IRS Streamlined Agreement for Business Taxpayers

IRS streamlined installment agreements give qualifying businesses up to six years (72 months) to pay back taxes. However, there are strict rules on the amount you can owe and the types of tax debt that can qualify. The IRS also has different rules based on whether you're still in operation and whether or not you're a sole proprietor. 

Read on to learn more about the streamlined agreement, or use TaxCure to find a tax resolution professional who's experienced with business taxes today.

Key takeaways

• What? An IRS payment plan for up to 72 months on business taxes.
• Who? In operation or out-of-operation businesses that owe $25,000 or less ($50,000 or less for out-of-business sole proprietors).
• How? Request by calling the IRS or filing Form 9465.
• Why? To help businesses get out of tax debt.
• Additional requirements? If you're still operating, you must only owe non-payroll tax debt. You also must be up to date on filing and payment requirements.

What Is an IRS Streamlined Installment Agreement?

The streamlined installment agreement is a monthly repayment plan for taxpayers who owe business taxes. You get up to 72 months to pay the following types of tax debt:

• Up to $25,000 in non-payroll tax debt for an in-operation business. 
• Up to $25,000 in any type of tax debt for an out-of-operation business. 
• Up to $50,000 in any type of tax debt for an out-of-operation sole proprietor. 

As long as you meet the above requirements and are up to date on filing returns, paying estimated quarterly tax payments, and making payroll tax deposits if applicable, the IRS will generally approve your request. These payment plans are called streamlined because you don't have to provide a financial disclosure (aka a collection information statement). 

If you're a sole proprietor without employees, you may qualify to set up an installment agreement as an individual. There are several different types of IRS payment plans for varying situations. A tax pro can help you find the best option for your situation. 

How to Apply

If you're no longer operating or only owe income tax from a 1040 form, you can apply by filing Form 9465 (Installment Agreement Request). If you're still in operation, you must contact the IRS by phone to request this agreement. 

Generally, you only need to provide basic details about your business and the tax debt when you apply. However, if you defaulted on an installment agreement in the past 12 months or owe more than $25,000 (only applicable to out-of-business sole props), you may need to provide more information about your financial situation. In these cases, complete Part II of Form 9465, which asks about your country of residence, marital status, number of dependents, pay periods, and take-home pay. You may have to share information about your spouse's income in some cases as well. 

Can businesses apply online?

Your business can only apply online if you owe less than $25,000 in taxes and you can pay off the balance within 24 months. 

What If the IRS Rejects Your Request?

If the IRS rejects your request for a streamlined agreement, the tax debt will be due in full. Then, the IRS may pursue involuntary collections such as issuing tax liens against your business and seizing business assets in a way that ultimately forces you to shut down.

However, you have the right to appeal. You must enter your appeal within 30 days of the rejection. When appealing, you can present new information or talk with Appeals about other payment options. 

What to Expect While You're on a Streamlined Agreement

While you're on a streamlined agreement, the IRS will not initiate any new collection actions against you as long as you make your scheduled monthly payments. In most cases, the IRS will not file a federal tax lien. Interest and a 0.25% failure-to-pay penalty will continue to accrue on your account until you have paid in full. 

If you miss a payment, your plan will go into default, but you can generally avoid termination if you make up the payment within 30 days. The IRS may send you an annual reminder of how much you owe, even while you're making payments. 

Other Payment Options for Business Tax Debts

Here are some other options you may want to consider if you owe business taxes:

• In-business express installment agreement - Take up to 24 months to repay up to $25,000 in payroll or other business tax debt.
• Financially verified installment agreement - If you don't qualify for an in-business express or a streamlined agreement, contact the IRS directly. They may approve a payment plan based on your history of compliance and the information provided on Form 433-B (Collection Information Statement for Businesses).

Business tax debt can be incredibly hard to deal with – the IRS has stringent expectations for businesses, and if you have a history of late tax payments or late payroll deposits, they may not be willing to work with you. To improve your chances of success, you should work with a tax pro who has dedicated experience with business tax problems. 

FAQs About Streamlined Installment Agreements

What is the due date for streamlined installment payments?

When you request your payment plan, you can choose any due date between the 1st and the 28th of the month. Select a date that works best with your budget. 

What is the minimum payment on a streamlined agreement?

To estimate the minimum payment, divide the number of months in the payment plan term by the amount owed, and then round up a bit to account for tax. For example, if you owe $14,400 and want to make payments for 72 months, the minimum payment is $200. 

That is how the IRS instructs you to calculate your minimum payment on Form 9465, but again, you should round up a bit to account for interest and penalties. 

Can you make changes to your agreement?

You may be able to make certain modifications to your installment agreement. For example, you can change your payment date or update your bank details if you are paying with direct debit. To request changes, call the IRS. 

Can individuals get a streamlined agreement?

No, as of 2025, the streamlined agreement is only for business taxes. Prior to 2025, individuals could apply for a streamlined agreement. However, the IRS changed that rule and rolled out the new Simple Payment Plan, which gives qualifying individuals up to 10 years to repay tax debt.

Can you set up a streamlined agreement on state business taxes?

No, the Streamlined Agreement is an IRS payment plan. If you owe state taxes, you must work directly with that state to request payments – every state revenue agency has its own rules on tax payments. 

Is the streamlined plan part of the Fresh Start Program?

The streamlined installment agreement was originally rolled out with the Fresh Start Initiative, which was a series of updates the IRS made to its collection processes in 2011. Over the next 15 or so years, the IRS made many changes to this program. 

If you hear a tax relief advertisement talking about the Fresh Start program and how you need to apply now, they are being misleading. There's no Fresh Start application or program – it was just a collection of administrative changes made over a decade ago, and tax relief companies love to use that phrase in their advertisements. 

Get Help With a Streamlined Agreement Today

Use TaxCure to find a tax professional who can help you deal with business or individual tax debt today. When you search for a pro on TaxCure, you get access to a trustworthy tax professional who will customize a solution based on your unique situation. During the search process, you can use the filters to narrow down the results to see pros who have the exact experience you need. Don't wait – get relief today.