Contractor Behind on Taxes and Bills: Options Before It Gets Worse

Quick facts: Washington

IRS: Payment plans; businesses call the number on the notice
Washington DOR: Self-service payment plans over 3, 6, 9 or 12 months for qualifying accounts
Suppliers and lenders: Call before you miss, not after
Refinancing: SBA-guaranteed loans list refinanced business debt as a use

Fees, rules and rates change, often on July 1 and January 1. Verify every item with the responsible agency before you rely on it.

Short answer: Contact the agency or creditor before you miss, not after. The IRS offers payment plans; business taxpayers call the number on their notice. Washington DOR offers self-service payment plans over 3, 6, 9 or 12 months for qualifying excise accounts. Suppliers and lenders often agree to terms if you call early with a plan. SBA-guaranteed loans list refinancing business debt among their uses. Talk to a CPA before consolidating.

Updated October 12, 2026. Requirements and fees change; confirm with the agency named on this page.

Debt gets more expensive the longer you avoid it: penalties, interest, and lost options. Call early, with your numbers in hand.

IRS

The IRS says: "Business taxpayers should call the number on your notice" and "If you are a sole proprietor or independent contractor, apply for a payment plan as an individual." Details at irs.gov payment plans.

Washington Department of Revenue

DOR: "Entering into a payment plan is a way for you to regain control of a difficult situation." You choose "Whether you will pay the debt in 3, 6, 9, or 12 months" for qualifying accounts. See Washington sales tax for contractors.

Suppliers, lenders, card companies

Call before the payment is late. Bring a 13-week cash flow showing what you can pay and when.

Consolidating or refinancing

The SBA lists "refinanced business debt" among the uses of SBA-guaranteed loans, and "7(a) loans are delivered by SBA 7(a) lenders." A Washington SBDC advisor can help you prepare. Have a CPA check any consolidation offer, especially one that turns business debt into personal debt.

Where Contractor Lane Operator fits

Operator walks you through a debt and obligation inventory and a restructuring preparation comparison, so you walk into the call with the IRS, DOR, lender or CPA prepared. $79 a month, cancel anytime.

General education, not legal, tax or financial advice. Talk to a licensed professional about your situation.

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Common questions

Can a contractor get a payment plan with the IRS?

Yes. The IRS offers payment plans; business taxpayers call the number on their notice, and sole proprietors apply as individuals.

Does Washington DOR offer payment plans?

DOR offers self-service payment plans for qualifying excise and some other accounts, over 3, 6, 9 or 12 months.

Can I consolidate business debt?

SBA-guaranteed loans list refinanced business debt among their uses, through SBA lenders. Have a CPA review any offer first.

Sources

Official pages checked on 2026-10-12.

About Contractor Lane

Contractor Lane is built and maintained by working home-service operators. Every legal or numeric claim on this page was checked against the official source listed below on 2026-10-12.

General educational information for contractors. Requirements and fees change. Contractor Lane is not a law firm, CPA, insurance agency, or licensing agency. Verify each item with the responsible agency.