Ability to Pay – Business

 

IRS Definition

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.

Learn more about how to handle an IRS tax bill.

Get help from an IRS expert

H&R Block’s experts can solve any IRS problem, no matter how complex.

Make an appointment

Or call 855-536-6504

Related Information

Private: What To Do If You Can’t Pay Your Business Taxes

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.

How to Avoid IRS Liens and Levies

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.

Power of Attorney: It’s How Your Tax Pro Deals with the IRS For You

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.

Private: How to Address IRS Business Tax Penalties

Understand the most common types of IRS business tax penalties for filing and paying late, and your possible options for requesting IRS penalty relief.