IRS Debt Forgiveness Program

What Is The IRS Debt Forgiveness Program?

The IRS Debt Forgiveness Program offers multiple tax relief options that provide immediate help for people owing money to the IRS if they qualify.  To determine which you qualify for, let us calculate your savings to see how much tax debt relief you can expect to receive.

Millions of Americans find themselves owing the IRS back taxes – often many years of back taxes. The stress of being in debt to the IRS and unable to pay can be quite overwhelming. There are also some hefty consequences:

• garnished wages
• levied bank accounts
• tax liens on property

Thankfully, there are options to help you eliminate IRS debt. The IRS Debt Forgiveness Program may be the answer to your difficult tax situation.

Qualifications

The IRS ultimately determines whether you qualify for debt forgiveness. However, the agency generally considers taxpayers who meet these criteria: a total tax debt balance of $50,000 or less, and a total income below $100,000 for individuals (or $200,000 for married couples).

Need to talk to a tax relief specialist? Click here to contact us.

The IRS debt forgiveness program offers tools and assistance to help taxpayers find the best way to repay their debts, and it also provides a way for taxpayers to get relief from penalties and eliminate interest charges.

To be eligible in 2024, you must claim extreme financial hardship and have filed all previous tax returns. The program is available only to those who qualify.

This program allows you to consolidate all of your debts into one monthly payment, making it easier to manage. Additionally, tax debt forgiveness can improve your credit score in the long run. So if you are struggling with tax debt, be sure to explore all of your options and get help from the IRS.

Tax Relief Services Include Zero Tax Elimination, Monthly Payment Plans & Offer-In-Compromise

If you cannot pay your taxes in full and don’t know how to begin paying back what you owe, contact us for a free consultation. We will review the current tax debt solutions available to you.

For over 14 years, our team of federally licensed & enrolled agents, tax attorneys, and accountants have all worked toward the common goal of tax resolution services with both the IRS and state tax authorities.

We Help With:

• Tax Levies & Liens
• Wage Garnishment
• Asset Seizure
• Tax Preparation & Extensions
• IRS ‘Fresh Start’ Qualification Assistance
• Offer in Compromise
• Currently Non Collectible Status
• Statute of Limitations Enforcement
• Filing Returns for Unfiled Years
• IRS Audit Defense
• Business & Personal Taxes

Say Goodbye To Tax Debt

If you owe the IRS at least $10,000, then Tax Law Advocates can help you. There are many different options when it comes to debt settlement and repayment plans. Eligibility for each option is determined on a case-by-case basis. Because the IRS judges each case individually and negotiates each case individually, it is critical to work with experienced tax professionals.

Don’t settle for a tax resolution that requires you to pay more than you have to. Let our experienced team help you get the best terms possible.

Eligibility for Offer in Compromise (OIC)

To be eligible for applying for an Offer in Compromise (OIC) with the IRS, individuals must meet certain criteria, including demonstrating financial hardship or doubt as to liability. Here is a clear outline of the eligibility criteria based on the qualifications specified by the IRS:

1. Financial Hardship:
   • Taxpayers may qualify for an Offer in Compromise if they can prove that paying the full tax liability would cause significant financial hardship. This involves providing detailed financial information to the IRS to support the claim of hardship.
2. Doubt as to Liability:
   • Another eligibility criterion for an OIC is doubt as to liability, where taxpayers believe they do not owe the full amount of taxes assessed by the IRS. This could arise from disputes over the accuracy of the tax assessment, errors in calculations, or other factors that cast doubt on the liability amount.
3. Compliance with Tax Obligations:
   • Applicants must be current with all filing and payment requirements to be considered for an Offer in Compromise. This includes filing all required tax returns and making any estimated tax payments for the current year.
4. No Open Bankruptcy Proceedings:
   • Taxpayers who are currently going through bankruptcy proceedings are generally not eligible for an OIC. It’s essential to resolve bankruptcy matters before applying for debt forgiveness through this program.
5. Not an IRS Employee or Involved in an Open Criminal Investigation:
   • Individuals who are current IRS employees or under investigation in a criminal tax case are typically ineligible for an Offer in Compromise.

By meeting these eligibility criteria and providing supporting documentation as required, taxpayers may have the opportunity to negotiate a settlement with the IRS through the Offer in Compromise program, potentially reducing their tax liability and resolving their tax debt burden.

For specific details on eligibility requirements and the application process, contact us today.

Recent News Regarding IRS Tax Forgiveness

In 2023, the IRS provided penalty relief for taxpayers with assessed taxes less than $100,000 for tax years 2020 and 2021. This relief includes the automatic waiver of failure-to-pay penalties and aims to assist individuals facing tax debts from those specific years. Additionally, the IRS has resumed sending collection notices to individuals with tax debts before tax year 2022, marking a restart of collection activities that were paused due to pandemic-related reasons.

For individuals who owe back taxes to the IRS, staying informed about such penalty relief initiatives and collection notice resumptions is essential to understand their options and obligations regarding tax debts and how to eliminate them.

How To Get Help With IRS Debt Programs

Currently Non-Collectible Status

If you cannot pay your taxes, the IRS may place you in Currently Non-Collectible Status. This means that the IRS will not actively try to collect the money you owe from you. However, this does not mean that your debt is forgiven. The interest and penalties will continue to accrue, and the statute of limitations will reset.

If you are in Currently Non-Collectible Status, the IRS may require you to file a financial statement. This statement will show the IRS your current income and expenses. The IRS will use this information to determine if and when they can begin collecting from you again.

Installment Agreements (IRS Payment Plans)

If you owe back taxes, you may be able to pay down your debt with an installment agreement. An installment agreement is a payment plan that allows you to pay your debt over time. This can be a good option if you cannot pay your taxes in full.

The downside of an installment agreement is that it will not stop the accrual of interest and penalties. You will also be required to pay a setup fee. The IRS may also file a Notice of Federal Tax Lien, which can damage your credit score.

It is critical to remain diligent with your payments once your payment plan request is approved. The IRS does not object to revoking installment agreements in cases where taxpayers do not abide by the terms.

Offer in Compromise

Another option is to try to settle your IRS debt for less than you owe through the Offer in Compromise program. An offer in compromise (OIC) can be used if you can’t pay your tax debt. An OIC is an offer by which a taxpayer can pay less than the amount they owe the IRS.

The government will accept an OIC request if one of the following three circumstances applies:

1. There is doubt as to the collectibility of the tax debt.
2. The amount offered represents the most that can be collected from you, given your ability to pay.
3. Collecting the full amount of the tax debt would create a financial hardship for you or your family. 

If your OIC is accepted, you will be expected to pay a non-refundable deposit. The amount of your deposit will depend on the payment method you choose and how much you owe. There are three ways to pay off an offer in compromise:

1. Lump Sum Cash – You pay the entire amount of the offer with one payment.
2. Short-Term Payment Plan – You agree to pay the amount of the offer in five or fewer payments.
3. Deferred Payment Plan – You agree to pay the amount of the offer in more than five payments.

The IRS Offers No Guarantees

IRS debt forgiveness programs are difficult to set up on your own. Between installment agreements, offers in compromise, and other settlement alternatives, taxpayers can get bogged down in a complicated world of confusing concepts and end up being rejected for a debt relief program that a tax professional would have gained approval for. 

Tax Law Advocates has a proven track record of getting IRS debt forgiveness approved and assisting clients to significantly reduce their unpaid balances by using appropriate debt relief strategies. We have the skills and experience to get IRS debt forgiveness proposals accepted quickly and efficiently. Our debt relief proposals are individually designed with your unique situation in mind.

How Much Will The IRS Settle For?

When each case is different, and there’s no guarantee that your debt will be forgiven, doesn’t it make sense to work with someone who’s been there before and navigated the tricky waters of IRS debt relief? If you think that you may be eligible for the IRS Tax Debt Forgiveness program, contact Tax Law Advocates for a consultation.

How To Apply For Offer In Compromise (OIC)

When considering resolving tax debt through the Offer in Compromise (OIC) program, taxpayers face a crucial decision: whether to navigate the complex application process on their own or seek professional assistance from experts like Tax Law Advocates. Here’s a compelling argument for why a taxpayer should choose to contact Tax Law Advocates for OIC assistance instead of applying independently:

Why Choose Tax Law Advocates for Offer in Compromise Assistance?

1. Expertise and Experience
   • Tax Law Advocates brings a wealth of expertise and experience to the table. Their team of professionals understands the intricacies of tax law and has a proven track record of successfully negotiating OICs for clients.
2. Personalized Guidance:
   • By working with Tax Law Advocates, taxpayers benefit from personalized guidance tailored to their specific financial situation. The team can assess individual circumstances, strategize effectively, and provide customized solutions for debt relief.
3. Maximized Chances of Success:
   • Tax Law Advocates possesses insider knowledge of the IRS processes and requirements for OIC approval. By leveraging their expertise, taxpayers can significantly increase their chances of a successful offer acceptance and debt reduction.
4. Thorough Application Preparation:
   • The professionals at Tax Law Advocates handle the entire OIC application process meticulously. From gathering financial documentation to completing forms accurately, they ensure that every detail is in place to support a compelling offer.
5. Negotiation Skills:
   • Negotiating with the IRS requires finesse and skill. Tax Law Advocates’ team is adept at negotiating on behalf of their clients, advocating for the best possible outcome and maximizing the chances of a favorable settlement.
6. Time and Stress Savings:
   • Dealing with tax debt can be stressful and time-consuming. By enlisting the services of Tax Law Advocates, taxpayers can offload the burden of navigating complex tax matters and focus on other priorities while experts handle the OIC process efficiently.
7. Long-Term Financial Freedom:
   • With our OIC assistance, taxpayers can regain control of their finances and establish a solid foundation for future financial stability.

Contacting Tax Law Advocates for Offer in Compromise assistance presents a compelling opportunity for taxpayers to receive expert guidance, increase their chances of OIC approval, and alleviate the complexities and uncertainties associated with resolving tax debt independently. With a dedicated team by their side, taxpayers can embark on a path towards financial freedom with confidence and peace of mind.

References and Resources

IRS Offer in Compromise details at IRS.gov
Taxpayer Advocates – learn more
Currently-Not-Collectible Status

For readers seeking comprehensive information on the IRS Debt Forgiveness Program and related processes, you can download Publication 594: The IRS Collection Process directly from the IRS website.

Download Publication 594: The IRS Collection Process

Publication 594 offers detailed insights into the IRS collection process, including guidance on resolving tax debt, understanding collection actions, and navigating potential options like the Offer in Compromise program. It serves as a valuable resource for individuals looking to enhance their understanding of IRS debt forgiveness procedures.

Feel free to access Publication 594 for in-depth knowledge on managing tax liabilities and exploring pathways to financial relief through the IRS Debt Forgiveness Program.