Simple payment plans now expanded to businesses

Taxpayers who can’t pay in full often need a practical path forward. The Internal Revenue Service recently expanded that path. Simple payment plans, long-term payment plans available to qualified taxpayers, now include more business taxpayers under updated rules. 

Formerly known as streamlined installment agreements, simple payment plans live up to their name. They don’t require a collection information statement, lien determination or trust fund recovery penalty determination. For many clients, that removes the biggest procedural hurdles and speeds up resolution.

More than 90% of individual taxpayers with balances due are expected to qualify for a simple payment plan. Now, qualifying businesses can also take advantage of this simplified process.

Here is what tax professionals need to know. 

What is a simple payment plan?

A simple payment plan is a long-term installment agreement for taxpayers who meet certain balance-due thresholds and are current with filing and payment requirements. “Current” means all required returns are filed and any required estimated tax payments or federal tax deposits are up to date. 

Unlike more complex installment agreements, the IRS does not require any Form 433-series collection financial statements for these plans. The IRS also skips a lien determination and, in trust fund cases that qualify, a trust fund recovery penalty determination at the outset. 

That streamlined approach reduces administrative burden for both the IRS and practitioners. It also gives clients quicker certainty.

Who qualifies for these plans?

Both individuals and businesses must be current with all filing and deposit requirements. Individuals qualify if they owe $50,000 or less in assessed taxes, penalties and interest. Businesses qualify under updated thresholds: 

With trust fund taxes:

• $25,000 or less in assessed taxes, penalties and interest
• $50,000 or less for an out-of-business sole proprietorship

Without trust fund taxes:

• $50,000 or less in assessed taxes, penalties and interest

These updated qualifications now cover cases previously processed as In-Business Trust Fund Express Agreements and Business Streamlined Installment Agreements. As of Dec. 3, 2025, the IRS processes those under the simple payment plan framework. 

Here’s how to apply

The application path depends on the taxpayer type. Individuals can apply online through their IRS online accounts. They can also call the number listed on their notice or 800-829-1040 to request a plan. 

Businesses or their authorized representatives generally apply by calling 800-829-4933 or visiting a local Taxpayer Assistance Center. The option is also available when working directly with an IRS or private collection agency employee assigned to the account. Certain out-of-business sole proprietors may qualify to apply online.

For practitioners, this means early evaluation is key. Confirm the assessed balance, verify compliance and determine whether the client falls within the applicable threshold. If they do, a simple payment plan may be the most efficient resolution tool available.

Why this matters for tax pros

Cash flow issues aren’t limited to individuals. Many small businesses, especially those with payroll obligations, struggle to pay balances in full. By expanding simple payment plans to more business taxpayers, the IRS has created a more predictable and streamlined resolution path.

The absence of a collection information statement requirement saves time and reduces friction. It also allows you to move clients out of active collection status faster.

That said, practitioners should not overlook the fundamentals. Clients must stay compliant going forward. A missed deposit or unfiled return can default the agreement and put the account back into enforced collection.

If a client does not qualify for a simple payment plan, other installment agreement options remain available. In some cases, a collection information statement and more detailed financial analysis may be required. 

Action steps for your practice

Review open balance-due cases to see which clients fall under the updated thresholds. Confirm compliance before contacting the IRS. Educate business clients, especially those with payroll tax exposure, about the potential availability of this simplified option. 

Simple payment plans won’t solve every collection issue. But for many individuals and businesses, they offer a clear, structured way to resolve debt without the typical paperwork and delay of more complex agreements. 

When clients need time to pay, early evaluation and prompt action can significantly reduce enforcement risk.