What Are The Eligibility Requirements For A Debt Forgiveness Program?
How Can I Get My Taxes Forgiven?
What Is Tax Forgiveness?
How A Certified Specialist Can Help
How To Qualify for Tax Forgiveness
What Are Some Of The IRS Debt Forgiveness Programs For Tax Relief?
What Forms do I Need to File to Apply for Tax Forgiveness?

How Do You Qualify For The IRS Tax Forgiveness Program?

Most common tax issues mentioned in the fresh start initiative include overstated or understated income on tax forms or a failure to take all deductions into account. All of these factors can result in federal tax liens, levies on your assets, and IRS debt. If you’ve made a significant mistake on your tax filing, you run the risk of getting a visit from the treasury inspector general. 

Tax help can help reduce your tax liability or tax burden. In exceptional cases, certain rules prevent the IRS from putting wage garnishments on a person’s bank account. Keep in mind that levies never come without notice, and if you receive a letter, you should reach out to one of our tax pros immediately. Qualifications may differ depending on the location of the IRS office, and our employees can help you with the navigation of IRS’ notices.

This article or other articles on our site, will give you a basic overview and instructions on how to file, and qualify for the fresh start initiative.

The Painful Truth

In short, in the standard case of taxes owed, you will have to pay taxes through credit, or debit card, even if you get debt forgiveness. If you have significant debt with the IRS, there are different ways to funnel your liabilities back to the IRS. In addition, a tax professional might be able to provide services to you get into the IRS debt forgiveness program to get a fresh start.

Key Takeaways:

  • Anyone can be eligible to find tax relief with the IRS debt forgiveness program, no matter how long or how much you owe for your bill, but not everyone 

  • First of all, the IRS Fresh Start Program allows for tax forgiveness credits against your earned money to help reduce the overall amount you need to pay yearly.

  • Secondly, some forms of relief on debt include installment agreements, innocent spouse relief, offer in compromise, and currently not-collectible status.

What are the eligibility requirements for a debt forgiveness program?

In addition, eligibility for the debt relief program through an IRS debt forgiveness program is considered based on your total income and expenses. Debt forgiveness is only possible when the IRS is causing taxpayers financial hardship.

Moreover, allowances are the withholdings that you claim on your W-4 that can reduce the amount removed from your paycheck every week, while exemptions are a specific type of deduction you can claim on your returns that balance your taxable income with the amount you withhold from your paycheck each pay period.

The tax professionals at Ideal Tax Solution are here to help you navigate the complicated, red-tape-filled, and overwhelming process of getting tax debt forgiveness, and provide details or information where necessary. Our specialists are here to help you solve your tax problems by getting tax debt lowered through the IRS debt forgiveness program and filing all your tax returns once and for all.

How Can I Get My Debt Forgiven?

People usually ask: how can I get my liabilities forgiven? When you’re working your way out from underneath a pile of back tax debt, it can feel like there’s no light at the end of the tunnel. However, for individuals and business owners there are ways out. To elaborate, as a result of the pandemic, there are more family businesses filing for bankruptcy because of significant debt repayment issues. In hindsight, the government is not allowed to cause financial hardship because of repayment, and many of these businesses could have gotten compensation during the Covid-19 pandemic. Sometimes, people even use a tax withholding estimator and never check the amounts afterward. The moral of the story: if there is no application/updates about your situation, there is no ability to issue any changes in the amount of money you can owe to the IRS.

The truth is, there is help there, and it’s coming from the IRS. However, don’t expect to get the entire amount of your debt waived. debt with the IRS is still official debt, but the IRS will try to assist you in order to claim your IRS tax debt, either through lump-sum payments or monthly payments.

A common misconception about the IRS tax relief program

Unfortunately, this is the last place where many people experiencing tax debt and its impacts on their lives think they’ll get the help they deserve.

However, the IRS is more than willing to work with you no matter how old your debt is. IRS tax debt forgiveness is more viable than people think, and a simple lump-sum payment combined with an installment agreement can already solve a significant part of your problems.

So, what is getting the IRS's forgiveness about?

If you’re reading this article, then you’re here to find out what tax forgiveness is and if you can get IRS forgiveness on your liabilities. If that is the case, we have both good and bad news.

The “bad” news is that there isn’t one particular debt relief program. However, there is good news in the fact that the IRS offers several debt forgiveness programs designed to help you genuinely achieve tax forgiveness.

What we'll discuss

We’ll talk about several of the programs in greater detail below, but first, you want to be sure to understand that tax debt forgiveness isn’t a one size fits all arrangement. You have to invest the time to figure out which debt forgiveness scheme works best for you and your financial situation.


You might be looking at your tax status thinking: what am I getting myself into. More than often, individual taxpayers, employers, or just a business can get behind on different types of payments, including tax collection. Depending on the state you live in and the local laws applicable, you could be racking up penalties and fees.

Fees could include interest, which is based on the interest rate of the U.S. Treasury

Eligibility requirements sound very strict, but it all boils down to one thing: The IRS is not allowed to cause financial hardship. So whether you run a business, or you’re in self-employment, become a business owner, or are an individual taxpayer, you might be eligible if you feel like you cannot provide for your family. In severe cases of economic hardship, you might even be able to request an OIC.

Getting tax forgiveness helps you get organized with your taxes. For example, if you’re behind on taxes, you could hire CPAs on a freelance basis to get you back on track. In addition, as soon as you came to a solution, you will stop incurring fees on your tax return. CPAs always have a certification for their skills and exercise power of attorney to file a proposal. Once you have your finances in order, it will also get easier to increase your credit score, reduce credit amounts, and file for deductions and exemptions on your tax returns.

While the federal government does have options for tax assistance, they are not someone you should look for to give you information about local state tax laws, or make it too easy for you to claim a refund. Your finances are part of their income, and while they might share some tax tips, a tax professional offers a bigger chance of getting deductions and exemptions on your return/filing.

How a certified specialist can help

A certified specialist at Ideal Tax can help you sort through all of the debt forgiveness options best suited to your situation to help you solve your tax problems once and for all. A certified CPA can help prevent tax penalty for late filing. In addition, they’ll be able to more effectively get your refund, keep your tax record file up-to-date, and update your tax details. If you’re thinking: I don’t want to update my information, you’re not the only one. Businesses and individual taxpayers often let CPAs exercise the power of attorney to change statements, back taxes, and tax details. 

Want to know more about back taxes, take a look at our dedicated article on back taxes!

Moreover, late filings can cause problems with other deductions liked itemized deductions. These include amounts you paid for state income or sales taxes, real estate taxes, and more. You are not only incurring debt, but you’re also missing out on regular deductions from your tax bill.  

Our team offers a free first consultation to create proper guidance and will help you find the optimal solution to your tax problem. A tax consultant can give a proper instructions overview, or manage everything for your tax return to reach the best possible resolution. In most cases, an employee will request a lump sum payment to the IRS and the client can then repay the remaining amount in installments.

What are some of the IRS debt forgiveness programs for tax debt relief?

Several different tax debt relief options are available to taxpayers, and taxpayers’ eligibility for each debt forgiveness program is based on the circumstances surrounding their unpaid debt. Here are a few forgiveness and relief options recommended by our tax experts.

Installment Agreement Payment Plan

An installment agreement makes it possible for you to pay down your monthly tax if you cannot pay the total amount. However, the most common repayment period is a payment plan over 72 months, and this option is only available if you need to pay back more than $50,000 in combined debt, interest, and penalties. An installment agreement also stops your tax bill from incurring additional fees and penalties. Optionally, you might qualify for the IRS penalty waiver under the forgiveness plan. When you want to claim a refund and a request for penalty abatement, you will have to fill in form 843.

Offer In Compromise

The offer in compromise (OIC) is a settlement option that qualifies you to pay far less than the amount you owe to the IRS. It directly lowers your tax debt. The offer in compromise is by far the most popular solution for anyone who is in debt with the IRS. However, it is also the least common of all programs under the fresh start program. An offer in compromise occurs only in severe cases.

Currently Not Collectible

Currently Not Collectible is a relief program that is designed to function as a clean slate program for taxpayers who can prove that they cannot pay back their taxes.

Taxpayers qualifying for the IRS fresh start program is not automatic; just because you have met the requirements doesn’t mean you’ll be approved for IRS debt forgiveness.

do I qualify for IRS forgiveness

How To Qualify for the new start with the IRS?

“How to qualify for tax forgiveness?” is a question that a qualified tax advisor at Ideal Tax Solution often hears from their clients.

Unfortunately, it’s a question that doesn’t necessarily have one easy answer, which is why we felt it was necessary to put together this ultimate guide to tax forgiveness.

The intent of your problems matter when applying for Tax Forgiveness

The truth is that there are many ways you can find yourself in a bad spot with the Internal Revenue Service, and the way that you get into trouble with your tax returns directly impacts how the IRS determines the level of forgiveness you’re eligible for.

What forms do I need to file to apply?

Knowing which tax documents you have to fill out and send to the IRS to apply for a tax debt forgiveness program can be just as confusing as knowing if you’re going to get it.

With all of the letters and numbers flying around everywhere, you probably don’t know what all the form numbers and letters are for. To help you qualify for the IRS debt forgiveness program, we can give you an overview of your situation and give clear instructions for qualifying for an offer from the IRS to relieve part of your debt under the fresh start initiative.

Also, you should be ready to supply any necessary documentation to the IRS, like your employer ID number, phone number, name, tax payment systems, withholding certificate, transcript, identity protection pin (or IP pin), your social security number, and taxpayer identification number (TIN) from the United States government. 

If you speak different languages than English might be wise to consult our tax professionals, they might be able to supply you with the content in your native language. You can call us at 1(888)720-0442

In a nutshell

Owing to the IRS for delinquent liabilities is never a fun experience for anyone, but that doesn’t mean that you have to stress and worry. For a taxpayer to get a clean slate, there are many different IRS forgiveness and assistance programs out there to help you get out of the overwhelming tax debt you’re facing.

Understand, though, that the last thing you want to do is avoid the IRS because they can garnish your wages, withhold your future tax refunds, and more. You can always contact us if you require assistance filing your income tax return with the federal government. Our tax pros are aware of the local laws of your state and can provide the best assistance for your refund.

If you require more information, you can call us to find out how we can take the stress and worry away and settle your tax debt relief today! Schedule your call today to see whether you qualify for the IRS’s tax program.


1. What is the IRS Forgiveness Program?
Because of financial hardship, certain taxpayers may qualify for tax debt relief under the IRS Forgiveness Program. This IRS program, which is available to taxpayers who cannot pay their taxes because of financial difficulty, is administered by the Internal Revenue Service (IRS). Those who have fallen on hard times and are unable to pay their taxes may qualify for relief under the IRS Forgiveness Program.

2. Who is eligible for the program?

There are several eligibility requirements for this program. You must be a U.S. citizen or legal permanent resident to start. In addition, you need to be 18 years old to participate. You also need a GED or high school credential. Fourth, you must pass a check of your criminal history. The ability to pass a drug test is also required.

3. To what extent does the IRS forgive tax?

Since the response depends on several factors, such as the nature of the offense, the offender’s relationship to the victim, the sincerity of the apology, and the victim’s capacity for forgiveness, this question cannot be answered categorically. In certain situations, forgiveness is easy and immediate, while in others, it is a long and arduous journey. The final discretion to forgive rests with the offender.

4. What are the conditions for forgiveness?

The conditions for forgiveness vary with the nature of the offense and the relationships of the parties involved. There must be an acknowledgment of guilt, an expression of sorrow, and a commitment to making amends before anybody can expect forgiveness. Let go of your anger, resentment, and desire for revenge to forgive. Forgiveness is not always possible simply by deciding to do so.

5. What is the process for applying for forgiveness?

Talking to the entity you owe money to is the first step in asking for forgiveness. To get a loan modification, you’ll need to provide proof of your current financial situation and the reasons you can’t afford to make the loan payments. Once you have submitted your paperwork, the organization will review it and make a decision on your debt forgiveness request. If they do decide to cancel your debt, they will write you a letter explaining their decision and the amount you’ve been forgiven.

6. How long does it take to get a decision?

The answer is dependent on a number of factors, such as the nature of the case, the jurisdiction in which it is filed, the number of litigants, and the volume of evidence. However, it might take anywhere from a few months to a few years for a final judgement to be made in a civil or criminal proceeding.

7. What are the tax consequences of forgiveness?

Significant tax implications associated with forgiveness are possible. The amount of a forgiven debt is considered taxable income to the borrower. The debt forgiven amount will be subject to taxation by the borrower. Since the forgiven amount is essentially a gift from the lender to the borrower, it may be liable to gift taxes.

8. Can I appeal the decision if I am not approved for forgiveness?

You have the right to request a reconsideration of any decision that denies you forgiveness, although it depends on your return status. The first step is getting in touch with your loan servicer to discuss your choices. Alternatively, you may submit a complaint with the Consumer Financial Protection Bureau if you’re still unhappy with the outcome.

We provide professional guidance to people whose lives have been affected by tax problems. To evaluate your specific tax issue and determine if you qualify for tax relief, please contact us for a free consultation. We are COVID-19 prepared, we will work with you over the phone and via e-mail. The content of this post does not replace the advice of a licensed tax professional. Consult a qualified tax professional for questions specific to your circumstances.

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00:44 25 May 22
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