IRS Forgiveness Program | Tax Debt Relief Programs (2024)

IRS Forgiveness Program – Tax Debt Relief In 2024nate@taxlawadvocates.com2024-04-24T01:23:22-12:00

IRS Forgiveness Program Qualifications – 2024

IRS Forgiveness Programs provide immediate tax debt relief for people who owe money to the IRS and are unable to pay back their tax debt. Multiple tax relief programs are available, each with different qualifications and benefits. To determine which IRS Forgiveness Program you qualify for, contact an experienced tax debt relief company or 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 get out from under the weight of IRS debt. The IRS Debt Forgiveness Program may be the answer to your difficult tax situation.

What Is The Tax Debt Forgiveness Program?

The IRS debt forgiveness program is a way for taxpayers who owe money to the IRS to repay their debts in a more manageable way. The 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 interest charges.

The IRS offers a tax debt forgiveness program for taxpayers who meet their qualification requirements in 2024. To be eligible, 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.

Know Your Options

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.

For over 13 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
  • 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

Eligibility & Requirements

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.

Recent Changes To IRS Tax Forgiveness

The IRS has recently 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.

How To Get Rid Of IRS Debt

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 circ*mstances 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.

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.

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.

References and Resources

IRS Offer in Compromise details at IRS.gov
Taxpayer Advocates – learn more

IRS Forgiveness Program | Tax Debt Relief Programs (2024)

FAQs

Is there a legitimate IRS forgiveness program? ›

The IRS debt forgiveness program is a way for taxpayers who owe money to the IRS to repay their debts in a more manageable way. The 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 interest charges.

Is the tax debt relief program legitimate? ›

Tax debt relief is a way the government helps you when you can't afford to pay your tax bill. This comes in the form of a payment plan or a settlement in which the IRS agrees to settle your tax debt for less than the full amount you owe.

Do tax relief programs really work? ›

Tax relief companies say they can work with the IRS and state tax agencies to reduce or eliminate your tax debt. But the Federal Trade Commission and other government agencies warn that some of these businesses make bogus claims, charge high fees and fail to deliver on their promises.

Can you ask IRS to forgive tax debt? ›

When a taxpayer can't pay their full tax liability or if paying would cause financial hardship, they may want to consider applying for an Offer in Compromise. This agreement between a taxpayer and the IRS settles a tax debt for less than the full amount owed.

What is the IRS 6 year rule? ›

6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.

Can I negotiate with the IRS myself? ›

You can submit an offer on taxes owed individually and for your business. Here are the main reasons the IRS may agree to accept less than the full amount you owe: Doubt as to Collectability: This means you don't have enough income or assets to pay your balance due in full.

How much will the IRS usually settle for? ›

How much will the IRS settle for? The IRS will often settle for what it deems you can feasibly pay. To determine this, the agency will take into account your assets (home, car, etc.), your income, your monthly expenses (rent, utilities, child care, etc.), your savings, and more.

How do I get rid of IRS tax debt? ›

If you need to settle your IRS tax debt, you have a few different options, including:
  1. Tax debt relief. ...
  2. Offer in compromise. ...
  3. Installment agreement. ...
  4. Temporary delay. ...
  5. Penalty abatement. ...
  6. DIY debt settlement.
Mar 11, 2024

Does the IRS forgive tax debt after 10 years? ›

Yes, after 10 years, the IRS forgives tax debt.

However, it is important to note that there are certain circ*mstances, such as bankruptcy or certain collection activities, which may extend the statute of limitations.

What is the best tax relief program? ›

Best Tax Relief Companies for April 2024
  • Best Overall: Precision Tax Relief.
  • Best Guarantee: Anthem Tax Services.
  • Best for Large Tax Debt: Fortress Tax Relief.
  • Best for Small Tax Debt: CommunityTax.
  • Best for Businesses: Enterprise Consultants Group.
  • Best for Spanish Speakers: Tax Defense Network.

What's the best tax relief program? ›

Best tax relief companies 2024
  • Best for money-back guarantee: Anthem Tax Services.
  • Best for businesses: Larson Tax Relief.
  • Best for complicated tax issues: Community Tax Relief.
  • Best for cost: Tax Defense Network.
  • Best for customer service: Instant Tax Solutions.
Mar 12, 2024

Does the IRS have a hardship program? ›

Answer: The IRS Hardship Program, also known as the Currently Not Collectible (CNC) status, is a program that provides temporary relief to taxpayers who are experiencing financial hardship and cannot afford to pay their tax debt.

What is the IRS one time forgiveness? ›

One-time forgiveness, otherwise known as penalty abatement, is an IRS program that waives any penalties facing taxpayers who have made an error in filing an income tax return or paying on time. This program isn't for you if you're notoriously late on filing taxes or have multiple unresolved penalties.

What if I owe the IRS money but can't pay? ›

Payment Plans – The IRS provides a variety of payment plan options, including the ability to apply online for a payment plan. The benefit to applying online is that once you complete your online application, you will receive immediate notification of whether your payment plan has been approved.

How long does IRS forgive tax debt? ›

In general, the Internal Revenue Service (IRS) has 10 years to collect unpaid tax debt. After that, the debt is wiped clean from its books and the IRS writes it off. This is called the 10 Year Statute of Limitations. It is not in the financial interest of the IRS to make this statute widely known.

Who qualifies for IRS penalty forgiveness? ›

The IRS will automatically waive failure-to-pay penalties on unpaid taxes less than $100,000 for tax years 2020 or 2021. You're eligible for this relief if you meet all the following criteria: Filed a Form 1040 or 1041 tax return for years 2020 and/or 2021. Were assessed taxes of less than $100,000.

Is the IRS hardship program real? ›

While you're in IRS Hardship status, the government cannot take your paycheck, seize your property, or wipe your bank account. However, just because they let up on their collection activity and pressure does not mean your obligations are lifted. IRS hardship program does not stop penalties and interests.

Who is eligible for the IRS hardship program? ›

To be eligible for the IRS Hardship Program, taxpayers must demonstrate that they are facing significant financial hardship and are unable to pay their tax debts.

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