Partner program
My Client Owes a Large Tax Bill and Can’t Pay It: Funding Options Accountants Can Suggest
The return is done, the number is bigger than the client expected, and the cash is not there. You can explain the IRS payment plan. You can also point to business funding that pays the bill in one go and keeps the client current. Here is how the two compare and when each one fits.
Can a Business Get Funding to Pay a Tax Bill?
Yes. Tax payments are one of the most common uses for working capital placed through RAN Funding’s lender network, alongside Business Term Loans and business lines of credit for clients who qualify. The funding pays the bill in full and the client repays the funder on a schedule, instead of carrying an IRS balance with penalties and interest accruing. Accountants and CPAs refer the client through RAN Funding’s partner program; one dedicated specialist reviews the file, and you keep the client relationship.
What You Are Looking At
A tax bill the business cannot pay in full is a cash-flow problem with a deadline. The IRS charges a failure-to-pay penalty of 0.5 per cent of the unpaid tax per month, up to 25 per cent, plus interest, and the penalty keeps running while an installment agreement is in place, at a reduced rate.1 The clock starts on the due date, not when the client gets around to it.
In the Federal Reserve Banks’ 2024 Small Business Credit Survey, fewer than half of employer firms that applied for financing received the full amount they sought.2 A client who waits until the bill is overdue, and then applies with a lien on the record, is applying from a weaker position than the same client the week the return was filed.
IRS Payment Plan vs. Business Funding
| IRS installment agreement | Business funding | |
|---|---|---|
| What happens | The client pays the IRS monthly over up to 72 months | The funder pays the business; the business pays the IRS in full and repays the funder |
| Cost | Reduced failure-to-pay penalty plus interest, both set by the IRS | Set by the funder on the file, stated in dollars on the offer |
| Speed | Online application; approval can be fast for balances under the IRS threshold | Working capital can fund in as little as 24 hours after approval |
| Effect on the record | The balance stays open with the IRS; a lien is possible on larger balances | The IRS balance is closed; the business owes a private funder |
| Best for | A small balance the business can clear in a few months | A larger balance, a client who wants the IRS closed out, or one who needs working capital on top of the tax |
The two are not exclusive. Some clients take funding for the bulk of the bill and an installment agreement for the remainder, or use funding to clear a balance that an agreement has been dragging on for a year.
When Funding Is the Better Answer
Funding makes sense when the client:
- Wants the IRS closed out. No open balance, no lien risk, no monthly IRS payment on the books.
- Owes more than the business can clear quickly. A balance that would take years on an installment plan.
- Needs working capital as well. The tax bill is one of several demands on cash this quarter.
- Has strong deposits. Steady revenue supports the repayment without strain.
- 1+ year in business and $20,000+ in average monthly revenue.
Point to the IRS plan instead when the balance is small, the business can clear it in a few months, and there is no other cash-flow pressure.
Which Products Fit a Tax Payment
| Product | Fit | Notes |
|---|---|---|
| Working capital | The usual route; fastest | $10,000 to $500,000+, funded in as little as 24 hours after approval |
| Business line of credit | A client who will face the same bill next year | Up to $2 million, drawn as needed |
| Business Term Loans | A larger balance for an established client with stronger credit | Up to $2 million, up to 3 years |
Nothing here is a guarantee of approval. The specialist says which products the file supports.
What the Specialist Needs
- The owner’s name and number to start.
- The 3 most recent business bank statements (4 in NY, CA or VA), every page, if you have them.
- The amount due and the due date.
- Any other open loans or advances, with balances.
As the client’s accountant you usually hold most of this already. Sending it complete turns a week of back and forth into an answer in a day.
How the Referral Works, Step by Step
RAN Funding is a broker, not a lender. One application for our lender network and one dedicated specialist. You make the introduction; we handle the funding process.
- Sign up on the partner page. Two minutes. Select CPA / Accountant. We call within one business day to walk through the partner agreement.
- Make the introduction. The owner’s name and number, and a heads-up that we will be calling. No licensing is needed for a basic referral introduction.
- The specialist reviews the file and calls the owner within one business day. If you want to be on the call, say so.
- The owner sees the options the file supports, with every term explained before anything is signed.
- The deal funds and you are paid the referral commission in the partner agreement. Renewals on your referrals pay you too.
Your client stays your client. RAN Funding contacts them only about the funding they asked for. No cross-selling, no marketing lists.
How to Raise It With the Client
Clients hear a tax bill they cannot pay as bad news with no exit. Offer the two routes side by side:
- “You can set up a payment plan with the IRS, and the penalty and interest keep running while you do.”
- “Or the business can take funding, pay the IRS in full now, and repay the funder on a schedule. Let me have someone look at what the file supports.”
- “Either way, the worst option is doing nothing until the notice arrives.”
What to Keep in Mind
Get the client’s agreement before sharing anything. Do not describe yourself as a lender, and do not promise an approval. Nothing is guaranteed until underwriting reviews the file.
Disclosure rules vary by state. California, for example, requires a provider extending a specific commercial financing offer to give the recipient disclosures at the time of the offer. MCA disclosure laws by state is a starting point, not legal advice.
How to Start
Go to the RAN Funding partner program page and fill in the short form. Say so if you have a client who needs funding now.
For the program as it applies to your profession, see the guide for accountants and CPAs. You can also call 1-877-522-6045, Monday to Friday, 9am to 6pm ET.
Common Questions
Can a business get a loan to pay taxes?
Yes. Tax payments are a common use for working capital, business lines of credit and Business Term Loans placed through RAN Funding’s lender network. The funding pays the bill in full and the business repays the funder on a schedule.
Is funding better than an IRS installment agreement?
It depends on the balance and the client’s cash flow. An installment agreement suits a small balance the business can clear in a few months. Funding suits a larger balance, a client who wants the IRS closed out, or one who needs working capital as well.
How fast can a client get funding for a tax bill?
Working capital can fund in as little as 24 hours after approval. The specialist calls the owner within one business day of the referral.
Who qualifies for funding?
Best-fit clients have 1+ year in business, $20,000+ in average monthly revenue, a business bank account with active deposits and a need for $10,000 to $500,000+ in working capital, up to $2 million on some products. This is business financing only, for established businesses. Not every file can be placed.
Do I need a license to refer a client?
No licensing is needed for a basic referral introduction. You give the owner’s name and number; RAN Funding handles the funding process.
Will RAN Funding contact my client about anything else?
No. Only about the funding they asked for. No cross-selling and no marketing lists, and your client stays your client.
How am I paid?
A referral commission set in the written partner agreement, paid when the deal funds. Renewals on your referrals pay you as well. Nothing is paid on a file that does not fund.
Sources
- Payment plans and installment agreements — Internal Revenue Service
- 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey — Federal Reserve Banks
- California Financing Law: Commercial Financing Disclosures — California Department of Financial Protection and Innovation
Have a Client Staring at a Tax Bill?
Sign up in two minutes. We call within one business day and review the file.