Do You Need IRS Debt Forgiveness in 2024?
Find out if you qualify for the IRS Debt Forgiveness Program today. Talk to a tax debt forgiveness expert or use the calculator to see how much you can save.
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 to certain people only, so contact us to find out if you 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 To Qualify
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:
- There is doubt as to the collectibility of the tax debt.
- The amount offered represents the most that can be collected from you, given your ability to pay.
- 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:
- Lump Sum Cash – You pay the entire amount of the offer with one payment.
- Short-Term Payment Plan – You agree to pay the amount of the offer in five or fewer payments.
- 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
