Need a Business Tax Payment Plan?
We can help you set up a payment plan with the IRS or your state ASAP!
Can I Request a Payment Plan for Late Business Taxes?
Yes! If your business owes past-due income, payroll, or sales taxes, the IRS and most state revenue departments offer payment plans, also known as installment payment agreements (IPAs), that allow you to pay what you owe over time.
Although these plans can provide breathing room, each tax agency has its own application process, requirements, and approval criteria. In some cases, you may need to provide financial statements, proof of hardship, or meet specific filing compliance standards. Our experts can help you determine the best payment plan for your situation and handle the paperwork, so you can focus on getting back to business.
Business Payment Plan Application & Eligibility Requirements
To qualify for a business tax payment plan (IRS or state), you generally must be up-to-date on all your required tax filings. Additionally, you cannot be in an active bankruptcy proceeding or have a pending Offer in Compromise (OIC).
IRS Business Payment Plan Requirements
The IRS offers long-term payment plans for business owners who are unable to pay their tax obligations in full. To apply online, you must owe $25,000 or less (including penalty fees and interest) and have filed all required returns. You’ll need to pay a setup fee (see chart below) and provide the following information:
- Your employer identification number (EIN)
- Date the business was established
- The caller ID from your notice
- If you have not received a notice or you recently filed, you’ll need to include the balance due from the most recent return, as well as the tax form and tax period for which you filed.
Application Fees
| Payment Type | Setup Fee |
|---|---|
| Direct Debit | $22.00 |
| Non-Direct Debit (EFTPS, check, credit card, etc.) | $69.00 |
| If you’re applying by phone, mail, or in person, the setup fees increase to $107 for Direct Debit and $178 for all other payment types. | |
Business owners who owe more than $25,000 may still qualify for an installment payment agreement, but the application cannot be processed online. Additional financial documentation, such as balance sheets and income statements, may also be required.
Sole proprietors and independent contractors should apply for a payment plan as individuals. Although setup fees are the same as a business payment plan, the total debt allowed increases to $50,000 for online applications.
State Business Payment Plan Requirements
As we mentioned previously, each state has its own application process and eligibility requirements. Here are just a few examples.
| State | How to Apply | Setup Fee | Max Debt Amount | Downpayment Required? | Other Details |
|---|---|---|---|---|---|
| California | Online or by phone | $50 | $25,000 | No | Up to 12 months to pay the balance |
| Florida | Contact the Department of Revenue and provide financials | $0 | N/A | 25% of total tax debt | Up to 12 months to pay the balance |
| Georgia | Online or by mail | $50 – $100 | N/A | No | Up to 60 months to pay the balance |
| New York | Online or by phone | $0 | $20,000 | Up to 20% of total tax debt | Up to 36 months to pay the balance |
| Pennsylvania | Phone, email, or fax | $0 | $50,000 (full financial disclosure required for higher amounts) | No | Up to 12 months to pay the balance |
| Texas | Contact the local comptroller’s field office | $0 | N/A | No | Payment plan approval and 1st payment must be received before the delinquency date |
To learn more about business payment plan options and requirements in your state, visit its Department of Revenue (DOR) website.