IRS Debt Forgiveness Program – What Is It?
- May 27, 2019
- Posted by: asal
- Category: Tax Resolution
The IRS understands that sometimes taxpayers get into trouble with back taxes. For that reason, the IRS offers a debt forgiveness program. The IRS debt forgiveness program is for those who can’t afford to pay their back tax debt. Under specific circumstances, taxpayers can have their tax deb partially forgiven. When the IRS considers forgiving your back tax debt, there are several factors they consider. The IRS will first take a look at your current financial condition. Before attempting to get loan forgiveness from the IRS, consult a tax resolution professional. A tax relief expert can determine how likely you are to get debt forgiveness from the IRS. If the IRS determines you are in poor financial shape, they can decide they cannot collect your back tax debt. If any collection action forces you into a financial crisis, the IRS can’t collect the back taxes.
Pay Less Tax Debt With Offer In Compromise
If you can pay a partial amount of your tax debt, there is hope. You can work with a tax resolution expert to apply for an Offer in Compromise. An Offer in Compromise is a government payment plan that allows you to resolve your remaining debt for less. You can pay the lesser amount in a lump sum or fixed monthly installments. Platinum Tax Defenders has successfully saved their clients thousands in back taxes through Offer in Compromise deals. Recently, the Platinum team successfully reduced a client’s tax debt from over $140,000 to $100.
Owing Less Than $10,000 In Back Taxes
If you owe less than $10,000 in back taxes, you can file for an Offer in Compromise online. Qualifying factors for taxpayers who owe less than $10,000 include:
- During the past five years, you have submitted all income tax returns on time. If you and your spouse file a joint return, those returns will have to be current as well. Also, you must pay any income tax due and not have entered into an Installment Agreement.
- You agree to pay the full amount of back taxes you owe within three years. Also, taxpayers must comply with the tax laws while the agreement is in effect.
- The individual is financially unable to pay the liability in full by the due date.
Owing More Than $10,000 But Less Than $50,000
Those who owe more than $10,000 might qualify for a Streamlined Installment Agreement. You can apply for a Streamlined Installment Agreement online. With a Streamlined Installment Agreement, you promise to pay the tax you owe in 72 months or six years.
What if You Owe More Than $50,000?
For taxpayers who owe more than $50,000, it is advisable to contact a tax resolution expert. Taxpayers who owe more than $10,000 should also consult with a tax relief professional. A tax relief professional is the best person to determine how to pay back tax debt. For taxpayers who owe more than $50,000 or who have declared bankruptcy, they will need to contact the IRS directly. In this case, you cannot file online if you owe a massive amount of back tax debt or have filed bankruptcy. Before you speak with the IRS directly, contact a tax resolution expert.
IRS Fresh Start Initiative
The IRS makes it easier for taxpayers to qualify for an OIC with the Fresh Start initiative. Taxpayers no longer have to disclose extensive financial details to the IRS to judge your ability to pay. The Fresh Start program also makes it easier for taxpayers to afford back tax payments. For help with applying to the Fresh Start program, contact a tax resolution specialist. A tax relief expert will be familiar with how to best apply for the Fresh Start program to get approval.
Benefits of the IRS Tax Debt Forgiveness Program
There are benefits to the IRS’ tax debt forgiveness program. Below are some of the benefits of this program.
The Government Can’t Garnish Your Wages
If you don’t pay back taxes, the IRS can garnish your wages. However, if you qualify for the IRS Tax Debt Forgiveness program, the Government can’t garnish your wages.
You Can Pay Less Than You Owe
One of the significant benefits of the debt forgiveness program is that you can pay less than you owe. You still have to pay back some taxes, but it could be a much smaller amount. A less tax debt will enable you to pay off your debt more quickly.
Removal of Tax Liens
Another benefit of the debt forgiveness program is the removal of any liens from your records. This benefit is significant because the Government can possess your property if you don’t pay back taxes.
What To Do If You Owe Back Taxes?
It’s not easy to understand your tax debt by yourself. Also, it’s hard to deal with the IRS alone. Even with available programs such as the Fresh Start program, dealing with back taxes can still be challenging. Fortunately, tax relief experts can help you navigate your tax debt issues. Platinum Tax Defender’s team of trained tax professionals has been helping people with IRS issues since 2011. At Platinum Tax Defenders, we start with a free consultation to get you on your way to a debt-free future.
Get Help From A Tax Relief Professional
Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.