Glossary · People and paperwork
IRS payment plan
In short
An agreement with the IRS to pay overdue taxes in installments. Lenders will review this history closely as part of your financial character.
What it means in a deal
If you or the seller have an IRS payment plan, the lender needs to see it's current and manageable. Unpaid taxes can jeopardize loan approval or become a lien against the business's assets.
Related terms
Common questions about IRS payment plan
- 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?
- What happens if a buyer for an SBA 7(a) loan has an active tax lien, even if on a payment plan?
- Is a comprehensive business plan mandatory for an SBA 7(a) loan?
- Is a detailed business plan necessary for an SBA 7(a) loan application?
- How important is a business plan for an SBA 7(a) loan application?
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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