433-B (OIC) Collection Information Statement for Businesses

What Is A Form 433 B OIC

The IRS Form 433-B (OIC) is a vital document for businesses in debt to the Internal Revenue Service. It is a Collection Information Statement for Businesses seeking to establish an offer in compromise (OIC). An OIC allows businesses to settle their tax liabilities for less than the full amount they owe. Using Form 433-B (OIC), a business can provide detailed financial information to the IRS to demonstrate that paying the full tax liability would create a financial hardship.

What Is The Difference Between 433 B And 433 B OIC

When discussing IRS forms, confusion can often arise about similar form numbers. The primary difference between Form 433-B and Form 433-B (OIC) is their purpose.

Form 433-B is a Collection Information Statement that collects financial information for businesses with outstanding tax liabilities, typically for setting up payment plans or assessing collection potential.

Form 433-B (OIC) is designed for businesses applying for an offer in compromise – a program allowing tax debt settlement for less than the owed amount under certain circumstances.

How To Fill Out Form 433 B OIC Instructions

Filling out Form 433-B (OIC) requires careful attention to detail to accurately represent the financial status of your business. Here is a step-by-step guide on completing this form:

• Section 1: Basic Business Information
  • Enter the complete name, address, and EIN of the business.
  • Include information about the business's organizational structure and a detailed description of all business activities.
• Section 2: Other Information
  • Answer thoroughly all questions relating to the business' affiliations, past and present business ventures, and operational specifics.
• Section 3: Accounts/Notes Receivable
  • Provide accounts or notes receivable details, including payer names, balance, and associated collateral.
• Section 4: Available Credit
  • List all available lines of credit, including limits, balances, monthly payments, and dates opened.
• Section 5: Business Assets
  • Inventory all assets, including bank accounts, investments, real estate, vehicles, machinery, and equipment.
• Section 6: Business Income and Expenses
  • Give detailed monthly figures for gross income, cost of goods sold, and other business operating expenses.
• Section 7: Non-Business Income And Expenditure
  • Document income and expenditures not directly linked to the main business operations, if any.
• Sign and Date the Certification
  • After ensuring all information is accurate and complete, sign and date the form before submission.

Where To File IRS Form 433 B OIC

Upon completing the Collection Information Statement Form 433-B (OIC), it must be filed with the IRS at the address provided in the OIC Booklet or the IRS notice you received. Since the filing address can change depending on the circumstances, referring to the most recent IRS guidance is crucial. If in doubt, contacting the IRS directly or consulting a tax professional can ensure accurate filing.