IRS Form 433-B (OIC) – IRS Forms, Instructions, Pubs 2026 – IRS Form 433-B (OIC), officially titled Collection Information Statement for Businesses, is a critical document required when a business submits an Offer in Compromise (OIC) to settle outstanding tax debts for less than the full amount owed. Businesses file it alongside Form 656 (Offer in Compromise) to provide the IRS with a detailed snapshot of finances, enabling evaluation of whether the proposed offer maximizes collection potential and serves the best interest of the government.
Download the latest version: IRS Form 433-B (OIC) PDF (Rev. 4-2025).
Who Must File Form 433-B (OIC)?
Business entities required to complete this form include:
- Corporations
- Partnerships
- Limited Liability Companies (LLCs) classified as corporations
- Other LLCs
Sole proprietorships use Form 433-A (OIC) instead. Businesses currently in bankruptcy proceedings are ineligible for an OIC.
Key distinction: Use Form 433-B (OIC) specifically for Offer in Compromise applications. The standard Form 433-B (without OIC) applies to installment agreements or other collection alternatives and lacks the specialized offer calculation sections.
Step-by-Step Guide to Completing Form 433-B (OIC)
Gather documents for the most recent 6–12 months: bank statements, profit/loss statements (P&L), loan/mortgage statements, investment records, depreciation schedules, and digital asset records. Use tools like Kelley Blue Book or NADA for vehicle valuations and local real estate data for property. All values are subject to IRS review and adjustment.
Section 1: Business Information (Domestic and Foreign)
Provide:
- Legal name, EIN, physical/mailing addresses, phones, website, county, DBA/trade name
- Ownership details for all partners, officers, LLC members, and major shareholders (name, title, % ownership, salary, SSN, home address/phone)
- Employee count, payroll frequency, average gross monthly payroll, outsourcing info, federal contractor status
Attach additional sheets if needed.
Section 2: Business Asset Information (Domestic and Foreign)
Detail all assets with current statements:
- Cash/Investments: Checking, savings, money market, stocks, bonds, online accounts
- Digital Assets: Cryptocurrency/tokens (units, exchange/wallet address, USD value)
- Notes/Accounts Receivable: Lists with names, ages, amounts (include e-payments, factoring, bartering)
- Real Estate: Address, description, purchase date, mortgage details, current market value × 0.8 minus loan balance; note if for sale
- Vehicles: Make/model/year/mileage, ownership/lease, creditor, market value × 0.8 minus loan (0 if leased)
- Other Equipment: Type, market value × 0.8 minus loan (0 if leased or income-producing)
Box A: Total Available Equity in Assets (sum, excluding most leased/income-producing assets except real estate).
Section 3: Business Income Information
Use recent 6–12 months or attach current P&L:
- Gross receipts, rental income, interest, dividends, other income
- Box B: Total Business Income
Section 4: Business Expense Information
Average monthly recurring expenses (exclude non-cash like depreciation):
- Materials, inventory, wages/salaries, rent, supplies, utilities, vehicle costs, insurance, current taxes, other (secured debts only; specify)
- Box C: Total Business Expenses
- Box D: Remaining Monthly Income (Box B − Box C)
If using a current P&L, enter totals directly into Boxes B/C and skip line-by-line details.
Section 5: Calculate Your Minimum Offer Amount
- Short-term (≤5 months / ≤5 payments): Box D × 12 = Box E
- Longer-term (6–24 months): Box D × 24 = Box F
Minimum Offer = Box A (assets) + Box E or Box F (whichever applies). Offer must be > $0 in whole dollars. Multipliers may not apply if full payment is possible within the collection statute. Exclude equity in most income-producing assets (except real estate).
Section 6: Other Information
Answer questions on:
- Bankruptcy history (past 10 years)
- Other business affiliations, related-party debts
- Litigation (especially IRS-related)
- Property transfers (past 3 or 10 years), foreign assets/accounts, lines of credit, trust funds
Section 7: Signatures
Sign under penalties of perjury (authorized officer/partner/LLC member). Date and title.
Required Documentation and Attachments
- Current P&L statement
- 6 most recent business bank statements
- 3 most recent investment statements
- Loan/mortgage statements
- Receivables/digital asset records
- Form 656 (OIC application)
- $205 application fee + initial offer payment (or waiver request)
- Form 2848 if using a representative
Mail or email per Form 656-B instructions, or file online via IRS account.
Tips for Success and Common Mistakes to Avoid
- Be accurate and complete — false information can lead to penalties, prosecution, or offer rejection.
- Round to nearest dollar; enter $0 for negatives or zero values.
- Use 80% (quick-sale) valuation for most assets.
- Provide recent data; IRS may request verification.
- Shorter payment terms reduce the minimum offer.
- Common errors: underreporting assets/digital assets, including non-deductible expenses, forgetting attachments, or incomplete ownership details.
- Consider special circumstances (economic hardship, public policy) on Form 656.
Frequently Asked Questions (FAQs)
- Is Form 433-B (OIC) required for business OIC? Yes, along with Form 656.
- What if my business has no employees? Still complete relevant sections.
- Can I exclude income-producing equipment? Generally yes (except real estate) from offer calculation.
- How long is the form valid? Use the most current version (Rev. April 2025) and recent financials.
- Where to get help? IRS OIC Pre-Qualifier tool, Publication 594, or a tax professional/Enrollment Agent.
Conclusion
Completing IRS Form 433-B (OIC) accurately is essential for a successful business Offer in Compromise. It demonstrates your business’s true ability to pay and helps the IRS determine a fair settlement. Always use the latest PDF from IRS.gov, attach all required documentation, and consider consulting a tax professional or enrolled agent experienced in OICs to maximize your chances of acceptance.
For more IRS resources: Offer in Compromise page and Form 656-B booklet.
This article is for informational purposes only and is not legal or tax advice.