Unpaid taxes from passthrough LLC - Should I file Form 433-B or 433-A as an individual?
So my LLC from about 3 years ago went under when I couldn't keep up with state fees. It was a passthrough entity, not an S-corp, so everything tax-wise rolled onto my personal returns. The business is essentially gone - no assets, no accounts, nothing left. I'm now trying to deal with some unpaid taxes from that period and looking into an Offer in Compromise with the IRS. But I'm really confused about which form I need for the OIC application process. The IRS website has a bunch of technical language that's not super clear to me. Since the LLC was just a passthrough on my personal taxes, should I be submitting Form 433-A (for individuals) or Form 433-B (for businesses)? The LLC technically doesn't exist anymore, but the tax debt originated from that business activity. Anyone dealt with this specific situation before? I'm trying to get this sorted out without making things worse.
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Hazel Garcia
In your situation, you should file Form 433-A, not Form 433-B. Here's why this matters: Form 433-A is for individuals, which is appropriate since your LLC was a passthrough entity that was reported on your personal tax returns. The IRS considers the tax liability to be yours personally, not a separate business entity's responsibility. Form 433-B would only be appropriate if your business was still operating OR if it had been taxed as a corporation. Since your LLC was a passthrough and is now dissolved, the 433-B isn't applicable to your situation. When you submit your 433-A for the Offer in Compromise, make sure to explain that the tax debt originated from a now-defunct passthrough LLC. Include documentation showing the LLC is dissolved if you have it, but don't worry if you don't - the IRS can verify this through state records.
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Laila Fury
•Thanks for the explanation. But what if there were some business expenses that were never claimed? Should those be included somehow on the 433-A form? And does the fact that the LLC wasn't formally dissolved (just lapsed due to non-payment) change anything about this advice?
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Hazel Garcia
•Any unclaimed business expenses from the LLC period should be addressed through filing amended returns for those tax years, not through the 433-A form. The 433-A is strictly about your current financial situation and ability to pay. Whether the LLC officially dissolved or simply lapsed due to non-payment doesn't change my recommendation. The IRS is concerned with the tax classification (passthrough vs. corporation) rather than the formal dissolution status. As long as the LLC was a passthrough entity reported on your personal returns, Form 433-A is the correct form regardless of how the business ended.
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Geoff Richards
After dealing with a similar situation with my failed consulting business, I discovered taxr.ai and it was incredibly helpful. I was also confused about which forms to file for my OIC and wasn't sure if my LLC's passthrough status changed things. I uploaded my old tax documents to https://taxr.ai and it analyzed everything, flagging exactly where my tax liability originated and which form I should use. It even highlighted where my LLC's passthrough status was documented in my previous returns, which helped confirm I needed 433-A not 433-B.
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Simon White
•Does it actually help with the OIC process itself? I'm in a similar situation and wondering if it's worth trying. How detailed is the guidance for the actual form completion?
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Hugo Kass
•I'm skeptical about these tax services. How does it compare to just talking to a CPA? I've been burned before by online "tax help" that just gave generic advice I could've found on the IRS website.
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Geoff Richards
•It doesn't complete the OIC forms for you, but it shows you exactly where in your tax history the liabilities originated and explains how your business structure affects which forms you need. It provided me with specific references to IRS guidelines that applied to my situation, which was really helpful for understanding why 433-A was appropriate for my passthrough entity. As for comparing to a CPA, I actually used the taxr.ai analysis during my consultation with my accountant, and she was impressed with how thorough it was. It saved me money on billable hours since the system had already organized and analyzed my tax documents before my appointment. The advice wasn't generic at all - it was specifically tailored to my situation based on my actual tax history.
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Hugo Kass
I wanted to follow up about taxr.ai since I was skeptical at first. I decided to try it with my mess of tax documents from my failed web design business. The system actually identified that I had incorrectly classified some business income on my Schedule C from my LLC years. It explained why I needed 433-A and not 433-B for my OIC application, and even pointed out some deductions I had missed that could potentially reduce my tax liability. I ended up showing the analysis to my tax preparer who agreed with the findings and is helping me file amended returns before proceeding with the OIC. Really surprised by how helpful it was.
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Nasira Ibanez
If you're planning to submit an OIC, you should know that dealing with the IRS directly is going to be a nightmare. I spent WEEKS trying to reach someone to clarify some questions about my 433-A form for my old landscaping business. After 20+ attempts calling the IRS and being disconnected or on hold for hours, I found https://claimyr.com and used their service to get a callback from the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Got a call back in about 2 hours and finally spoke to someone who confirmed I needed the 433-A since my LLC was a passthrough. Saved me from submitting the wrong form and potentially delaying my OIC processing.
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Khalil Urso
•How does this service actually work? I don't understand how they can get the IRS to call you when nobody else can get through.
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Hugo Kass
•Yeah right. There's no way this actually works. The IRS doesn't just call people back because some service asks them to. I've been dealing with tax issues for years and nothing gets the IRS to move faster.
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Nasira Ibanez
•They use an automated system that navigates the IRS phone tree and waits on hold for you. When their system reaches a live IRS agent, it requests a callback to your number and then disconnects. It's not magic - it's just technology that sits on hold instead of you. The IRS does offer callbacks in many of their departments, but the problem is reaching a human to request one. This service just automates the painful part of sitting on hold for hours. I was skeptical too, but I got a call back from an actual IRS agent about 2 hours after using the service, and they answered all my questions about which form was appropriate for my passthrough LLC situation.
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Hugo Kass
I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was still desperate to talk to someone at the IRS about my OIC forms, so I tried it anyway. Within about 90 minutes, I got a call directly from an IRS representative who actually specialized in OIC applications. They confirmed that since my LLC was a passthrough entity and now defunct, I definitely needed to file Form 433-A, not 433-B. They even explained some nuances about reporting my current financial situation that the IRS website never made clear. I'm shocked this actually worked after spending months trying to get through on my own.
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Myles Regis
Just want to add that I went through this exact situation last year. One thing to watch for: make sure you have documentation showing when the LLC effectively ended operations, even if you didn't formally dissolve it. The IRS asked me for proof of when business activities ceased. I used my last bank statement, final client invoice, and the lapsed state registration as evidence. Made the OIC process much smoother.
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Salim Nasir
•That's really helpful, thanks! Do you happen to remember what specific paperwork they accepted as proof? And did you file the 433-A like others are suggesting?
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Myles Regis
•I provided my last business bank statement showing the account was closed, the final invoice I sent to a client, and the notice from the state showing my LLC was no longer in good standing due to non-payment of fees. They accepted all of these as evidence of when business activities stopped. Yes, I filed Form 433-A since my LLC was a passthrough entity. The revenue officer specifically told me that 433-B would have been incorrect in my situation because the tax liability was technically mine personally, not the LLC's, due to the passthrough nature of the business.
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Brian Downey
Something nobody mentioned yet - make sure you're using the correct versions of the forms. The IRS updated Form 433-A in 2023 and many people still use old versions they find online. Go directly to IRS.gov to get the current version.
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Jacinda Yu
•Is there a significant difference between the old and new versions? I found one from a few years ago in my files and was planning to use that as a template.
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Landon Flounder
Just wanted to add - make sure you check if your state requires separate OIC forms for state taxes. I made this mistake with my passthrough LLC. Got the federal OIC sorted out with 433-A but completely forgot about state taxes until they sent me a collection notice. Each state has different requirements for defunct LLCs with tax debt.
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