Glossary · People and paperwork
IRS Installment Agreement
In short
This is a payment plan with the IRS for past-due taxes. If the seller or buyer has one, the SBA lender will scrutinize it closely to ensure it's current and doesn't pose a risk to loan repayment capacity.
What it means in a deal
Both the buyer and seller must be current on all federal taxes. If either has an existing IRS installment agreement, the lender will require proof of timely payments and assess the remaining balance. Significant tax debt or a history of default on these agreements can impact loan eligibility or require full payoff before closing.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about IRS Installment Agreement
- What if the business I'm acquiring currently owes money to the IRS or state tax authorities?
- What happens if my business has outstanding federal taxes, like IRS debt, when applying for an SBA loan?
- How does life insurance effectively fund a business buy-sell agreement?
- How does the purchase agreement structure affect an SBA partner buyout?
- How does an operating agreement impact an SBA partner buyout loan?
- What happens if the seller terminates the purchase agreement mid-process?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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