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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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A statute of limitations exists on back taxes, after which the IRS cannot recover back taxes.
If you’re considering exercising a statute of limitations, you probably need back taxes advice.
It’s wise to face up to your responsibility for back taxes.
If you have a back taxes that is past due, the IRS will attempt to collect on the money that you owe. Whatever your reasons for being past-due, the government has several options for recovery. They can impose a levy or lien on any income you receive or seize property you own.
By law, the IRS has a finite period of time in which to collect the money, a time period known as the statute of limitations on back taxes. This period is generally 10 years, but the statute of limitations can be extended under certain circumstances.
The Statute of Limitations on Tax Assessment
The 10-year rule for the collection of taxes can be misleading, as that time doesn’t start until the IRS assesses your tax liability and sends you a bill. If you fail to file a tax return, the IRS can file a substitute return and create a deficiency assessment, but the agency may not do so for up to three years after the due date.
The statute of limitations can be suspended by certain actions that you, the taxpayer, takes. The suspension period can extend from a few months to several years depending on your case. Any period of suspension will be added onto the 10-year statute of limitations. Actions that lead to suspension of collection proceedings include the following:
Requesting an installment agreement will cause the statute of limitations to be suspended from the date the IRS receives the request to the time the agency makes a decision. If the request is denied, an additional 30 days of suspension will allow you to appeal the decision.
Submitting an offer in compromise results in suspension for the same period as an installment agreement request.
Asking for a collection due process hearing within 30 days of receiving a final notice of intent to levy will suspend the statute for the duration of the pending hearing.
Requesting innocent spouse relief suspends the statute of limitations until the final decision of the tax court plus an additional 60 days occurs.
Living outside the United States for six consecutive months or more leads to suspension for the duration of your absence. This suspension will continue for six months after your return to the United States.
Serving in the military will get the action suspended for the duration of your service plus 270 days. If your service was in a combat zone, an extra 180 days will be added.
Filing for a taxpayer assistance order can be done when you have received a notice of a tax levy or lien that will cause you extreme hardship. The statute of limitations will be suspended while your case is being reviewed.
Filing for bankruptcy results in the court issuing an automatic suspension for the tax periods involved in your bankruptcy plus an additional six months. In this case, you want to understand when the suspension ends.
The IRS will rarely sue you for the collection of taxes due, but in this event, the statute of limitations would be suspended during this action. This suspension would also be the case if you were in litigation with the IRS.
Can You Voluntarily Extend the Statute of Limitations?
You can voluntarily agree to extend the 10-year period of the statute of limitations under certain circumstances. An extension would usually be for five years.
If you are struggling to pay your back taxes, but you are expecting to receive assets after the statute of limitations expiration date, you can agree to an extension as part of a tax resolution.
The IRS may approve a partial payment agreement if you agree to extend the date to enable collection of your back taxes.
In these cases, the statute of limitations will end 90 days after the expiration of the extension.
What Are the Penalties for Late Payment of Taxes?
The IRS can impose penalties and interest fees if you are late filing your tax return, make a mistake, or if you don’t pay the full amount of tax due. What fees you incur will depend on how late you make payment or the severity of the errors, but they could include the following:
If you file on time but don’t pay the total, you will be charged one-half of 1 percent of the tax for each month you owe.
If you file late, you will pay 5 percent of the tax owed for each month overdue.
Combined penalties are applied if you file late and pay late.
The federal short-term rate of compound interest will be charged, plus 3 percent.
Filing a frivolous tax return incurs a penalty of $5,000.
Mistakes will result in a fee of 20 percent of the underpayment.
Missing, False, or Fraudulent Tax Returns
In cases where the IRS can determine that you have willfully failed to file your tax return, or you have done so fraudulently, no statute of limitations will be applied to the collection of your back taxes. Furthermore, if the IRS chooses to prosecute you, you could face severe penalties and possible time in jail.
In nearly all cases, it is far better to face up to back taxes and contact the IRS voluntarily to find out if you can come to an arrangement to settle the back taxes that you owe.
If you are worried about getting into back taxes with the IRS, or you’re already in the situation where the IRS is trying to collect back taxes from you, you should consider inquiring about professional back tax assistance advice from Solvable. We provide assistance by matching your needs with trusted back tax assistance providers that can help you with your back taxes concerns. Learn how our resources and knowledge about back tax assistance could help you get out of back taxes faster.
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.
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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.
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Article pages
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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.
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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
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You should always verify the final terms and disclosures on the issuer’s official site before applying
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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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