Can I lower the amount I pay for back taxes

It sounds like you have what is referred to by the IRS as a partial payment installment agreement.  This arrangement is available for taxpayers who cannot afford to pay their tax liability within the Collection Statute Expiration Date (CSED).  I can attest that this is legal.  For issues of morality please consult lawyers.com's sister site, KantPayTaxes.com Said another way, the IRS has 10 years to collect from you.  Once that 10 year period has run, the debt drops away and is no longer collectible.  There are a lot of nuances to this, but essentially the IRS looks at how much you owe and divides that by how many months they have left to collect.  If that amount is greater than your ability to pay, then they allow you to enter into a Partial Payment Installment Agreement.  The good news is that you may never pay the full amount to the IRS within the CSED, but the bad news is that they will file a tax lien. If you want to pay them less or no money you have a few options: 1. Currently Not Collectible:  This status is like saying, "I owe you the money, but I cannot afford to pay anything at this time."  Again, the IRS will file a tax lien, but you won't be burdened by a monthly payment and the Statute of Limitations continues to run. 2. Lesser Partial Payment Installment Agreement:  This is the same as what you have now, but with a lower monthly payment.  A lower monthly payment may be obtained by optimizing your Collection Information Statement (Form 433F) to obtain all possible deductions.  For instance, the IRS wlll allow a $60 monthly expense for out of pocket medical expenses ($144 if you are over 65).  If this expense wasn't factored in the first time they determined your ability to pay, you may be able to reduce your monthly payment by $60 or $144.  There are a handful of these issues that can make a big difference in the cumulative. 3. Offer In Compromise.  This is a settlement with the IRS.  You offer them a lump some payable over 1 or 2 years and if accepted your liability is resolved.  There are a lot of considerations with this resolution including your monthly income and expenses as well as you assets and liablities, but it is certainly an option. 4. Bankruptcy.  If your tax debt meets the requrirements of having been due for 3 years, filed for 2 years, and assessed for 180 days, then it may dischargeable through a Chapter 7 bankruptcy or considered Non-Priority Debt under a Chapter 13.  The catch here is that you need to file for bankruptcy and there won't be much benefit for a 2012, 2013, or 2014 tax debt. I hope this information helps.   Best regards, Adam Brewer, Esq.