The IRS has expanded eligibility for Simple Payment Plans, formerly known as Streamlined Installment Agreements, making these long-term payment arrangements available to business taxpayers as well as individuals.
This change reflects updated IRS processing procedures that took effect on December 3, 2025, and consolidates several business installment agreement options under a single, simplified framework.
What Are Simple Payment Plans?
Simple Payment Plans allow qualifying taxpayers to pay outstanding federal tax liabilities over time through a streamlined installment agreement process. These plans are designed to reduce administrative burden while helping taxpayers remain compliant.
Previously, access to streamlined arrangements for businesses was more limited. Under the updated rules, certain business installment agreements are now processed using the same simplified qualifications that apply to individuals.
General Qualification Requirement
All applicants—individuals and businesses—must be current with all required tax filings and payment obligations before applying for a Simple Payment Plan.
Business Eligibility Thresholds
Under the expanded rules, businesses may qualify if their assessed balance of tax, penalties, and interest falls within the following limits:
Businesses with trust fund taxes:
- $25,000 or less, or
- $50,000 or less for an out-of-business sole proprietorship
Businesses without trust fund taxes:
- $50,000 or less
Individuals:
- $50,000 or less
Taxpayers who exceed these thresholds may still qualify for other IRS payment arrangements, depending on their facts and circumstances.
How to Apply
Businesses or their authorized representatives may apply by:
- Calling the IRS Business Tax line at 800-829-4933, or
- Visiting a local Taxpayer Assistance Center (TAC)
Individuals may apply by:
- Signing in to their IRS online account, or
- Calling 800-829-1040 or the number listed on their IRS notice
Why This Matters
The expansion of Simple Payment Plans provides additional flexibility for businesses and nonprofit organizations with taxable activities that are working to resolve outstanding liabilities. By streamlining the qualification process, the IRS is making it easier for eligible taxpayers to address tax debt while maintaining compliance.
Organizations facing payment challenges should evaluate whether a Simple Payment Plan is appropriate or whether another resolution option may better fit their situation.
How TrimnerBeckham Can Help
TrimnerBeckham advises nonprofit organizations and related entities on tax compliance and resolution strategies, including evaluating IRS payment options and ensuring ongoing filing compliance. Understanding eligibility requirements and selecting the right resolution approach can help organizations address liabilities while minimizing disruption to operations.
