IRS Forgiveness Program: Tax Debt Relief - 2023 Updates
Last updated: October 20th, 2023
Table of Contents
What is the IRS Forgiveness Program?
The IRS forgiveness program helps relieve taxpayers who owe debt to the IRS due to financial hardship.
A Common Misconception About The IRS Tax Relief Program
Due to the financial stress that back taxes can cause for certain taxpayers, the IRS is often the last place where many people experiencing the impact of tax debt 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.
Being in business for more than 13 years, Ideal Tax provides professional guidance to people whose lives have been affected by tax issues. Our team of licensed enrolled agents, accountants, and tax attorneys can help evaluate your tax issue.
Need Assistance with the IRS Fresh Start Program? Call (877) 357-2002
Who Might Benefit From An IRS Tax Debt Relief Program?
Taxpayers who have made a mistake on their tax return, such as understating or overstating income on tax forms, may benefit from an IRS tax debt relief program if they cannot afford to pay the tax liabilities owed to the IRS.
All of these tax filing mistakes can result in federal tax liens, levies on your assets, and IRS debt, which can also increase your risk of being audited, but by utilizing expert tax help to apply for the IRS Forgiveness Program, you can achieve a reduced tax liability or tax burden.
- Taxpayers who cannot afford to pay their tax liability without causing significant financial hardship may qualify for tax debt relief through the IRS Debt Forgiveness Program.
- The IRS Forgiveness Program allows for tax forgiveness credits against your earned money to help reduce the overall amount you need to pay yearly.
- The main forms of tax debt relief through the IRS Debt Forgiveness program include installment agreements, innocent spouse relief, offers in compromise, and currently not-collectible status.
What are the eligibility requirements for a debt forgiveness program?
To be considered eligible for the IRS Tax Forgiveness Program, taxpayers must:
1. No history of late payments to the IRS.
2. Prove that paying your tax liability would cause financial hardship.
3. Being up to date with the current tax year.
The tax professionals at Ideal Tax are here to help you navigate the complicated, red-tape-filled, and overwhelming process of getting tax debt forgiveness, and provide facts or information where necessary. Our specialists are here to help you get your tax debt lowered through the IRS debt forgiveness program and file all your tax returns once and for all.
How A Certified Specialist Can Help
Certified specialists at Ideal Tax, such as tax attorneys or CPAs, can help you sort through the debt forgiveness options best suited to your situation in order to help you solve your tax problems once and for all. For example, businesses and individuals can hire a certified CPA or appoint them as their power of attorney to help prevent tax penalties for late filing, optimize their tax refund through tax credits and deductions, and keep their tax account up-to-date.
While the United States government offers options for tax assistance, it is not an entity you should expect to give you information about local and state tax laws or make it too easy for you to claim a tax 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.
What Are Some Of The IRS Debt Forgiveness Programs For Tax Debt Relief?
Several different tax debt relief options are available to taxpayers, but their 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 tax debt in monthly payments if you cannot afford to pay the total amount, in addition to preventing your tax bill from incurring additional fees and penalties.
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.
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, therefore directly lowering your tax debt.
However, OICs are the least common of all programs under the Fresh Start program and are only approved in severe cases, so it is beneficial to hire someone with a tax certification and experience in negotiating the best offer amount to help clients lower tax expenses for their family businesses.
Currently Not Collectible Status
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.
If approved, the taxpayer’s accounts will be flagged with non-collectible status and the IRS will not be able to pursue collection or levy their assets or property.
IRS Penalty Abatement
Optionally, you might qualify for the IRS penalty waiver under the forgiveness plan. When you want to claim a refund and request penalty abatement, you will have to fill in form 843.
There are many different IRS forgiveness and IRS Fresh Start assistance programs to help you get out of the overwhelming tax issues you’re facing, but you must take action to prevent the IRS from garnishing your wages, withholding your future tax refunds, and more.
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 services, please contact us for a free consultation. 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.