Ability to Pay – Business
Form 433B, Collection Information Statement for Businesses helps the IRS calculate a business’ ability to pay its tax debt. If in-business taxpayers can fully pay liabilities from current assets and/or income they do not qualify for installment agreements. Full payment will be requested.
More from H&R Block
If your business does not qualify for a streamlined or in-business trust fund express installment agreement, the IRS will require that you complete a Form 433-B, Collection Information Statement for Businesses. The form requires that you list all of the business’ assets, income and expenses. The IRS will first look at the business’ ability to pay the tax debt in full by selling any assets that are not necessary for the production of income. Then they will look at the monthly net profit to determine the monthly payment the business will be able to make and stay current with operating expenses and tax payments including payroll taxes, if applicable.
Get help from an expert
Your local H&R Block tax pro can look into your issue and deal with the IRS for you.
Learn how to request an IRS payment option, like an extension to pay or an IRS installment agreement, when your business owes taxes and can't pay.
Liens and levies are tools the IRS uses to collect back taxes. Learn more about each one -- and how to avoid tax liens and levies by working with the IRS.
Learn the three main benefits of engaging a power of attorney to research your IRS account and resolve your tax problems. Get the facts from the experts at H&R Block.
Understand the most common types of IRS business tax penalties for filing and paying late, and your possible options for requesting IRS penalty relief.