taxpayers manage debt while maintaining compliance with IRS regulations.

Tax Deductions for Nonprofit Donors Deduction

Tax deductions for nonprofit donors allow individuals and businesses to reduce taxable income by claiming contributions made to eligible organizations.

Payment Plan Termination Approval Form

A Payment Plan Termination Approval Form is a document used to officially terminate a taxpayer's payment plan with the IRS or other tax authorities. It requires careful consideration and compliance to avoid penalties.

Fees for Export Subsidy Applications Deduction

The Fees for Export Subsidy Applications Deduction allows exporters to reduce taxable income by accounting for expenses incurred during export subsidy applications.

Low-Income Housing Tax Credit

The Low-Income Housing Tax Credit (LIHTC) program encourages private investment in affordable housing by offering tax credits to developers for constructing or renovating rental properties targeting low-income tenants.

Statutory Interest on Redemption

Statutory Interest on Redemption refers to the interest amount required by law that must be paid when redeeming tax-related obligations or liabilities.

Professional Mediation Services Deduction

The Professional Mediation Services Deduction allows taxpayers to claim a deduction for fees paid for mediation services that are directly related to settling disputes that may affect their tax obligations.

AI-Powered Fraud Prevention Tools Deduction

The AI-Powered Fraud Prevention Tools Deduction allows businesses to deduct expenses incurred from implementing artificial intelligence technologies to mitigate fraud.