IRS Form 433-F, also known as the Collection Information Statement for Businesses, is a form used by the Internal Revenue Service (IRS) to gather information about a business’s financial condition. It is commonly used by businesses that owe back taxes and cannot pay the total amount owed. Form 433-F is used to help the IRS determine the business’s ability to pay.

How Your Data is Compiled

Form 433-F is divided into several sections, including information about the business’s income, expenses, assets, and liabilities. The form also includes a section for the business to provide additional information or explanations about their financial situation.

To complete Form 433-F, the business must gather financial information such as bank statements, pay stubs, and tax returns. The form should be filled out as accurately and thoroughly as possible, as the information provided will be used to determine the taxpayer’s ability to pay back taxes.

Section 1 of Form 433-F requests the business’s name, address, and Employer Identification Number (EIN).

Section 2 is for the Income of the business, this includes the following information:

• Sales revenue
• Service revenue
• Rental income
• Interest and dividend income
• Other income

Section 3 is for the Expenses of the business, this includes the following information:

• Cost of goods sold
• Operating expenses
• Interest expenses
• Taxes
• Other expenses

Section 4 is for the Assets of the business, this includes the following information:

• Cash on hand
• Bank accounts
• Investment accounts
• Real estate
• Equipment
• Inventory
• Other assets

Section 5 is for the Liabilities of the taxpayer, this includes the following information:

• Accounts payable
• Loans
• Taxes payable

Collection and Verification

In addition to the information provided on the form, the business may also submit further documentation to support their financial situation. This can include bank statements, financial statements, and tax returns.

Once Form 433-F is completed, it should be mailed to the IRS along with any supporting documentation. The IRS will use the information provided on the form to determine the business’s ability to pay back taxes and will contact the business with their findings.

It is important to note that under the Internal Revenue Code section 6331(d), the IRS can initiate a levy on a business’s bank account, wages, salary and other income, and other assets if the business fails to pay their taxes. This means that the IRS can legally seize assets such as wages, bank accounts, and property to pay off any outstanding tax debt.

Additionally, under the Internal Revenue Code section 6103, the business has the right to request and receive an explanation of any information provided to the IRS. This means that businesses have the right to understand how the IRS determined the business’s ability to pay and how the information was used to establish a payment plan or collection actions.

Lastly, under the Internal Revenue Code section 6320 and 6330, the business has the right to a hearing before the IRS can proceed with a levy on their wages, salary and other income, bank account, and other assets. The hearing is an opportunity for the business to contest the proposed levy and provide additional information about their financial situation to the IRS.

Summary

IRS Form 433-F is a financial statement form used by the IRS to gather information about a business’s financial condition, including income, expenses, assets, and liabilities. The information provided on the form is used by the IRS to determine the business’s ability to pay back taxes and is used to establish a payment plan or collection actions. It is important for the business to provide accurate and complete details.

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