Tax Liens & Business Funding
Yes — with one condition. Businesses with IRS or state tax liens qualify for MCA every week. The critical difference between approved and denied is whether you have an active payment plan in place. Here's exactly how it works and what you need to provide.
Yes, you can get an MCA with a tax lien — IF you have an active IRS or state installment agreement and your payments are current. An unaddressed tax lien with no payment plan is a disqualifier. The combination of a formal payment arrangement + strong monthly deposits ($15,000+) is what gets businesses with tax liens funded. MCA providers are not banks — they evaluate revenue, not just credit profile.
The same tax lien situation can result in approval or denial depending on these factors.
MCA underwriting weighs 5 factors — here's how each plays when a tax lien is present.
Real-world situations and how they typically resolve.
Proactively providing these documents speeds up approval significantly when a tax lien is present.
Yes. MCA providers fund businesses with IRS and state tax liens regularly — IF there is an active payment plan in place and payments are current. An unpaid, unaddressed tax lien with no payment arrangement is a significant red flag. The key distinction is whether you're managing the debt or ignoring it.
A federal tax lien creates a lien on business assets, which MCA providers are aware of. However, MCA is a purchase of future receivables — not a traditional secured loan — so the lien's impact on approval is moderate, not disqualifying. Active payment plan + strong deposit volume is the combination that gets businesses with tax liens funded.
You will typically need: your IRS installment agreement letter (Form 9465 approval), the most recent 3 months of business bank statements, and proof that recent installment payments have been made. Optionally, a brief explanation letter helps underwriters understand the situation without having to guess.
Owing back taxes does not automatically disqualify you. The critical question is whether there is an active payment arrangement. Businesses with a formal IRS installment agreement, making consistent payments, and showing strong deposit volume are funded routinely.
MCA does not directly affect your IRS installment agreement. The advance is a purchase of receivables, not a loan, and it does not appear on your credit report as traditional new debt. Consult your tax professional if your financial situation materially improves — the IRS may request plan modification in some cases.
Tax lien + low FICO requires strong deposits to offset. A business with $25,000+/month in deposits, an active IRS payment plan, and a 530 FICO can still find approval — but factor rates will be on the higher end. Revenue strength is the primary approval signal for this combination.
Tax liens don't automatically disqualify you. If you have an active payment plan and solid monthly deposits, there may be a path to funding. One-page application, 3 months of bank statements + IRS payment plan letter, decision in 24–48 hours.
Or call/text: 330-238-3003
T.A.G. Business Funding
500 FICO minimum. Bank declines OK. Revenue matters more than credit score. Most decisions in 24 hours.
500 FICO minimum · $8K+/month revenue · Funded in 1–3 days
More Funding Resources
