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At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is how we get compensated.
At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is
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If you owe back taxes, you have the option of paying the full amount you owe in installments. Most taxpayers qualify for an installment agreement because it has simple qualifying criteria. If you have the ability to pay your full back tax amount, then installment agreements can be the right choice for you. A Streamlined Installment Agreement is a type of installment agreement where you pay your back taxes within 72 months if you owe less than $50,000 in back taxes.
How to Qualify for a Streamlined Installment Agreement
A Streamlined Installment Agreement is only for those taxpayers that owe $50,000 or less in back taxes. You can calculate the total amount of back taxes you owe by including your unpaid tax bill, assessed penalty and interest, and any other assessments on the tax module. If you divide that amount by 72 (months – the payment period), then you get the minimum amount you will need to pay each month.
It’s important to calculate the amount of back taxes you owe correctly because the IRS will ask you to pay the full back tax amount. If your unpaid tax bill, including penalties and interest, comes over $50,000, then you won’t be able to apply for a Streamlined Installment Agreement.
The amount you owe needs to be paid off either within 72 months or before the Collection Statute Expiration Date (CSED), whichever is earlier. The IRS does not ask for a financial statement in this situation, making it easier and quicker to qualify for this agreement.
Apart from the dollar cap, there is another basic qualifying factor for an IRS Streamlined Installment Agreement. You need to file all your tax returns before you can apply for this agreement. This holds true for all IRS back tax resolution plans.
Making Payments under a Streamlined Installment Agreement
If your back taxes are between $20,000 and $50,000, you need to make the payments as a Direct Debit Installment Agreement or a Payroll Deduction Installment Agreement. The total amount owed needs to be paid within 72 months from the day the agreement starts.
For any back tax resolution plan, individual taxpayers whose back taxes are over $25,000 need to make payments using Direct Debit. For businesses, the back taxes amount is much lower at $10,000 for it to be paid by Direct Debit.
If you are unable to pay an installment after entering the agreement, the IRS estimates your financial capability to pay the installments.
You can apply for a Streamlined Installment Agreement in person, through postal mail, or by phone. However, before you choose to apply, make sure that you qualify for it and can fulfill all the payment requirements.
The Impact of Penalties and Interest on Back Taxes
When using a Streamlined Installment Agreement for paying back taxes, it is important to consider IRS penalties and interest. Until you pay the full back taxes amount to the IRS, penalties and interest continue accruing on the balance.
There are two types of penalties the IRS charges on back taxes: penalty for failure to file and penalty for failure to pay. For failure-to-file your tax return, the penalty charged is 0.5%. For failure-to-pay your tax bill, the penalty charged is 5%.
If there are both failure-to-file and failure-to-pay penalties, the total penalty charged is 5%. Penalties are charged every month until you file your return or pay back your total back taxes.
These penalties keep on accruing even after you enter an Installment Agreement. The more you pay and the sooner you pay your back taxes will reduce the amount in penalties. Keep penalties in mind when determining the amount you pay in each installment. If you can afford to pay more initially, it will save you more on penalties and interest.
Along with penalties, any back tax amount also accrues interest. Even if you have entered an Installment Agreement, interest will continue to accrue on any back taxes amount that remains to be paid. The IRS charges interest at the federal short-term rate plus 3%. It is charged quarterly and compounds daily.
It is because of penalties and interest that the back taxes keep on increasing over time. The sooner you pay, the less amount in back taxes you will need to pay.
Tax Liens
In the case of a Streamlined Installment Agreement, the IRS usually does not place a lien. However, if the revenue officer sees fit, the IRS may place a lien, but that is rare.
What If I Don’t Qualify for a Streamlined Installment Agreement?
Suppose you don’t qualify for a Streamlined Installment Agreement. In that case, there are other Installment Agreement payment plans that you can explore, such as a Guaranteed Installment Agreement and a Non-Streamlined Installment Agreement.
If you cannot pay your full back taxes, you have options such as an Offer in Compromise and a Partial Payment Installment Agreement. If you cannot pay any of your back taxes, you may try for the Currently Not Collectible status where the IRS stops all collection actions and delays payment until your financial condition improves,
Whatever amount you owe in back taxes, a resolution can be achieved. If you owe less, the procedure is quick and simple, like in a Streamlined Installment Agreement. IRS agreements like these are processed quickly since the IRS doesn’t ask for a Collection Information Statement to process Streamlined Installment Agreements applications.
Hiring Help for Back Tax Resolution
Most taxpayers are unfamiliar with IRS rules regarding back taxes resolution. They may need help choosing the right resolution plan, applying for it, and entering into an agreement with the IRS.
If your back taxes case is straightforward, you may approach the IRS by yourself. However, if you need to negotiate with the IRS, have other obligations, need back tax reduction, challenge the IRS claims, and so forth, it is best to hire a professional to handle it. A tax attorney or a tax resolution service can provide you with a more beneficial resolution where you can come out of back taxes more comfortably and quickly.
Even the most difficult cases of back taxes can be resolved with the right help. Before you hire a service, do your research, and get to know the basics of back tax resolution. It will help you immensely in getting yourself the right tax help. If you are confident in handling it yourself, you can go through the qualifying guidelines for each payment plan and apply for the appropriate payment plan using which you can comfortably resolve your back taxes.
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Our goal is to make it easier for you to explore your options, but the decision is ultimately yours.
Personal Loans Advertiser Disclosure
The personal loan offers you see on Solvable are from companies or affiliates that may compensate us. This compensation may impact where offers appear on the site, including their order, prominence, or whether a lender is featured. Solvable does not include every personal loan provider or all available offers in the marketplace.
Loan approval and terms are determined solely by the lender. You should carefully review each provider’s terms and conditions to find the option that best fits your financial situation. We make reasonable efforts to keep information up to date, but rates, fees, and terms are not guaranteed and may change at the discretion of each provider. There is no guarantee you will be approved for credit or that you will qualify for the advertised rates or terms.
Be sure to:
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Ask about origination fees, which can typically be around 1%
Understand all costs, repayment terms, and requirements
Know that some lenders may require an existing account or specific credit profile for approval
Loan amounts typically range from $1,000 to $35,000, but the amount you qualify for, and the terms offered, will depend on your state, credit history, financial situation, and the lender’s underwriting criteria.
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Credit card approval is determined by the individual issuer. We recommend reviewing each provider’s terms and conditions to ensure the card fits your financial needs.
We strive to provide accurate information, but rates, fees, and terms are not guaranteed and may change at any time at the discretion of the issuer. Approval is not guaranteed, and advertised rates or rewards may not be available to all applicants.
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Business loans are intended strictly for commercial purposes. Any funds or assets obtained through these loans must be used for business-related activities—not for personal, family, or household use.
Most business funding partners in our network do not require collateral, but depending on your needs and the lender’s underwriting criteria, you may be offered other financial products. Traditional bank and SBA loans often require collateral and have more extensive approval processes.
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There is no one-size-fits-all business loan solution
Offers and terms will vary depending on your business’s financial profile
Underwriting criteria, approval, and terms are determined solely by each lender
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Not all products are available in all states or for all types of businesses
We encourage you to review each provider’s terms and consult with a financial advisor or tax professional before accepting any loan offer.
Student Loan Refinancing Advertiser Disclosure
Student loan refinancing offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact where and how offers appear on our site, including the order in which they appear or whether a lender is featured. Solvable does not include all student loan companies or all available refinancing options in the marketplace.
Pursuant to agreements with our partners and affiliates, Solvable may receive updates about the status of your application, including—when available—loan amounts, application status, or final decisions. Each partner’s use of your information is governed by their own privacy policy, which we encourage you to review directly.
Refinancing may help reduce your monthly payments or interest rate, but potential savings will vary depending on the interest rate, balance, and remaining repayment term of your existing loans. In some cases, refinancing may result in a longer repayment term and higher total repayment over the life of the loan—even if monthly payments are lower.
Please keep in mind:
Variable rates may fluctuate over time based on market indices like SOFR, Prime, or another benchmark rate, and may vary based on borrower qualifications and whether a co-signer is used.
Fixed interest rates may also depend on term length, credit profile, or presence of a co-signer.
All terms, rates, and product availability are subject to change at the lender’s discretion and may not be available in all states or for all types of loans.
Due to federal lending regulations, lenders are required to provide potential borrowers with certain disclosures, including an Application Disclosure and an Approval Disclosure, during the application process. Solvable is not a lender or creditor and does not originate or fund loans, nor can we alter or offer credit terms. Only the lender you apply with can provide specific loan details and required disclosures.
Please Note:
Certain federal and private loans may not be eligible for consolidation or refinancing.
Some refinancing options may eliminate borrower benefits (e.g., grace periods, income-driven repayment plans, or federal loan forgiveness eligibility).
Loans in default typically cannot be refinanced until you complete a qualifying repayment program.
Be wary of providers requesting upfront fees for student loan services.
Other financial options—like personal loans, debt relief, or consolidation—may also be worth exploring. Consult with a licensed financial or tax professional to determine what’s best for your situation.
Home Insurance Advertiser Disclosure
Home insurance offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact how and where offers appear on our site, including whether a company is featured or the order in which it is listed. Solvable does not include all home insurance providers or all offers available in the marketplace.
Each provider sets its own underwriting criteria, and coverage availability may vary based on the age, condition, location, and value of the home. Policy terms, limits, exclusions, and pricing are determined by the insurer and may change at any time.
Solvable is not a licensed insurance agency and does not issue policies or offer insurance advice. We recommend that users:
Compare quotes from multiple home insurance providers
Review coverage options, exclusions, and deductibles carefully
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Speak with a licensed insurance agent if you have questions about your specific needs
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Home service offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may affect how and where offers appear on our site, including their placement, order, or whether a provider is featured. Solvable does not include all home service companies or all available options in the marketplace.
Services may include HVAC repair, plumbing, electrical work, home cleaning, appliance maintenance, and other residential needs. Providers set their own pricing, availability, and service standards.
Solvable does not provide home services directly and does not guarantee the quality or reliability of any third-party service. We recommend that consumers:
Compare multiple providers and read recent customer reviews
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Confirm all details directly with the provider before scheduling any service
Important Notice About Solvable’s Role
Solvable is an online lead generation platform that allows consumers to compare rates, terms, and offers from a network of lenders and service providers. We do not offer, extend, or fund any loans. Instead, we connect users with lenders who may be able to help based on the information submitted through our forms.
Submitting an inquiry on Solvable is not a loan application. To move forward, you must speak directly with the lender, review their terms, and complete any application materials they require. Lenders in our network may not offer the lowest available rates, so we encourage you to compare quotes from multiple sources—including banks, credit unions, and other financial institutions—to ensure you’re getting the best deal.
Solvable does not guarantee loan approval, interest rates, or potential savings. Any estimated savings or quotes are for informational purposes only and may not reflect your actual terms. Final rates, loan amounts, and eligibility are determined solely by the lender based on their underwriting criteria, which Solvable does not control or have access to.
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