Internal Revenue Service (IRS) Form 433B is a source of information for the IRS in order to collect taxes from self-employed individuals and businesses alike, and the form is necessary for all voluntary payment arrangements with the IRS, including Offers in Compromise, Installment Agreements, and Uncollectible Status. The entities that would have to file a 433B form should they attempt to initiate one of these procedures includes corporations, partnerships, limited liability companies (“LLCs”) and other entities.
Form 433B must be filled out in a technical fashion. For example, a 433B form appended to an Offer in Compromise may be returned to the applicant for failure to fill out a particular row, even if that row requests information that does not apply to the applicant. Instead of leaving rows blank, fill them in with “N/A.” In addition, be prepared with the information you will need to fill out Form 433B ahead of time. This includes information pertaining to each of the following sections:
Remember to attach recent statements from creditors with monthly payments and balances for leased items, e.g. vehicles, and the same for mortgages and other creditor relationships. Also, in Section 6, include bank statements from all relevant accounts going back three months.
Form 433B must also be signed by an authorized representative of the taxpaying entity, and enclosed along with whatever other documentation you might need in order to engage in one of the voluntary payment arrangements described above.
Keep in mind, you must be completely honest when disclosing the financial information of your business to the IRS. Failure to do so would constitute a fraud on the IRS, and whatever difficulties you may be facing with respect to your current tax liability will be compounded by potential civil and criminal liability.
Form 433B can be found on the IRS website. You should consult a professional tax adviser to ensure you have appropriately filled out this form, and that other forms you are required to submit along with Form 433B are properly enclosed and submitted.