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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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What is the IRS Partial Payment Program and How It Reduces Back Taxes
The IRS offers back tax reduction plans that help taxpayers and businesses get a reduction in back taxes. Many people erroneously believe that back taxes reduction plans are open for all. The truth is that IRS back tax reduction plans are only for those who cannot afford to pay their full tax debt. If you are experiencing financial hardship, you can consider applying for IRS back taxes reduction programs such as the IRS Partial Payment Installment Agreement (PPIA) or Offer in Compromise (OIC). These plans allow you to pay less than what you owe in back taxes.
The IRS has many programs for resolution of back taxes. Installment Agreements are one of the most popular because most taxpayers can qualify for them. Partial Payment Installment Agreement is an Installment Agreement plan that allows back taxes reduction. Using this plan, taxpayers who are in financial difficulty and cannot pay their entire back taxes can pay less and permanently resolve their back taxes. Under the Partial Payment Installment Agreement, you can pay the reduced amount in installments.
How to Qualify for the Partial Payment Installment Agreement Plan?
After you apply for the Partial Payment Installment Agreement, the IRS analyzes your ability to pay to determine how much of your back taxes you can pay. When conducting the financial analysis, they look at your income, property, and assets to judge your paying capacity. Depending upon that, they reduce the back taxes amount to what you can afford.
Along with this major criteria, you also need to file all your past tax returns before you apply for the Partial Payment Installment Agreement program. The IRS rejects applications for PPIA if they find that there are unfiled tax returns.
IRS Partial Payment Plan: Offer in Compromise
An Offer in Compromise is another IRS back taxes reduction plan that allows you to pay less than what you owe in back taxes. Depending upon your financial condition, the IRS reduces your back taxes to what you can afford to pay.
An Offer in Compromise is only for those who are financially strained and cannot pay their full back taxes. Unscrupulous tax services promise back taxes reduction to anybody who would hire their services. Beware of such services when you are looking to hire help for back taxes reduction.
How to Qualify for An Offer in Compromise?
After an Offer in Compromise application reaches the IRS, they conduct a financial analysis of the applicant to determine his/her ability to pay. Just like in Partial Payment Installment Agreement, an Offer In Compromise too, the IRS looks at your income, equity in assets, and expenses to determine your ability to pay. If they find that you cannot pay your back taxes using your income or equity in assets, then they reduce the amount to what you can pay.
If you cannot pay any amount in back taxes, the IRS is likely to put you under the Currently Not Collectible status. In this case, the agency places collection actions on hold and waits for your financial condition to improve so that they can collect the back taxes.
What is a Statute of Limitations?
The IRS can only collect back taxes 10 years from the date of non-payment. This 10-year collection period is called the Statute of Limitations. Usually, if they cannot collect back taxes until the expiry of the Statute of Limitations, they stop the collection and close the case. Therefore, in back taxes collection, the IRS looks at the Statute of Limitations to see if they can hope to collect back taxes before the expiration of the Statute of Limitations. In rare cases, the IRS extends the statutory period for the collection.
Installment Agreements
Taxpayers that cannot qualify for IRS partial payment plans can use an Installment Agreement to resolve their back taxes. The IRS offers a variety of Installment Agreements, namely:
Guaranteed Installment Agreement
Streamlined Installment Agreement
Non-Streamlined Installment Agreement
Partial Payment Installment Agreement
In all these plans, you pay your back taxes amount in installments. The amount to pay in each installment depends upon your paying capacity as ascertained by the IRS. Among the different Installment Agreements, only the Partial Payment Installment Agreement allows back taxes reduction.
If you find that you cannot qualify for the Partial Payment Installment Agreement, you can explore the other Installment Agreements and resolve your back taxes by paying your full back taxes in installments. Again, the amount you pay in installments depends upon your paying capacity.
Penalties and Interest on Back Taxes
Before applying for any IRS back taxes resolution plan, it is important to know about the penalties and interest the IRS charges on back taxes.
From the day of non-payment of taxes owed, the IRS begins to charge penalties. For non-filing of a tax return, the penalty charged is 5%. For non-payment of the taxes owed, the penalty charged is 0.5%. Along with penalties, the IRS charges interest on back taxes as well.
The penalty is charged each month, and interest is compounded daily. Every month that the back taxes remains unpaid, the total amount owed keeps growing. If left unpaid for months or years, the amount grows substantially, making it even more difficult for the taxpayer to pay it.
How Hired Help Can Achieve Back Taxes Reduction for You
Hiring a tax attorney or a back taxes resolution company can help immensely in getting the most beneficial resolution. A professional looks at many ways to save you from paying more to the IRS, such as penalty abatement, where the IRS reduces or waives the penalty charged on back taxes.
A tax attorney can negotiate the terms and conditions of the agreement to make it more favorable for you. Especially in back taxes reduction cases, it is best to hire a qualified and honest tax attorney or a back taxes resolution service that can get you the most back taxes reduction while taking care of IRS notices and collection actions. It will make your journey to resolution smoother and get you the most benefits possible.
Solvable is a for-profit company that connects consumers with third-party providers across a wide range of financial and home service categories, including tax resolution, personal loans, credit cards, student loan refinancing, home insurance, and home services. Our platform is free for consumers to use, and we may receive compensation from partners when users engage with their products or services.
We publish a mix of editorial content and partner-supported features. Some articles may include sponsored offers or affiliate links, which are clearly labeled. While compensation may influence which products are featured or where they appear, it does not affect our editorial opinions or reviews. We do not accept payment in exchange for favorable ratings or endorsements. Reviews and assessments reflect our own independent views and may not cover every option available.
How We Make Money
Solvable is compensated by some of the companies featured on our website. Most often, we receive fees when a user clicks on a link, fills out a form, applies for, or obtains a product or service from one of our partners. These may include providers of financial services (like loans and credit cards), tax assistance, home insurance, and home services.
We may also earn fees for:
Capturing consumer inquiries and stories
Writing articles that are relevant to a partner’s audience or offerings
Displaying advertisements
Sponsoring specific content, tools, or sections of our website
This compensation may affect where and how certain products or services appear on our site, including:
Article pages
Comparison tables
Matching results
The order or prominence of listings
Solvable has not reviewed or written about every product or service available in the marketplace. We do our best to provide helpful information, but our recommendations are based on available data and editorial judgment—not comprehensive analysis.
In addition, we may be compensated in the following ways:
Referrals to consumers who use online forms or tools that may connect them with experts;
Marketing services related to tax resolution, tax preparation, tax audit help, and general tax assistance;.
Referrals to providers in categories such as financial services, tax support, home insurance, and home services.
We encourage you to shop around, compare services and costs, and perform your own due diligence before making a decision—especially since individual experiences with providers can vary over time.
How We Share Information
When you submit a form or request on Solvable, the information you provide may be shared with one or more of our advertising partners. These partners may contact you directly with offers related to the product or service you inquired about, and they may also use your information for their own marketing, outreach, or business purposes.
In many cases, the partners you are matched with may retain ownership of the information you provide and may use it in accordance with their own privacy policies and practices. Once your information is shared, Solvable does not control how it is used.
We strongly encourage you to review the privacy policies, terms of service, and marketing practices of any provider you engage with to understand how your data may be used or stored.
For more information about how Solvable collects and handles your information, please refer to our Privacy Policy.
Free Solvable Services
The offers you’re matched with through Solvable are from companies, attorneys, or service providers with whom we may have a paid relationship. Based on our initial screening, we believe these providers may be a good fit for consumers, but we do not make guarantees about their services or results. We do not recommend providers solely because they pay us. However, we may prioritize or display offers from partners with whom we have an existing business relationship.
We encourage all users to:
Shop around and compare costs, services, and reviews
Conduct independent research before making a decision
Ask questions directly to the provider before signing any agreements
Solvable is not a law firm and does not provide legal advice. If you’re working with an attorney or financial professional, we encourage you to speak with them about your specific situation, as they will be most familiar with your needs and the laws in your state.
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:
Review actual loan terms directly with the lender
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.
Credit Card Advertiser Disclosure
Some of the credit card offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether they’re labeled as “featured.” Solvable does not include all credit card companies or offers available in the marketplace.
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.
Please keep in mind:
Information is provided by the card issuer and may not reflect real-time updates
Any opinions, reviews, or recommendations are those of the author and/or Solvable
They have not been reviewed or endorsed by any credit card issuer
You should always verify the final terms and disclosures on the issuer’s official site before applying
When you click “Apply Now,” you’ll be taken to the credit card provider’s website where you can review the full terms and submit your application.
Business Loans Advertiser Disclosure
Some of the business loan offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether a lender is featured. Solvable does not include all business loan providers or offers available in the marketplace.
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.
It’s important to understand:
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
Rates, fees, and availability are subject to change and are not guaranteed
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
Confirm all terms directly with the insurer
Speak with a licensed insurance agent if you have questions about your specific needs
Home Services Advertiser Disclosure
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
Ask about service guarantees, pricing structures, and insurance or licensing where applicable
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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